DTE Energy Co. has issued a request for proposals for
multiple solar-generating plants in Southeast Michigan that would range in size
from 5 megawatts to 50 megawatts.
Companies or individuals would propose to build the solar
power generation plants and DTE would reimburse their costs. To offset its
costs, DTE would own the solar stations and sell subscriptions to customers who
would receive credits on monthly bills, said David Harwood, DTE’s director of
renewable energy.
The energy produced from the solar plants would feed
directly into the grid -- builders would not get direct access it. But
organizations interested in supporting solar by volunteering to build the
facilities in Michigan ultimately would not have to shoulder the costs under
this program because they would be reimbursed for their costs, Harwood said.
Harwood said this model “opens door to thousands of
customers because some don’t own a roof” on which to build a solar system. The
amount of the credit they would receive must first be approved by the Michigan
Public Service Commission, he said.
Notices of intent to bid for DTE’s solar projects are due
July 22. Bids are due about two weeks later with project selections this fall.
The solar projects must be completed by Dec. 31, 2016, to be eligible for
federal solar energy tax credits, which substantially defrays costs, Harwood
said.
Over the past year, DTE studied its own experience with
solar power generation and concluded that large solar projects are more
cost-effective than smaller residential or business-owned rooftop solar units.
“We feel very strongly there is a huge economy of scale with
large utility-owned assets,” Harwood said. “Customers could subscribe to these
programs at the same size as they would be built on their home. The utility
would take the responsibility of owning a system.”
DTE has not set a target for the total number of megawatts
it wants generated by the voluntary solar program or how many facilities will
be built.
“The size and amount will be determined by responses, by
bids, the price points and consumer demand,” Harwood said. “We are not going to
overbuild.”
Harwood said DTE plans to create a voluntary community
renewable energy program for customers, which is expected to include additional
wind farms.
“We want to start with solar and potentially offer wind in
the program later,” he said.
DTE’s voluntary program would generate power beyond the 10
percent renewable energy required by the state’s 2008 renewable energy law, PA
295. DTE recently announced it has met the 10 percent renewable power
generation threshold, which utilities are mandated by the law to reach by the
end of this year.
Michigan legislators are debating whether to continue or
extend the renewable energy mandate another five years. However, Republican
legislators appear more in favor of allowing utilities to voluntarily invest in
renewable energy under a free market approach.
Earlier this year, Jackson-based Consumers Energy Co. received
state approval to begin a 10-megawatt community solar program. Called Solar
Gardens, the solar program could begin this year and produce electricity in
2016.
Under Consumers' Solar Gardens project, individual and
business electric customers could purchase subscriptions in 0.5 kilowatts
blocks, which could cost $28 to $41 per block.
Participants then would receive a bill credit — estimated
by Consumers to be about $9.25 per month in 2016 — over 25 years
based on their investment and the amount of electricity generated by the solar
installation.
The average Michigan electric residential customer uses
about 700 kilowatt hours per month, which costs about $100.
Solar power represents a small amount of the total of
renewable energy generated in Michigan. For example, DTE expects to produce
about 2 percent of its state-mandated 10 percent renewable energy production
through solar. Consumers projects less, about 1 percent renewable energy from
solar.
Since 2008, Consumers Energy generates about 850 megawatts
of renewable energy power, the vast majority coming from wind turbines. DTE
will produce about 950 megawatts of renewable energy by the end of 2015 also
primarily from wind power.
Over the past five years, DTE has invested more than $2
billion in renewable energy, including $50 million in solar energy. It has
built and operates more than 20 large solar installations, including facilities
at Ford Motor Co. headquarters in Dearborn and Monroe County
Community College.
Land owners with a minimum of 20 acres who are interested in
hosting a DTE solar project or those interested in learning details about the
facility can email renewsuppliers@dteenergy.com
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