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Michigan, along with many other states, is set to receive significant funding under the federal Inflation Reduction Act’s Solar for All program (more than $156 million for Michigan specifically). With these funds the state can dramatically increase community and household access to the benefits of solar energy. The program requires that participating low-income households see a minimum of 20% savings in their electricity bills—but it’s important for Michigan officials to get the details right in setting up the program.
Best practices for Solar for All
Last month, the Empower Michigan coalition shared resources on best practices for community engagement and program design with the Michigan Department of Environment, Great Lakes, and Energy (EGLE). Empower Michigan is made up of community and environmental organizations including the Michigan Environmental Justice Coalition, Michigan Interfaith Power & Light, West Michigan Environmental Action Council, Progress Michigan, Soulardarity, Clean Water Action, Union of Concerned Scientists, and Vote Solar.
EGLE has submitted a revised workplan to the US Environmental Protection Agency (EPA), has received federal funding from EPA, and is in the process of hiring a Michigan Solar for All Director. EGLE will also be spending the next year engaging with stakeholders and designing the Michigan Solar for All (MISFA) program.
Empower Michigan’s recommendations to EGLE are designed to maximize benefits to communities, especially lower-wealth households, and I encourage EGLE to adopt them to help achieve the full promise of the program. Some highlights of the recommendations include:
- EGLE should work closely with impacted and targeted communities in designing the program, incorporate the Jemez Principles to uphold tenets of energy justice and democracy, and ensure that governmental staff are trained in understanding past injustices and how to avoid furthering those harms.
- Michigan Solar for All funds should be distributed directly to community-based cooperatives and limited liability companies (LLCs) to plan and build community-owned community solar projects in Michigan.
- Preference should be given to low-income customers, as required under the federal Solar for All program.
- For rooftop solar installations, Michigan Solar for All should include weatherization and efficiency measures for buildings to maximize benefits.
Community solar policy is needed in Michigan
“Community solar” refers to solar projects developed in or near communities in which individual customers and businesses can subscribe to the projects and receive credits on their electricity bills for the value of the power the solar panels put onto the electric grid. Community solar is an important tool to allow customers to benefit from solar generation when they may not be able to afford the upfront cost of installing rooftop solar, or when they are renters or otherwise cannot put solar panels on their rooftops due to tree coverage or other factors.
Empower Michigan’s recommendations emphasize the need for the state to enact community solar policy. To achieve the full potential of Michigan’s Solar for All program, the state legislature should require utilities to provide bill credits to customers who subscribe to community solar facilities. Currently, utilities such as Consumers Energy and DTE only offer community solar subscriptions for utility-owned solar projects. Enabling third-party owned community solar, such as through solar cooperatives or non-profits, would unlock the potential for many more people to benefit from solar as numerous states have already done for many years.
EGLE expects that more than 90% of the solar megawatts deployed under the Michigan Solar for All program will be in the community solar category. Allowing the utilities to continue refusing bill credits for third-party solar facilities means that Solar for All funding could largely be funneled to utility-owned projects—missing out on opportunities to deliver greater benefits to communities.
In addition to other important energy justice policies, the Michigan legislature needs to pass community solar bills this fall and unlock the ability to fully leverage the federal Solar for All funding.
Michiganders can get involved
Michigan has a lot of benefits on the table if EGLE and state policymakers can get Solar for All right in the state.
Sign up here to receive updates on the Michigan Solar for All program and stay informed about opportunities to urge EGLE to adopt Empower Michigan’s recommendations for equitable, effective stakeholder outreach and program design.
You can also tell your legislator to support community solar policy in Michigan today!
