Ann Arbor, Mi Snapshot

ANN ARBOR, MI SNAPSHOT

City Population
Metro Area Population / 114,024
341,847
Serving Utility / DTE Energy
Utility Ownership Type / Investor Owned Utility
Prior Solar Installations
Photovoltaics (PV)
Solar Hot Water (SHW) / 86 kW (13 installations); Add’l 9.56kW for rest of Washtenaw County
19 systems (255 kWe)
City Solar Installation Goal(s) / 5000 SHW by 2015
Other City Green Goal(s) / 20% renewable energy by 2015
Total Program Funds
Amount Awarded
Cost Share / $525,003
$200,000
$325,003

ANN ARBOR APPROACH

The goal for Ann Arbor’s Solar America Cities program is to utilize a wide range of community partners and resources to remove market barriers to the adoption of solar energy while simultaneously increasing consumer awareness and demand, and helping solar energy manufacturers and contractors to succeed. Expected outcomes include a Solar Plan for Ann Arbor, one or more large-scale photovoltaic demonstration projects, more small-scale solar hot water and photovoltaic demonstration projects, greater consumer awareness of solar options, a simpler permitting process for solar projects, and proof that solar energy works even in cloudy cities.

The Energy Coordinator will form a team of City staff stakeholders including Planning, Environment, Building, Emergency Preparedness, Code Officials and any others. The City has two significant partners who will be required to sign sub-grantee agreements with the City of Ann Arbor: the Clean Energy Coalition and the Great Lakes Renewable Energy Association. These agreements will define specific tasks to be performed related to the Solar Cities Partnership and corresponding financial commitments. The Clean Energy Coalition, a local non-profit specializing in energy efficiency and renewable energy programs, will be providing support services for a wide range of planning and marketing goals as well as some implementation projects. The Great Lakes Renewable Energy Association has served as the State of Michigan’s Million Solar Roofs partner and will build on the networks and momentum formed through that role to provide support for a variety of training and outreach objectives.

Ann Arbor Partners

The main partners are:

1. City of Ann Arbor Energy Office (Project Administrator)

2. Clean Energy Coalition (Project Contractor)

3. Great Lakes Renewable Energy Association (Project Contractor)

Supporting project partners include:

1. Ann Arbor Office of Community Development

2. City of Ann Arbor Emergency Management Department

3. University of Michigan Memorial Phoenix Energy Institute

4. NextEnergy

5. Ann Arbor Downtown Development Authority

6. Ann Arbor District Library

7. Ann Arbor Hands On Museum

8. Pfizer

9. Ecology Center

10. Ann Arbor Energy Commission

11. Washtenaw County Government

12. DTE Energy

13. State of Michigan Energy Office

14. Michigan Economic Development Corporation

15. Michigan Department of Environmental Quality

16. Michigan Governor Jennifer Granholm

17. United Solar Ovonics

18. University of Michigan Taubman College of Architecture & Urban Planning

Ann Arbor, MI “Solar Environment” BENCHMARKING & TRACKING MATRIX

The Benchmarking & Tracking Matrix provides a quarterly overview of the City’s status with regard to policies and activities that affect solar deployment. For cities awarded in 2007, benchmarking was completed July 1 – September 30, 2007; for cities awarded in 2008, benchmarking was completed April 1 – June 30, 2008. For each policy or activity marked as “Yes” the listed status is hyperlinked to a more detailed description in the below “Benchmarking & Tracking Description.” For some policies or activities there are multiple providers listed. If no status is listed for a certain policy or action, it means DOE staff have not yet confirmed the status.

Solar Environment / Benchmark:
Jul 1 –
Sept 30 / 2007
Oct 1 –
Dec 31 / 2008
Jan 1 –
Mar 31 / 2008
Apr 1 –
Jun 30 / 2008
Jul 1 –
Sept 30 / 2008
Oct 1 –
Dec 30 / 2009
Jan 1 –
Mar 31 / 2009
Apr 1 –
Jun 30 / 2009
Jul 1 –
Sept 30
Rules, Regulations, and Policies
Interconnection Standards
City / NO / NO / NO / NO / NO / NO
State / YES / YES / YES / YES / YES / YES U
Net Metering
City / NO / NO / NO / NO / NO / NO
State / YES / YES / YES / YES / YES / YES U
Solar Set-Asides in RPS
City / NO / NO / NO / NO / NO / NO
State / NO* / NO* / NO* / NO* / NO* / NO*
Public Benefits Funds
City / NO / NO / NO / NO / NO / NO
State / YES / YES / YES / YES / YES / YES
Solar Access Laws
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Solar Mandates in Building Standards
City / NO / NO / NO / NO / NO / NO
State / NO* / NO* / NO* / NO* / NO* / NO* U
Expedited Solar System Permitting
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Solar in Emergency Preparedness Plan
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Financial Incentives
Direct Incentives
City / NO / NO / NO / NO / NO / NO
State / YES / YES / YES / YES / YES / YES
Low-Interest Loans / Innovative Financing Packages
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO` / NO / NO
Income/Investment Tax Credits
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Production Tax Credits
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Property Tax Incentives
City / NO / NO / NO / NO / NO / NO
State / YES / YES / YES / YES / YES / YES
Sales Tax Incentives
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Permit Fee Discounts/Waivers
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Property Tax Assessment Financing
City / NO / NO / NO / NO / NO / NO
State / NO / NO / NO / NO / NO / NO
Industry Development Incentives
City / NO / NO / NO / NO / NO / NO
State / YES / YES / YES / YES / ES / YES
Utility Programs
Renewable Energy Rebate / YES / YES / YES / YES / YES / YES
Other Notable City Programs
Aggregated Solar Purchasing / NO / NO / NO / NO / NO / NO
Green Power Purchase Program / YES / YES / YES / YES / YES / YES

Ann Arbor, MI “Solar Environment” BENCHMARKING & TRACKING DESCRIPTION

The Benchmarking & Tracking Description provides more detailed information with regard to policies and activity status listed in the Matrix. While the Matrix is updated quarterly, new entries are only added to the Description if there has been a change to the existing policy or activity. The date accompanying each entry is the date when that entry was added to this tracking document; not necessarily the date the policy or activity changed.

RULES, REGULATIONS, AND POLICIES

Interconnection Standards

Benchmark - September 30, 2007

City: (NO)

State: (YES) The Michigan Public Service Commission (PSC) adopted interconnection standards for distributed generation (DG) in September 2003. The PSC's rules include definitions, interconnection procedures, technical criteria, project applications, filing fees, interconnection deadlines, the treatment of pre-certified equipment, and waivers. More recently, an October 2007 staff report (U-15113) indicated that the PSC and several utilities had reached a quasi-consensus favoring the adoption of interconnection rules used by Wisconsin. Formal rulemaking to adopt new standards is expected to commence during the summer of 2008 in Docket No. U-15239.
Michigan’s current standards provide for five levels interconnection:

·  Systems less than 30 kilowatts (kW);

·  Systems 30 kW in capacity or greater, but less than 150 kW;

·  Systems 150 kW in capacity or greater, but less than 750 kW;

·  Systems 750 kW in capacity or greater, but less than 2 megawatts (MW); and

·  Systems 2 MW or greater

October 10, 2008 U

State: (YES) In October 2008 Michigan enacted Public Act 295, creating a renewable portfolio standard (RPS) and authorizing the development of a mandatory statewide net metering program. Included in the enabling language for the net metering program is a clause calling for statewide uniform interconnection requirements for net metering eligible generators. Although few additional details are given, the legislation references UL-1741 and IEEE-1547 certification as minimum equipment standards, criteria not included in the existing standards. It is unclear at this point if or how any subsequent rulemaking proceedings will be integrated into the state's existing efforts to improve interconnection procedures.

http://dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=MI02R&state=MI&CurrentPageID=1&RE=1&EE=1

Net Metering

Benchmark - September 30, 2008

City: (NO)

State: (YES) In March 2005, the Michigan Public Service Commission (PSC) approved a consensus agreement that implements a voluntary statewide net-metering program for a minimum of five years. This ruling remains in effect, however, changes may be forthcoming. The PSC currently has an open docket (U-15316) where it is considering the adoption of the federal net metering standards. In addition, an October 2007 staff report (U-15113) indicated that the PSC and several utilities had reached a quasi-consensus favoring the adoption of interconnection rules used by Wisconsin. Under the current rules, the maximum size of electric generators eligible for net metering is less than 30 kilowatts (kW), unless a utility voluntarily sets its limit at less than 150 kW (to match size categories established by the state's interconnection rules).

October 2008 U

State: (YES) In October 2008, Michigan enacted legislation requiring the Michigan Public Service Commission (PSC) to establish a statewide net metering program for renewable-energy systems within 180 days. This program will take the place of the state's current net metering program, which is based on a voluntary consensus agreement between PSC and most of the state's utilities. The rules to be developed by the PSC for the new program will apply to all rate-regulated utilities and all alternative electric suppliers operating in the state. http://dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=MI15R&state=MI&CurrentPageID=1&RE=1&EE=0

Solar Set-Asides in RPS

Benchmark: September 30, 2007

City: (NO)

State: (NO*) While Michigan does not have a solar set-aside in its RPS, the City of Ann Arbor, as part of its community-wide goal of 20% renewable energy by 2015, established the Ann Arbor 5,000 Solar Roofs Initiative (targets solar hot water installations).

Public Benefits Funds

Benchmark: September 30, 2007

City: (NO)

State: (YES) Michigan's statewide public benefits fund, the Low-Income and Energy Efficiency Fund (LIEEF), was authorized by the state's restructuring legislation (Act 141), enacted in June 2000. The purpose of the LIEEF is to provide energy assistance for low-income customers, to provide conservation and efficiency measures to reduce energy use and energy bills of low-income customers, and to promote energy efficiency among all customer classes. Photovoltaics are eligible.

http://dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=MI07R&state=MI&CurrentPageID=1&RE=1&EE=1

Solar Access Laws

City: (NO)

State: (NO)

Solar Mandates in Building Standards

Benchmark: September 30, 2007

City: (NO)

State: (NO*)While Michigan does have energy standards for public buildings (http://dsireusa.org/library/includes/incentivesearch.cfm?Incentive_Code=MI05R&state=MI&currentpageid=2&search=State&EE=1&RE=1) which set energy savings targets of 10% by 2008 and 20% by 2015, solar technologies are not specifically mandated. The Executive Directive No. 2005-4 which set these targets also requires the Department of Management and Budget to ensure that all new construction and renovations of state buildings, including state-leased buildings, strive to score at the LEED Platinum level on the Existing Building, New Construction, and Commercial Interiors scorecards when attainable. For info on Michigan’s state building energy code, see http://dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=MI06R&state=MI&CurrentPageID=1&RE=1&EE=1.

December 30 2008 U

State: (NO*) In October 2008, the Michigan legislature enacted a series of bills addressing several components of the state’s energy markets. Among the enacted laws was Public Act (P.A.) 295, which renewed and revised the state’s commitment to energy efficiency in state facilities that had previously been addressed under several Executive Directives. In the area of state government energy efficiency, P.A. 295 sets a goal of reducing state government grid-based energy purchases 25% by 2015 compared to a 2002 baseline. Although specific details are not identified in the law, the 25% by 2015 grid-based purchases reduction goal may be met with the use of on-site energy generation such as combined heat and power (CHP) or renewable energy generation in addition to energy efficiency improvements, operational changes, or other measures. For more details information, please visit: http://dsireusa.org/library/includes/incentivesearch.cfm?Incentive_Code=MI05R&state=MI&currentpageid=2&search=State&EE=1&RE=1.

Expedited Solar System Permitting

City: (NO)

State: (NO)

Solar in Emergency Preparedness Plan

City: (NO)

State: (NO)

FINANCIAL INCENTIVES

Direct Incentives

Benchmark: September 30, 2007

City: (NO)

State: (YES) Michigan utilities within Wisconsin Public Power, offer $30/sq. ft of collector area (maximum of $3,500 or 35% of project cost, whichever is lower) for solar hot water and heating systems, and $3/kWh for new construction and $2.50/kWh for existing buildings. Available to residential and small commercial customers of all Wisconsin Public Power, Inc. (WPPI) utilities, including these Michigan utilities: Alger Delta CEA, Baraga Electric Utility, Gladstone Power & Light, L'Anse Electric Utility, Negaunee Electric Department, and Norway Power & Light. Customers must reside in the service territory of the participating utility, and the system must be installed on the customer's property. Projects must be approved by the utility before installation. http://dsireusa.org/library/includes/incentivesearch.cfm?Incentive_Code=MI19F&state=MI&currentpageid=2&search=State&EE=1&RE=1