Michigan to get $156M in federal funds for rooftop solar panels in low-income areas

Michigan will get more than $156 million in federal funding for a program to expand residential solar in low-income communities, part of a federal initiative to confront climate change while reducing energy bills for people in underserved areas.

The U.S. Environmental Protection Agency announced the funding award Monday. Michigan was one of 60 states, tribes or regional groups to receive a total of $7 billion in grants, which are funded by the $27 billion Greenhouse Gas Reduction Fund in the 2022 Inflation Reduction Act.

"There has been a very stark divide when it comes to underserved communities getting access to clean energy resources," said Ali Dirul, CEO of Ryter Cooperative Industries, a Detroit-based solar project management company. "These communities have been the most disadvantaged and the most looked over, but they also have the highest infrastructure needs. They also have the highest utility bills."

The funding could help protect residents during power outages, Dirul said, an important issue in a state with a notoriously unreliable grid. He said people want to be able to generate and store their own power so they can prevent their food from spoiling during a blackout.

"If there's any way to invest in energy so people have the opportunity and these communities have the opportunity to own their own power, but additionally have that power in times when the grid is unstable, that helps everybody," he said.

The Michigan Department of Environment, Great Lakes and Energy will administer the program, called Michigan Healthy Solar for All.

Monday's funding announcement kicks off what will be a lengthy process of getting the program underway, said Cory Connolly, chief climate officer in EGLE's Office of Climate and Energy. The department will hire staff to administer the $156.12 million and will seek input on its Healthy Solar for All plans over the next year. Connolly said he expects the program to roll out in summer 2025.

The solar program will focus on direct financial assistance for rooftop solar, community solar, storage and home upgrades, he said, such as "making sure folks have a roof that can really support solar."

Andrew Kaplowitz, climate and energy justice lead for Detroiters Working for Environmental Justice, said the state department should take a "whole home" approach when doling out the grant dollars. That means fixing roofs, replacing old appliances and insulating houses in addition to installing solar panels.

"If we're trying to make a difference for the most impacted, there needs to be a holistic approach to it," Kaplowitz said. "Addressing other issues in the house too, not just sticking solar panels on a house that's 100-plus years old and going to crumble, but making sure the house will get needed repairs and last another 100 years."

Dirul said he hopes EGLE partners with community-based organizations and contractors when administering the money, since they have relationships with their neighbors.

"When you invest and support Black and brown small businesses and contractors from these communities, they end up hiring from these communities," he said. "It's a compounded benefit of not only getting solar plus storage for the residents but also training people... and also inevitably hiring people from these communities."

EPA Administrator Michael Regan said he expects the $7 billion solar grant award to benefit more than 900,000 households in low-income communities, save those families a total of $350 million in annual energy costs, reduce greenhouse gas emissions, create jobs and improve air quality. It's part of the President Joe Biden Administration's Justice40 Initiative, which aims to ensure that 40% of the benefits of climate investments go to disadvantaged communities.

ckthompson@detroitnews.com