Michigan bill proposes community solar savings for low income residents

State Representative Donavan McKinney introduced House Bill 6041 to provide low income households in Michigan with guaranteed electricity bill savings through a community solar program.

The proposal aims to reserve 40% of participation for low income households, who could see at least 20% savings on their electricity bills. Standard residential subscribers under the plan would be guaranteed a minimum of 10% in savings.

Community solar allows residents to access clean energy even if they rent their homes, cannot afford installation, or have roofs unsuitable for solar panels. The bill currently remains stalled in committee. Michigan is one of 24 states without a community solar program, and while legislators have introduced six bills regarding shared solar since 2021, none have become law. DTE Energy and Consumers Energy oppose the proposals, claiming that non participating customers might have to cover the costs of the projects.

Representative McKinney argues that the Michigan Public Service Commission would prevent these costs from shifting to other customers. Other states have tested different models for shared solar. A study in Massachusetts found that its solar incentive program provided ratepayers with $1.49 in direct benefits for every dollar spent. Minnesota redesigned its program after discovering that credits exceeded the value of the power produced.

In Ann Arbor, voters approved a system where a utility owns and maintains solar and battery equipment on customer properties.