Planet Detroit’s Solar Owned by Utility
TL/DR –
Kalamazoo, Michigan, is changing its clean energy strategy to reach its goal of carbon neutrality by 2040 by partnering with Consumers Energy. Instead of focusing on rooftop solar, which proved to be too costly, the city will pay 15.8 cents per kWh for 43 million kWh of solar power annually from large solar projects built by Consumers Energy. This move is expected to reduce approximately 80% of the city’s emissions from electricity and the city will also receive Renewable Energy Credits to further its energy goals.
Overview
Kalamazoo, Michigan has entered a contract with Consumers Energy to power city buildings through solar energy. Initially targeting rooftop solar, the cost turned out to be prohibitive, leading to a shift in strategy. Kalamazoo will now purchase 43 million kWh of solar power each year at a fixed rate of 15.8 cents per kWh, reducing the city’s electricity emissions by about 80%. The city will also receive Renewable Energy Credits to help achieve its energy targets.
Shifting Energy Strategy
Following a climate emergency declaration in 2019, Kalamazoo aimed to become carbon neutral by 2040. The city initially explored rooftop solar but concluded it was not economically feasible. It has joined other cities like Grand Rapids, Milwaukee, and Muskegon, in partnering with utilities for large-scale solar projects. “Working with the utility seemed to make the most sense,” says Kalamazoo’s sustainability planner, Justin Gish.
Challenges with Rooftop Solar
The city’s biggest power user, the wastewater treatment station, only has a 225 square feet roofing space. Covering the city’s largest roof at the public service station (26,000 square feet) with solar would cost around $750,000 and only provide 14% of the power the building uses annually. This led the city to partner with Consumers Energy.
A Partnership for Solar Energy
Through a solar subscription program with Consumers Energy, Kalamazoo will instruct the utility on its solar energy needs starting in 2028. Consumers Energy will then use subscription fees to construct new solar farms. This 20-year contract will cover 80% of Kalamazoo’s electricity emissions, improve energy efficiency in city buildings, and provide Renewable Energy Credits.
Costs and Benefits
John Farrell, co-director of the Institute for Local Self-Reliance, noted that while deals with utilities could be practical for budget-strapped cities, they should still strive to develop their own solar systems. He also questioned whether utilities should charge more for clean power, which is increasingly a cheaper alternative to fossil fuels.
Utility-Scale Solar
Utility-scale solar is more cost-effective per kilowatt, but when a public building can accommodate solar, “you are getting the full retail value of that energy,” says John Delurey, Midwest deputy director of advocacy group Vote Solar. He also pointed out that Michigan law mandates all energy be clean by 2040; and 50% by 2030.
A Complement to Rooftop
Meanwhile in Milwaukee, the city is also exploring a mix of distributed solar and utility-scale partnerships. It has set goals to power 25% of city operations with solar by 2025 and is partnering with We Energies to build solar farms near the airport and outside the city limits in Caledonia. The city is also installing its own rooftop solar on public buildings such as the Martin Luther King Jr. library.
On Earth Day 2024, Madison announced it has installed 2 MW of solar on 38 city rooftops. The city also partnered with utility MGE to develop the 8 MW Hermsdorf Solar Fields on a city landfill. The project went online in 2022, contributing to the city’s goal of 100% clean energy for city operations by 2030.
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