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Dec 27, 2023

Michigan Dems rally around bills aimed at increasing access to solar energy ⋆ Michigan Advance

Alexandra Beier/Getty Images Democratic lawmakers stressed “simple fixes” to Michigan’s energy woes in a web conference announcing the “MI Power for All” plan on Thursday. The plan combines six bills

Alexandra Beier/Getty Images

Democratic lawmakers stressed “simple fixes” to Michigan’s energy woes in a web conference announcing the “MI Power for All” plan on Thursday.

The plan combines six bills introduced earlier this year into a package focused on increasing access to solar energy within the state. If passed, lawmakers say these bills would also help address energy affordability and concerns of frequent power outages.

According to a 2022 report from the Citizens Utility Board of Michigan, the state has the 10th highest electricity costs in the nation. Another report from the Citizens Utility Board of Illinois ranked Michigan as among the worst in the nation when it comes to energy reliability, placing 46th in the country.

“Where I represent in the Upper Peninsula, the costs are even higher,” said Rep. Jenn Hill (D-Marquette). “As of Aug. 1, the average electricity rate for small residential customers in up Coast territory was nearly 30 cents a kilowatt. Despite these high rates, outages are common.”

The package includes House Bills 4839 and 4840, and Senate Bills 152, 153, 362 and 363.

House Bill 4839 was introduced in June by Hill as part of a package with Rep. Donavan McKinney’s (D-Detroit) House Bill 4840. Hill’s legislation would allow the Michigan Public Service Commission — which regulates energy companies in the state — to create a virtual power plant program. That initiative would allow customers who generate their own electricity to act as an independent power plant and receive compensation for providing benefits to the energy grid, including providing greater reliability and resilience and reducing the peak demand for energy.

McKinney’s bill would provide rebates to customers who install solar panels or battery storage systems providing $500 per kilowatt for a new solar energy system and $300 per kilowatt-hour for a new battery storage system. These incentives double for customers who qualify as low-or middle-income.

Senate Bills 152 and 153, introduced by Sens. Jeff Irwin (D-Ann Arbor) and Ed McBroom (R-Vulcan), would allow communities to create community solar projects. Those would entail installing solar panels in vacant spaces and giving community members the opportunity to subscribe and receive credit on the energy bills from the power generated by the panels.

Irwin also introduced Senate Bill 362 alongside Sen. Rosemary Bayer’s (D-West Bloomfield) Senate Bill 363. This set of bills would remove the state’s controversial cap on distributed energy generation and restore net metering, requiring utilities to pay individuals generating excess electricity back at the same rate they charge their customers.

Opponents of Michigan’s 1% distributed energy cap argue it creates barriers for individuals looking to generate their own energy using methods like rooftop solar panels. Under current state law, energy companies are only required to purchase 1% of their average yearly peak load from customers generating their own energy.

“We have to have a free, fair and functional system and the law must allow people to plug in and contribute to our clean energy future,” Irwin said. “So to ensure that we meet these ambitious climate goals, we absolutely need to lift the cap on distributive generation.”

The legislature is set to return from its summer break in September, ahead of the Environmental Protection Agency’s Sept. 26 deadline for its Solar for All competition, which will award a total of $7 billion in grants to improve access to solar energy in low-income communities.

According to a statement issued after the conference, Gov. Gretchen Whitmer’s administration filed a notice of intent to apply for a portion of the $7 billion available in federal funding from the program last month.

Lawmakers and businesses have pushed for the swift passage of policies intended to support clean energy in order to leverage federal funding that could help build out Michigan’s clean energy economy.

While Democrats face the possibility of a split House in the fall with two representatives, Lori Stone (D-Warren) and Kevin Coleman (D-Westland), advancing to the November general election in separate mayoral races,

Rep. Rachel Hood (D-Grand Rapids) said timing for federal funding is the main driver of these bills.

Hood introduced a bipartisan community solar package with Rep. John Roth (R-Traverse City). Hood’s bill, House Bill 4464, mirrors the language of McBroom’s Senate Bill 152, but includes additional language to make sure the state takes full advantage of federal clean energy funding.

Irwin expressed his confidence that these bills would receive bipartisan support, with his own packages already drawing Republican support.

“There are a lot of conservative members over the years who have been a part of these bill packages, saying ‘We need to unshackle our residents and give them the freedom to invest in clean energy.’ And if it makes sense economically, we need to make sure that we don’t restrict them legally from making these investments,” Irwin said.

“I expect that when these issues get discussed, you’re going to see some support coming from folks who still hold on to that ideology.”

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by Kyle Davidson, Michigan Advance August 25, 2023

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Kyle Davidson covers state government alongside health care, business and the environment. A graduate of Michigan State University, Kyle studied journalism and political science. He previously covered community events, breaking news, state policy and the environment for outlets including the Lansing State Journal, the Detroit Free Press and Capital News Service.