With information from EGLE (Michigan Department of Environment, Great Lakes, and Energy)
LANSING, L'ANSE --The Michigan Department of Environment, Great Lakes, and Energy’s (EGLE) Michigan Solar Communities -- Low to Moderate Income Access Program has been named one of this year’s State Leadership in Clean Energy award winners by the Clean Energy States Alliance (CESA). The Village of L'Anse in the Upper Peninsula is one of two Michigan utilities that benefit from this winning program. The other is Cherryland Electric Cooperative near Traverse City.
Insert photo: EGLE's Clean Energy Engineer Lisa Thomas, who spearheaded the Michigan Solar Communities -- Low to Moderate Income Access Program that encourages the use of solar energy to reduce utility bills. (Photo courtesy EGLE)
"Offering alternatives to low- and moderate-income utility customers results in greater energy equity and broader public support for clean energy," EGLE Director Liesl Clark said. "Families participating in the program save money by having less burdensome utility costs. This program is an important step in the just transition to a clean energy future."
The Low to Moderate Income Access program, which launched in 2018, allows customers of these two utilities to purchase shares or panels in a community solar array and receive credits on their monthly bills. Cherryland installed 450 solar panels that produce two megawatts of power shared by 50 subscribers. The Village of L’Anse installed 340 solar panels that produce 110 kilowatts of power; 250 of those panels were set aside for 25 income-qualified subscribers. Both arrays received partial funding through grants from EGLE’s Energy Services.*
Brett Niemi, Energy Services representative for WPPI Energy, a non-profit wholesale energy provider that sells power to the Village of L'Anse, served as project manager for the L'Anse solar project, which now has a total of 340 panels, including the panels for the 25 income-qualified subscribers, who subscribe to 10 panels each and receive credit for the power those produce for 25 years. The additional panels allow other residents of the village to purchase panels at $385 per panel and receive credit for the power they produce for 25 years.
"A lot of people don't have a good spot to put solar panels on their house or property, so this gives them the opportunity to use renewable energy," Niemi said.
WPPI has purchased the energy from the solar panels through a contract with the Village of L'Anse, and the Village passes that money on to the people that subscribe to the solar panels.
"I help them (the Village of L'Anse) operate a professional utility," Niemi explained. "All the panels are sold out now. That was one of our goals."
The other two goals, he said, were a positive financial outcome for the subscribers and a net zero financial impact for the Village of L'Anse electric utility.
Niemi said he worked with Richelle Winkler, Michigan Tech professor of sociology and demography, and WUPPDR (Western Upper Peninsula Planning and Development Region) to do a feasibility study for the project and determine if there was enough interest for people to subscribe.
In his application for the Clean Energy award, Niemi wrote, "The research incorporated qualitative interviews with community leaders, community focus groups, and a survey to evaluate community members’ knowledge of solar photovoltaics as well as their interest in and ability to participate in a community solar program."
Winkler reported on the L'Anse solar project during her August 5, 2019, presentation, "UP Demographics and Implication for Energy" to members of the UP Energy Task Force during their meeting in St. Ignace. The solar array was still under construction at that time. From surveys she took in the L'Anse community, Winkler noted a high percentage of community support for the solar project.**
Jay Meldrum, director of Michigan Tech's Keweenaw Research Center, and his students also helped with the project.
L'Anse Village Manager Bob La Fave told Keweenaw Now he was excited about the work of all members of the project team resulting in the Clean Energy award.
"It really shows what public electric power can do for the people in our community, and hopefully this model can be used in other communities around the country," La Fave said.
In fact, according to Niemi's application document, "The team developed a guidebook for use by other public power utilities outlining how to use community engagement as a tool to explore and ultimately design a community solar program. The guidebook summarizes technical, economic, legal, and social topics that utilities should consider."
La Fave noted also that the project is a multi-pronged effort, since it includes energy efficiency through home weatherization as well, thanks to BHK (Baraga, Houghton, Keweenaw) Community Action, a local agency that signed people up to get their home weatherized.
La Fave said this community-owned utility will result in lower rates for residents.
"Since the citizens of the community own the electric utility, they govern the electric utility," he explained. "All of our rates are determined by the Village Council."
Participants in the Low to Moderate Income Access program are realizing between $20 and $30 a month in savings on their utility bills. Other benefits include these:
- Encouraging customers to be energy efficient.
- Improving understanding of renewable energy.
- Increasing health by having healthier homes maintained at safe temperature, improved air quality.
- Reducing greenhouse gas emissions.
- Lowering the number of late payments and accounts in arrears.
CESA, a nonprofit coalition of public agencies and organizations that work to advance clean energy, will host a webinar Thursday, July 23, on the Low to Moderate Income Access program with speakers from EGLE. You must register to participate in the webinar.
More information about community solar projects is available at the Office of Climate and Energy’s webpage.
* UPDATE (CORRECTION): We reported on June 17 the earlier number of 200 panels for the l'Anse income-qualified subscribers, according to EGLE's press release. We have updated that number to 250 panels for these subscribers who benefit from the Low to Moderate Income Access program. These are included in the present total of 340 panels in the L'Anse solar array.
** Editor's Note: Click here to see Richelle Winkler's August 5, 2019, presentation to the UP Energy Task Force. At one hour into the video, Winkler speaks about the L'Anse community solar project. Click here for the presentation slides. Visit the WPPI Energy Web site to learn more about their work.
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