Background

Michigan Saves is an innovative program that will make energy efficiency upgrades and installing renewable energy systems more affordable for all types of Michigan energy consumers, including businesses, local governments, schools, and residents. Michigan Saves will work with participating lenders to finance the installation of energy measures with no upfront cost to utility customers. Customers pay back the cost of the measures over time using utility bill savings.

In June 2009, Public Sector Consultants Inc. (PSC), a Michigan-based policy analysis and program management firm, and its technical partner, the Delta Institute, were awarded a 28-month grant by the Michigan Public Service Commission (MPSC) to establish the Michigan Saves organization, and design and launch the Michigan Saves energy efficiency financing program.

Michigan Saves is now a registered and operational nonprofit organization in the state of Michigan. Over the duration of the grant, PSC and Delta will continue to build the capacity of the organization and develop the administrative structure, financing tools, contracts, and operational procedures used by Michigan Saves and its partners.

Over the past six months, Michigan Saves has focused on building a program that takes into account lessons learned from similar programs around the country but also addresses the particular needs of Michigan homeowners, businesses, and institutions. From August to December 2009, Michigan Saves hosted a series of topic-oriented meetings open to the public to gather input on elements of the program as they evolved. The result is a program with a three-pronged approach tailored to meet the different needs of homeowners, small businesses, and institutions. For more on the program framework, click here.

Michigan Saves will use its $6.5 million trust to leverage private sector financing for energy efficiency, stretching the value of ratepayer dollars and making energy efficiency accessible to more consumers. It must also ensure that retrofits result in real reductions in energy use.

Pilot programs will launch in the first quarter of 2010 to test critical aspects of program design, and full implementation is expected to begin later in the year. Check our website for details as they become available, or sign up for updates on the program and contractor training requirements and opportunities. More information on Michigan Saves and resources on energy efficiency are available here.