Everything You Need to Know about EV Charging Incentives in Michigan

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Like many states, Michigan offers substantial financial assistance to commercial and residential customers who wish to install chargers for electric vehicles (EVs). Depending on the program, incentives can apply to the installation of either level two or level three EV charging stations.

Level three EV charging stations, or direct-current (DC) fast chargers, can charge 80% in about a half hour. By contrast, level two chargers are 240-volt outlets that can charge a battery in around four to six hours.

EV Charging Stations

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Michigan has prioritized the development of a statewide network of DC fast chargers by 2030 in two phases. Phase one focuses on DC fast charger installation along major interstates, in large part to support the state’s $26 billion tourism industry. Phase two focuses on the placement of DC fast chargers in select cities.

Savvy, proactive companies can take advantage of EV charger rebates and other incentives for equipment cost, infrastructure installation, and utility rate reductions. But it can be difficult to procure financial assistance without an experienced, knowledgeable partner. Future Energy provides a concierge-style service that can help businesses in Michigan take advantage of all available incentives, grants, and credits for the installation of EV charging stations.


What Is Charge Up Michigan?

For equipment installation, the state provides incentives through its Charge Up Michigan Program. Through the Department of Environment, Great Lakes, and Energy (EGLE), the state is allocating $9.7 million in grants. The money comes from the state’s share of the Volkswagen diesel emissions settlement with the US Environmental Protection Agency. 

Any public or private organization located in Michigan or that has significant presence in Michigan may apply for a grant. Eligibility extends to municipalities as well as private businesses. The program awards up to $70,000 per station location or up to one-third of the total equipment cost.

The state requires that applicants for Charge Up Michigan grants are in partnership with the electric utility that services the area of the charger installation. The electric utility must approve the installation. In short, this means applying for a grant also involves enrolling in a utility EV program. 

The Michigan Public Service Commission (MPSC) recognizes EV programs through all three Michigan utilities: Consumers Energy, DTE Electric, and Indiana Michigan Power Company. These programs involve encouraging EV adoption, testing technology and rate designs, and monitoring customer response.  

In addition to the mandated partnership with a local utility company, the state generally requires grant recipients to place publicly available chargers in certain locations. Two 2019 Michigan State University studies looked at how to optimize the placement of EV charging stations throughout the state.


How Does My Utility Company Provide Incentives?

For electrical infrastructure, residential and commercial customers can receive an EV charger rebate through the utility company. This rebate is called the Electric Vehicle Supply Equipment (EVSE) Rebate and differs slightly depending on the utility company involved.

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Consumers Energy offers rebates through its PowerMIDrive program. Companies who install DC fast chargers can receive a rebate up to $70,000. This is in addition to the state’s equipment grant. Residential customers who install a level two charger at home can receive a $500 rebate per vehicle. 


PowerMiDrive Program Rebates

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In addition, Consumers Energy offers a Nighttime Savers Rate for drivers who charge between 7:00 p.m. and 6:00 a.m. Depending on the season, customers can save from 1.3 to 3.8 cents per kilowatt if they charge during these off-peak hours.

In 2020, Consumers Energy introduced an additional program: PowerMIFleet. PowerMIFleet offers fleet owners and operators several categories of rebates. First, up to $5,000 is available for the installation of a level two port. Other available grants include $35,000 for a nonpublic DC fast charger and $70,000 for a public DC fast charger. Consumers Energy will also pay for upgrades to electrical infrastructure, such as power lines, transformers, and meters.


PowerMiFleet Program Rebates

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DTE Electric’s program is called Charging Forward. For public charger site hosts, DTE Electric offers rebates of up to $20,000 toward infrastructure. The company that installs the EV charger is responsible for the equipment cost, which a state grant could help cover. Residential customers can receive a rebate for installing a level two charger and agreeing to enroll in related utility programs.

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Indiana Michigan Power does not offer a rebate. Rather, its EV pilot program measures EV charging load separately from the customer’s overall load. This allows Indiana Michigan to charge a lower rate for EV charging than for regular electrical use.


Why Should EV Charging Stations Be a Priority for My Business?

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First, there is financial urgency. EGLE is accepting and processing applications on a first-come, first-served basis. It will award grants until it has exhausted its funding. As of May 2021, the state has awarded more than 41% of its $9.7 million allocation. Furthermore, the utilities’ EV programs run only through 2022.

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Second, the availability of EV charging stations on your property increases your competitiveness, whether it be with employees, tenants, potential customers, or tourists passing through. 

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Third, contributing to a broad network of charging stations will facilitate the increase in EV usage, which is good for the environment. You can be at the forefront of the efforts of Michigan automakers to position themselves as leaders in EV manufacturing. Detroit-based General Motors plans to phase out vehicles using combustion engines by 2035. Stellantis Auto Group has announced a $35 billion investment in EVs and autonomous cars. This promise includes production of four new electric vehicles in their future lineup.

Finding a partner to help navigate the landscape of available incentives is key to maximizing your investment. Whether you’ve made the decision already or aren’t ready to commit, it’s worth taking the next step to see if this decision is right for your business.

Rebates & Financial Incentives

We work with technology imbedded hardware that involves aggressive government and utility tax credits, rebates and grants that drastically improve your cash flow. Contact us to find out what funding is available helping you choose the right hardware. Our team will work with you and the incentive program holders to get your application approved and processed quickly.

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