Michigan, Wisconsin Cities Struggle to Meet Solar Goals with Rooftops
TL/DR –
The city of Kalamazoo, Michigan and utility Consumers Energy have agreed upon a new contract, signalling a shift in the city’s clean energy strategy as it aims to become carbon neutral by 2040. Originally, the city had planned to rely heavily on rooftop solar, but has now decided to partner with Consumers Energy on larger solar projects built and owned by the utility. Under the 20-year contract, Kalamazoo will pay a set rate of 15.8 cents per kWh for 43 million kWh of solar power per year, which is expected to eliminate about 80% of the city’s emissions from electricity.
Kalamazoo’s New Clean Energy Strategy
Kalamazoo, Michigan is adjusting its clean energy plan and partnering with utility Consumers Energy to reach its carbon neutrality goal by 2040. This move mirrors actions taken in cities such as Grand Rapids, Milwaukee, and Muskegon.
Local sustainability planner, Justin Gish, explained that while rooftop solar panels are popular, they alone cannot fulfill the city’s net-zero goals. Partnering with a utility for large-scale solar initiatives was the logical choice.
Indeed, calculations for rooftop solar panels in Kalamazoo revealed they would provide only 14% of the city’s annual power usage. Hence, the city joined Consumers Energy’s solar subscription program, which will support the construction of new solar farms like the 250 MW project in Muskegon.
Subscription Details and Future Plans
Under the 20-year contract, Kalamazoo will pay a fixed rate for 43 million kWh of solar power per year. This subscription will likely eradicate approximately 80% of Kalamazoo’s electricity emissions. The city also plans to increase its fleet of electric vehicles and improve energy efficiency in city buildings.
Consumers Energy spokesperson, Matt Johnson, suggests that it’s more cost-effective for cities to partner with utilities that maintain solar installations and pass the savings onto the customers. In addition to Kalamazoo, corporate customers like 7-Eleven, Walmart, and General Motors along with the state of Michigan are part of the Consumers Energy solar subscription program.
Rooftop vs. Utility-Scale Solar
Despite the appeal of utility-scale solar, advocates stress the importance of cities developing their own solar power sources. They argue distributed generation offers more benefits for customers, the grid, and the planet. Utility-scale solar may be more cost-effective per kilowatt, but it lacks the full retail value of energy that can be achieved with onsite consumption or battery-paired solar installations on public buildings.
It’s essential to note that Michigan law requires all energy be from clean sources by 2040. Hence, Consumers Energy needs to continue building or buying renewable power even without customers paying extra.
Case Study: Milwaukee’s Solar Endeavors
Since 2009, Milwaukee has aimed to power 25% of city operations with solar by 2025. The city has had a long-standing battle with We Energies over installing rooftop solar on City Hall and other buildings. Meanwhile, Milwaukee is paying approximately $84,000 extra per year for We Energies to build solar farms. These projects will provide enough power for 83 city buildings, and the city continues to pursue its own rooftop solar installations on public buildings.
The Ideal Approach to Solar Energy
According to John Farrell, co-director of the Institute for Local Self-Reliance, the best approach is a combination of city-owned distributed solar and utility-scale partnerships. Ownership of solar projects offers financial benefits, but it also comes with risks.
Farrell advocated the ideal scenario would involve solar panels on public buildings with battery storage for resiliency in case of power outages. This is an important lesson for cities grappling with the transition to clean energy while managing other pressing issues.
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