- Michigan community solar backers say legislation could help the state advance a range of climate, environmental justice and economic development goals.
- The legislation has bipartisan support from lawmakers and residents looking to lower energy bills, generate income for small farms and create jobs.
- However, DTE and Consumers oppose the bills saying they will add costs for ratepayers who don’t subscribe to community solar arrays.
A diverse group of Michigan community solar supporters showed up in Lansing last week to speak in favor of a pair of bills that would allow the state to join the 22 others that allow residents to subscribe to offsite solar arrays and receive bill credits for the energy produced.
Supporters offered testimony to the Michigan Senate Committee on Energy and the Environmental on June 13, saying the bipartisan legislation would advance a range of climate, environmental justice and economic development goals. But business groups and Michigan’s two largest investor-owned utilities, Consumers Energy and DTE Energy, oppose the bills, arguing community solar could add costs for non-subscribers.
Rafael Mojica, program director for the Highland Park-based nonprofit Soulardarity, was among those supporting the legislation, saying it could help address Michigan’s ongoing issues with power outages, build community wealth through collective ownership of solar projects and allow residents to save money.
“One of the most significant benefits of community solar projects is the potential to reduce energy costs for low-income households,” Mojica said. Community solar subscribers save an average of 10% on their utility bills.
Mojica said the legislation could make solar energy benefits available to those who can’t afford the high upfront cost, rent their homes, or have roofs that are unsuitable for solar. The legislation includes a provision that no less than 30% of the electricity produced by each solar installation be reserved for low-income households and organizations providing services for low-income residents.
Advocates also touted community solar’s potential to reduce air pollution and greenhouse gas emissions from the energy sector, which produces 29% of the state’s planet-warming emissions.
“Burning of fossil fuels is the largest contributor to air pollution, releasing a wide array of harmful emissions like mercury, sulfur and nitrogen oxides into our air and straight into the lungs of Michiganders,” said Carlee Knott, energy and climate policy coordinator for the Michigan Environmental Council. She said emissions from the burning of fossil fuels to produce electricity are often concentrated in environmentally overburdened communities, where they contribute to problems like asthma, cardiovascular disease and infant mortality.
From Ann Arbor to the U.P.: Michigan community solar finds backers statewide
Justin Carpenter, director of policy at the nonprofit Michigan Energy Innovation Business Council, told Planet Detroit the community solar legislation could benefit from bipartisan support statewide.
“It’s energy independence,” he said. “I think there are a lot of more libertarian-minded Republicans that are very on board with that, especially Up North where the electricity costs are a lot higher.”
State Sen. Ed McBroom (R-Vulcan), who co-sponsored the legislation with State Sen. Jeff Irwin (D-Ann Arbor), said community solar was one of the few opportunities he saw to lower energy bills for ratepayers in the Upper Peninsula. Energy users in the U.P. can pay significantly more for power than the average Michigan ratepayer as utilities must stretch power lines across hundreds of miles to serve relatively few customers.
Irwin said community solar could be an appropriate use for many of the state’s formerly industrial parcels, helping revitalize sites that may not be suitable for other uses. Allison Sutter, sustainability and performance management officer for the city of Grand Rapids, said her city has a 190-acre closed landfill that could be suitable for community solar if the legislation enabled it.
John Fournier, Ann Arbor deputy city administrator, said community solar projects could be significant for economic development and energy production. He cited an analysis from Michigan State University that found community solar could create an estimated 18,500 jobs in the state and bring in $1.4 billion in investments over the next 30 years.
“Nationally, 6.5 gigawatts of electricity is produced from community solar installations, which is about the equivalent of six Fermi 2 nuclear power plants,” he said, referring to the DTE nuclear facility on Lake Erie. “It is becoming an incredibly important part of the energy generation portfolio across the country. We can take advantage of these generation opportunities in Michigan as well.”
Utilities say there’s a cost to community solar
Representatives for DTE and Consumers didn’t speak in the hearing, but in a letter signed by utilities, business groups and the International Brotherhood of Electrical Workers, they argued that the legislation is “unnecessary and impractical” and that it would burden non-subscribers with the cost of the distribution infrastructure needed to support community solar.
These utilities have also spent heavily to influence the political process in the state, with nonprofits tied to DTE and Consumers spending $9.4 million in 2022, including $950,000 in donations to a nonprofit connected to Michigan Gov. Gretchen Whitmer.
In a statement to Planet Detroit, DTE spokesperson Ryan Lowry said, “DTE works closely with elected officials on our shared purpose of providing safe, reliable, affordable and clean energy to the more than three million residents and businesses we serve every day.”
In statements to Planet Detroit, the utilities endorsed their own programs where residents volunteer to pay extra to support utility-owned solar developments, DTE’s MIGreenPower program and Consumers’ Solar Gardens program.
However, community solar advocates have criticized these programs for charging customers a premium without offering the financial benefits of ownership.
Carpenter from the Michigan Energy Innovation Business Council disputed the argument that community solar could shift costs to other customers, saying solar developers often perform distribution system upgrades as part of their work, which can benefit all ratepayers.
Although Michigan lawmakers have introduced community solar bills before, Carpenter said he’s optimistic there’s support to advance legislation this year. He contrasted the legislation with the often heated opposition to large-scale wind and solar developments in the state, saying community solar projects would be too small to draw the same level of opposition while creating income for farmers and other landowners.
“I think this one garners a lot more grassroots-level interest,” he said. “The benefits are just so much more tangible.”