Michigan On-Bill Financing Law

On Dec. 27, Michigan Gov. Rick Snyder (R) signed HB 5397 into law, providing new financial tools for municipal electric utilities operating in the state to help their customers install distributed generation, electric vehicle charging stations, and energy efficiency technologies—including geothermal heat pump heating and cooling systems.

The legislation allows local municipal electric utilities operating in the state to set up clean energy programs and offer their customers loans for energy improvements—with installment payments set up as part of their monthly electric bills. The new law offers the geothermal heat pump industry in Michigan yet another tool to help finance renewable energy projects in the state. Supporters would like to see the law extended to electric cooperatives in Michigan.