SB 732 Michigan Senate · 2025-2026 Regular Session

Energy: alternative sources; distributed generation, storage, and aggregation; create program for in rate cases. Amends 2008 PA 295 (MCL 460.1001 - 460.1232) by adding secs. 243, 244, 245 & 246. TIE BAR WITH: SB 0731'25

SB 732 creates a new program allowing Michigan customers with rooftop solar, batteries, or other on-site energy systems (called "behind-the-meter generators") to earn payments for providing grid services like reducing peak demand or improving reliability during outages. It requires the Michigan Public Service Commission to develop rules within a year, ensuring fair compensation based on actual grid value - covering costs like reduced infrastructure needs and enhanced resilience - while prohibiting utilities from owning these systems. The program directly affects residential and commercial customers with eligible energy systems, as well as third-party aggregators that manage multiple systems. Key provisions include standardized contracts, consumer protections, and rules preventing double-compensation for the same service.
Bill status in committee 1 of 4 stages cleared
Introduction
Dec 2025
Committee Review
Floor Vote
Governor
Introduced Dec 10, 2025 Last action Mar 24, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Senate Introduced Bill Substitute (S-1) · 4 edits
MODERATE
The bill was amended to clarify that compensation programs must cover the full value of grid services provided by behind-the-meter generators and demand response resources. It also adds specific protections to ensure these resources are not compensated twice for the same service and prohibits investor-owned utilities from owning these generation resources.
Scope change
The scope of compensation requirements was expanded to explicitly list multiple types of grid services (such as peak demand reduction and resilience) and added new restrictions on utility ownership of eligible generators.
REQUIREMENT

Added a requirement that compensation must cover the full value of grid services, including efficiency improvements, peak demand reduction, resilience, ancillary services, and supply capacity constraints.

Added a rule allowing greater compensation for low-to-moderate income customers, environmental justice communities, and areas with frequent outages.

Added a new requirement prohibiting owners or aggregators from being compensated for the same grid service in both wholesale and retail electricity markets.

ELIGIBILITY

Modified the prohibition on utility ownership to specifically ban investor-owned utilities from owning behind-the-meter eligible electric generators.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
4
Key actions
1
Committee
3
Mar 24, 2026
Committee
REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-1)
upper
Mar 24, 2026
Upper · Passed
REPORTED FAVORABLY WITH SUBSTITUTE (S-1) 3/19/2026
upper
Dec 10, 2025
Committee
REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT
upper
Dec 10, 2025
Introduced
INTRODUCED BY SENATOR JEFF IRWIN
upper
1 primary · 6 co-sponsors

Sponsors