Michigan

Michigan can tap into significant renewable energy resources, particularly offshore wind energy, using today's technologies. Coal-fired power plants currently produce 58 percent of the state's electricity, making Michigan the 12th-largest global warming polluter in the country.(1) Developing local renewable energy sources can help drive Michigan's economic transformation while providing clean, reliable, inexpensive power for consumers and businesses. The wind energy industry alone could create 30,000 jobs here by 2030.(2)

In October 2008 Michigan passed a Renewable Portfolio Standard (RPS), which will allow the state to make major strides in renewable energy development over the next decade. The RPS requires electric utilities to generate at least 10 percent of their electric load with energy from renewable sources, or to negotiate the equivalent using tradable renewable energy certificates, by 2015.(3)

The renewables map shows current and future facilities generating energy from wind, solar, biomass and biogas in Michigan.

Wind

Michigan was among the fastest-growing wind energy states in 2008, vaulting from a capacity of 2.6 megawatts in 2007 to 127 megawatts in 2008.(4) Because Michigan's wind resources – namely, the gales whipping off the shores of Lake Michigan -- are close to existing transmission lines and metropolitan areas, its potential for wind power matches those of far windier Western states.(5) A study by the Michigan State Land Policy Institute found that at least 22,000 megawatts of offshore wind resource power is economically achievable(6) -- that's more than 6 percent of the state's electricity consumption, enough to power more than 6 million homes.(7) Michigan also has moderate onshore wind resources.(8)

Continuing the rapid growth of 2007 and 2008 could be Michigan's ticket out of its economic slump and into a clean energy future. In that short period, two major new wind-turbine manufacturers opened and three existing facilities expanded significantly, creating hundreds of new jobs.(9) If Michigan chooses to exploit its formidable wind energy potential, this industry alone could create more than 30,000 new jobs by 2030.(10)

Biomass Fuels and Cellulosic Ethanol

Waste from Michigan's towns, farms and forest industry is another untapped source of renewable energy. Locating biomass power plants near mills, disposal sites and farms would allow convenient collection of fuel sources and reduce transportation costs.(11)

A 2003 report prepared for the U.S. Department of Agriculture, Department of Energy and the National Renewable Energy Laboratory estimated that Michigan could generate 666 megawatts of power from agricultural waste, 248 megawatts from forest and mill residues and 203 megawatts from urban wood waste for a total of 1,117 megawatts of energy per year. That's enough to supply electricity to more than 700,000 households.(12) In 2006, by contrast, Michigan generated only about 70 million kilowatt-hours from biomass – there's plenty of room for improvement.(13)

The best biofuels are those that make it environmentally and economically possible to produce more food and fuel, and to do so in a way that reduces global warming pollution, conserves and enhances our soil and water resources, protects our fragile wildlands and native ecosystems and improves the economic welfare of workers and communities. Cellulosic ethanol, which is made from crop waste (such as corn stover) and non-food crops, is the biofuel of the future.

Crops grown specifically to produce cellulosic ethanol, such as switchgrass, willow and hybrid poplar, all grow nicely in Michigan's climate and soils -- and make Michigan's biomass potential even greater. The state could be producing 4 million dry tons of sustainable feedstock annually for bioenergy, which means more than 50 million gallons of ethanol, or enough fuel to power more than 80,000 cars each year.(14, 15)

Developing the biomass energy industry in Michigan can yield significant economic opportunities as well. A study completed by the Renewable Energy Policy Project in 2006 showed that using biomass energy to produce steam and electric power can produce 10.5 jobs per megawatt of added capacity.(16)

Biogas

Michigan's dairy operations produce more than 30 million tons of methane emissions each year from livestock waste. Turning some of that gas into electricity would reduce waste and be profitable for at least 72 of the state's dairies,(17) according to the EPA's AgStar program. It would also produce more than 50 megawatts of new power annually.(18) Michigan ranks among the top 10 states for potential biogas production from dairy operations.

Solar Power

Michigan's reasonably ample sunlight, averaging 4 to 4.5 kilowatt-hours per square meter per day, is a largely untapped energy source.(19) As of the end of 2008, according to the Energy Systems Bureau of Michigan, the state had 734 kilowatts' worth of installed solar photovoltaic systems,(20) but its economically feasible solar potential is much greater – estimated at more than 2,350 megawatts.(21)

Developing solar power will bring jobs as well as clean energy. Michigan is already home to a world leader in thin-film solar panel technology, United Solar, based in Auburn Hills.(22) With a staff of 242, the company has become an engine of economic growth – and United Solar plans to boost capacity at its Greenville plant from 180 to 300 megawatts by the end of 2010, creating about 500 new jobs.(23)

Renewable Energy Meets Wildland and Wildlife Conservation

Certain sensitive lands -- such as parks, monuments and wildlife conservation areas -- and ecologically sensitive marine areas are not appropriate for energy development. In some of these places, energy development is prohibited or limited by law or policy, and in others it would be highly controversial. NRDC does not endorse locating energy facilities or transmission lines in such areas. Siting decisions must always be made extremely carefully, with impacts mitigated and operations conducted in an environmentally responsible manner.

For more information on the intersection between clean energy development and wildland and wildlife conservation in the American West, including locations of parks, wildlife refuges and other conservation areas, see this Google Earth-based feature.

Toolkit

Economic Incentives for Renewable Energy Projects in Michigan

The Database of State Incentives for Renewables & Efficiency (DSIRE) lists federal, state and local government incentives for renewable energy projects in Michigan.

The Michigan Department of Energy, Labor and Economic Growth keeps up-to-date links of state and local funding, case studies and businesses specializing in renewable energy project development.

The Michigan Economic Development Corporation (MEDC) offers several financial incentives through grants and investment funds for alternative energy projects. MEDC has also created more than 150 distinct geographic regions for business and economic development through its Renaissance Zones program, which essentially waive state and local taxes for businesses within their boundaries. For environmental improvements to business practices, the P2 Loan Program provides loans of up to $400,000 at an interest rate of 5 percent or less to independently owned businesses with 500 or fewer full-time employees.

The current Farm Bill provides a number of incentives for renewable energy. The Environmental Law and Policy Center maintains a helpful website called Farm Energy, which outlines current incentives and monitors the development of new ones.

Michigan homeowners and businesses can use this handy guide from the state government to navigate federal incentives available for renewable energy. The U.S. Department of Energy (DOE) helps you compare utilities' green energy purchasing programs in Michigan.

Wind

The DOE's Wind Powering America site provides a helpful summary of wind power activities and resources in Michigan, including a wind working group, anemometer loan program, wind maps, a small wind consumer's guide and state workshops.

Small wind systems development information for Michigan is available from the American Wind Energy Association as well as this detailed guide from the DOE's Office of Energy Efficiency and Renewable Energy (EERE).

The Michigan Anemometer Loan Program provides advice and capital assistance to nonprofit organizations, landowners, farmers, small businesses and municipalities interested in wind power. Successful applicants (see application) can borrow equipment for studies, site inspections, installations and other exploratory work over a twelve-month period.

Biomass

Michigan has a number of incentives for the use of alternative fuels, the purchase of an alternative-fuel vehicle, and the construction or purchase of an alternative-fuel refueling station or equipment. See the Alternative Fuels and Advanced Vehicles Data Center at the EERE website for a list of state and federal incentives and laws.

The Michigan Biomass Energy Program (MBEP) provides information for biomass project developers looking to deploy new technologies throughout the state. The Workshop and Event Funding Program will provide up to $2,500 to support a workshop or event that promotes the production, commercialization and use of biomass in Michigan.

Biogas

The Rural Energy for America Program, or REAP (formerly known as Section 9006 in the 2002 Farm Bill), is part of the 2008 Farm Bill. Among other things, REAP provides grants and loan guarantees to farmers, ranchers and rural small businesses to help purchase renewable energy systems or make energy efficiency improvements. Final guidelines for 2009 have yet to be released; please see this link for details on last year's guidelines.

The EPA's AgSTAR program has a comprehensive handbook on developing biogas technology. The site includes FarmWare, a free decision-making software package that can help you assess the feasibility of biogas on your farm.

Solar Power

Solar Power Rocks keeps an up-to-date and comprehensive page on solar energy rebates, tax credits and incentives available to Michigan residents.

The Michigan Public Service Commission offers net metering to customers who generate their own electricity. If you install a solar energy system on your property and connect it to the local electric grid, net metering allows you to send any excess power to the surrounding community -- causing your meter to run backward and your bill to shrink accordingly.

The Michigan Energy Office offers small grants to projects that demonstrate to a public audience that solar energy works in Michigan.