- Newsletter (337)
Welcome to the weekly newsletter of the Michigan Energy Innovation Business Council (Michigan EIBC), the business voice for advanced energy in Michigan. Here’s what’s new this week:
How the IRA Supports Electrification and Efficiency Through Grants and Rebates
This week we continue our deep dive into the many energy-related provisions of the recently passed Inflation Reduction Act. Last week’s newsletter detailed the tax credits related to electrification and efficiency. But the bill also includes several important rebates and grants for electrification and efficiency:
High-Efficiency Electric Home Rebate Program
The IRA funds grants to be given to state agencies and Indian tribes to disburse rebates of not more than $14,000 for qualified electrification projects.
Limits on these rebates include:
- not more than $1,750 for a heat pump water heater
- not more than $8,000 for a heat pump for space heating or cooling; and not more than $840 for an electric stove, cooktop, range, oven or electric heat pump clothes dryer.
- not more than $4,000 for an electric load service center upgrade
- not more than $1,600 for insulation, air sealing, and ventilation
- not more than $2,500 for electric wiring
There are also income limits on households to qualify for a rebate. The rebate will cover:
- 50% of the cost of the qualified electrification project for a household the annual income of which is not less than 80% and not greater than 150% of the area median income
- 100% of the cost of the qualified electrification project for a household the annual income of which is less than 80% of the area median income
- 50% of the cost of the qualified electrification project for a multifamily building not less than 50% of the residents of which are households the annual income of which is not less than 80% and not greater than 150% of the area median income
- 100% of the cost of the qualified electrification project for a multifamily building not less than 50% of the residents of which are households the annual income of which is less than 80% of the area median income
Home Energy Performance-Based, Whole House Rebates
The IRA makes $4.3 billion available through September 30, 2031, to carry out a program to award grants to state energy offices to develop and implement a Home Owner Managing Energy Savings (HOMES) rebate program.
A HOMES rebate program must:
- Use procedures to determine the reductions in home energy use resulting from the implementation of a home energy efficiency retrofit
- Use software techniques as approved by the DOE to measure and verify the efficiency improvements for homes receiving rebates
- Provide a contractor performing a home energy efficiency retrofit or an aggregator who has the right to claim a rebate $200 for each home located in a disadvantaged community
Limits on the rebates include:
- For single-family homes, limited to the lesser of $2,000 or 50% of the project cost if the retrofit achieves modeled energy system savings of between 20% and 35%
- For single-family homes, limited to the lesser of $4,000 or 50% of the project cost if the retrofit achieves modeled energy system savings of not less than 35%
- For the case of a home or portfolio of homes that achieves energy savings of not less than 15%—limited to a payment rate per kilowatt-hour saved, or kilowatt hour-equivalent saved, equal to $2,000 for a 20% reduction of energy use for the average home in the State and 50% of the project cost
- For multifamily building owners, limited to $2,000 per dwelling unit with a maximum of $200,000 per multifamily building if the retrofit achieves modeled energy system savings of between 20% and 35%
- For multifamily building owners, limited to $4,000 per dwelling unit with a maximum of $400,000 per multifamily building if the retrofit achieves modeled energy system savings of not less than 35%
- For the case of a multifamily building or portfolio of multifamily buildings that achieves energy savings of not less than 15%—limited to a payment rate per kilowatt-hour saved, or kilowatt hour-equivalent saved, equal to $2,000 for a 20% reduction of energy use per dwelling unit for the average multifamily building in the State; or 50% of the project cost
- For individuals and aggregators carrying out energy efficiency upgrades of a single-family home occupied by a low- or moderate-income household or a multifamily building not less than 50% of the dwelling units of which are occupied by low- or moderate-income households, limited to $4,000 per single-family home or dwelling unit and 80% of the project cost if the retrofit achieves modeled energy system savings of between 20% and 35%
- For individuals and aggregators carrying out energy efficiency upgrades of a single-family home occupied by a low- or moderate-income household or a multifamily building not less than 50% of the dwelling units of which are occupied by low- or moderate-income households, limited to $8,000 per single-family home or dwelling unit and 80% of the project cost if the retrofit achieves modeled energy system savings of not less than 35%
- For the case of a portfolio of single-family homes occupied by low- or moderate-income households or multifamily buildings not less than 50% of the dwelling units of which are occupied by low- or moderate-income household that achieves energy savings of not less than 15%, limited to a payment rate per kilowatt-hour saved, or kilowatt hour-equivalent saved, equal to $4,000 for a 20% reduction of energy use for the average home in the State or 80% of the project cost
State-Based Home Energy Efficiency Contractor Training Grants
The IRA appropriates $200 million through Sept. 30, 2031 for states to develop and implement programs that provide training and education to contractors involved in the installation of home energy efficiency and electrification improvements.
States may use these funds to reduce the cost of training contractor employees, to provide testing and certification of contractors trained and educated under these state programs, and to partner with nonprofit organizations to develop and implement such a state program.
Assistance for Latest and Zero Building Energy Code Adoption
The IRA appropriates $330 million through Sept. 30, 2029 to assist states and local government units that have the authority to adopt building codes to:
- Adopt a building energy code (or codes) for residential buildings that meets or exceeds the 2021 International Energy Conservation Code or achieves equivalent or greater energy savings
- Adopt a building energy code (or codes) for commercial buildings that meets or exceeds the ANSI/ASHRAE/IES Standard 90.1–2019, or achieves equivalent or greater energy savings
The IRA appropriates $670 million through Sept. 30, 2029 to assist states and local government units that have the authority to adopt building codes to:
- Adopt a building energy code (or codes) for residential and commercial buildings that meets or exceeds the zero energy provisions in the 2021 International Energy Conservation Code or an equivalent stretch code
PILT Bills Receive Michigan Senate Committee Hearing
At a Michigan Senate Energy and Technology Committee hearing on Sept. 7, representatives of renewable energy developers, utilities and local governments all spoke in favor of two pieces of legislation that would allow for payments in lieu of taxes (PILT) for utility-scale solar systems over 2 MW in size.
“This legislation will result in certainty, clarity, and consistency for local communities and the industry,” Michigan EIBC President Laura Sherman said in written testimony provided to the committee.
Amanda Stallings, senior regulatory manager at Michigan EIBC member National Grid Renewables, testified at the hearing. “If enacted,” Stallings said, the bills “would not only give solar developers more assurance in their ability to model future tax responsibilities, but also give local government units the long-term confidence they desire in their budget and operation planning efforts.”
Introduced into the state Senate in July, the bills provide a clear path for solar projects to establish PILTs. This process will provide consistent income to local governments over the 20-year period of the agreement and avoid drawn-out legal fights over the initial valuation of a project for property tax purposes.
Previous legislation on this topic failed due to opposition from local government associations and others, but the long process to draft these bills, involving a lot of stakeholder engagement, has led to a different result.
“This process has been more inclusive” compared to the last one, Judy Allen, representing the Michigan Townships Association, said in testimony at the hearing.
“Michigan EIBC is hopeful that this legislation will result in greater support for solar projects in local communities and increased certainty over the long-term for those communities,” Laura Sherman said in written testimony.
Representatives of DTE and Consumers Energy also testified in support of the bills.
Michigan EIBC Is Hiring: Energy Policy Expert
The Michigan Energy Innovation Business Council (Michigan EIBC) and Institute for Energy Innovation (IEI) are hiring a full-time energy policy expert. Your last chance to apply is 5 pm today!
The chosen candidate’s policy portfolio may include:
- Development of legislative strategy and policies in collaboration with policy team
- Legislative advocacy including meetings with legislators and partners
- Support of advanced energy sector-specific initiatives including research and report writing
- Support of regulatory policy efforts at the Michigan Public Service Commission
- Support of advanced energy sector-specific initiatives, including research and report writing
- Communication and collaboration with members of the advanced energy industry
- Support of sector-specific initiatives and events in collaboration with team
Tickets On Sale for 10th Annual Michigan Energy Innovators Gala
Tickets and sponsorship opportunities are available for the 10th Annual Energy Innovators Gala on Sept. 28 at The Eastern in Detroit! Get your tickets now! Please click here for more sponsorship details and contact Brianna Gerard at email@example.com with any questions.
5:00 pm | Cocktail hour + Networking (open bar + food trucks serving)
5:30 pm | VIP reception (open bar + food trucks serving)
6:00 pm | Keynote Speaker + Awards Program
7:30 pm | Continued Networking + Dessert & Coffee/Tea Bar
8:00 pm | Event Concludes
The Gala’s keynote speaker will be State of Michigan Treasurer Rachael Eubanks. Eubanks was appointed as Michigan’s 47th State Treasurer by Governor Gretchen Whitmer in January of 2019. She is committed to bringing creativity, collaboration, and commitment to identify and implement solutions to some of Michigan’s greatest challenges. She does this while also building upon Treasury’s culture of service to Michiganders, through continuous improvement and employee engagement, which are the foundation of Treasury’s mission to provide fair and efficient financial services on behalf of taxpayers, governments, students, and all Michiganders, for the long-term fiscal health and stability of our state. In 2016 she was appointed by Governor Rick Snyder (and reappointed in 2017) to serve on the Michigan Public Service Commission (MPSC) as a utility regulatory commissioner. In that capacity she reviewed and voted on hundreds of orders that helped shape Michigan’s energy future. In particular, the Commission had regulatory oversight over the implementation of two comprehensive energy law changes during her tenure. She served on several national organizations, including being elected as Vice President to the Organization of PJM States, Inc., and was on the Board of Directors of the National Association of Regulatory Utility Commissioners, where she was Chair of the Supplier and Workforce Development Subcommittee.
Thank you to our sponsors!
Utilidata is a technology company bringing open source distributed artificial intelligence (AI) to the edge of the electric grid to accelerate decarbonization and better serve people.
Utopian Power is a Michigan-based clean energy development company focused on providing localized solutions that fit the needs of our customers and their communities. With a mission statement of “Accelerating renewable energy adoption by providing responsible energy options to communities, be they individuals, businesses, cities, regions, or the world.” Utopian Power offers management and execution of clean energy projects, including consultation, development, finance, design, and construction; with a market focus on municipal, community or utility scale energy developments.
Michigan Energy News
- Gov. Whitmer and the Michigan Economic Development Corporation announce a township infrastructure project that will allow Michigan EIBC member Hemlock Semiconductor to expand its Michigan footprint, creating 170 jobs and up to $375 million in capital investment.
- Governor Whitmer also announces she is directing government agencies to implement provisions of the Inflation Reduction Act, including directing the Michigan Department of Environment, Great Lakes and Energy (EGLE) “to build a plan to help Michiganders utilize federal rebate programs to make energy and home improvements and lower their energy costs.”
- The Michigan Public Service Commission (MPSC) should halt an “obvious ploy by DTE to stop ratepayers from installing their own solar system and therefore stopping a source of free market competition,” Great Lakes Renewable Energy Association Senior Policy Analyst John Richter writes in Bridge magazine.
- The Ann Arbor City Council votes 10-1 to spend about $500,000 to study if it should replace DTE Energy with a city-owned utility.
- Comcast says that new agreements to buy wind and solar energy from Consumers Energy and DTE will allow it to power half of its Michigan operations with renewable energy.
- Michigan EGLE launches an interactive map that shows projects in its Fuel Transformation Program.
National Energy News
- The Midcontinent Independent System Operator (MISO) declares that storage resources are now eligible to participate in MISO’s energy and operating reserve markets.
- USA Today reports on a nationwide push toward public power.
- Renewable energy generation increased to nearly a quarter of U.S. generation in the second quarter of this year, according to the latest U.S. Energy Information Administration data.
- A new California law exempts energy storage from the local zoning process that can add months or years to development timelines.
- Another recently passed California bill that pegs compensation for community solar projects to the actual value of electricity at the time it is delivered to the grid.
- A New Hampshire co-op is planning to offer members a transactive energy rate that pays battery and EV owners for discharging back to the grid.
Attention Michigan EIBC members: if you have a job announcement you would like in the newsletter, please send a paragraph describing the position and a link to apply to Matt Bandyk at firstname.lastname@example.org. Please include in the email a specific end date for the job posting.
5 Lakes Energy
5 Lakes Energy is hiring a Consultant or Senior Consultant (depending on relevant experience and skills) to help advance clean energy policy in the Midwest. As a small, well-respected firm with broad expertise and a range of sought-after practice areas, the Consultant should expect to work on a wide variety of projects in the effort to mitigate climate change and accelerate the clean energy transition, with a focus on analytical modeling to calculate social, economic, and environmental impacts of policies in the energy sector and to move electric utilities to fully decarbonized but reliable and affordable power supply. 5 Lakes Energy works consistently in Michigan but also engages elsewhere across the Midwest and the US.
5 Lakes Energy
5 Lakes Energy is hiring an Expert Consultant to help advance clean energy policy in the Midwest. As a small, well-respected firm with broad expertise and a range of sought-after practice areas, the Expert Consultant should expect to work on a wide variety of projects in the effort to mitigate climate change and accelerate the clean energy transition, with a focus on providing expert advice and testimony in the areas of electric utility cost-of-service and rate design, particularly in relation to the use of clean energy technologies, such as distributed generation, energy storage, heat pumps, and electric vehicles. 5 Lakes Energy works consistently in Michigan but also engages elsewhere across the Midwest and the US.
Michigan and National Energy Events
The 10th Annual Energy Innovators Gala will be held on Sept. 28 at The Eastern in Detroit. Get tickets here.
The Detroit 2030 District will be hosting the 2030 Districts Network International Summit when all twenty-four 2030 Districts come to Detroit on Oct. 4-6. Tickets are available to the public. Click here to register. The Detroit 2030 District is one of twenty-four 2030 Districts across North America. Michigan is the only state with three Districts–Detroit, Ann Arbor and Grand Rapids.
The U.S. Department of Energy’s Solar Energy Technologies Office (SETO) announced the Advancing Equity Through Workforce Partnerships funding opportunity, “which will award $10 million for the development of collaborative workforce programs that will facilitate the rapid deployment of solar energy technologies while supporting an inclusive workforce with opportunities for union membership.” Applicants must file a mandatory letter of intent by Sept. 13.
The DOE issued a Request for Information (RFI) for the $750 million Advanced Energy Manufacturing and Recycling Grant Program. The program aims to support manufacturers to produce clean energy products or deploy emissions reduction equipment at facilities in coal communities. RFI responses are due Sept. 16.
The U.S. Department of Energy’s Community Geothermal Heating and Cooling Design and Deployment Funding Opportunity Announcement (FOA) will award $300,000–$13 million for “projects that help communities design and deploy geothermal district heating and cooling systems, create related workforce training, and identify and address environmental justice concerns.” The application deadline is Oct. 11.
Consumers Energy has developed a draft RFP to solicit up to 700 Zonal Resource Credits (“ZRCs”) of capacity and associated energy and renewable energy credits (“RECs”), if applicable, starting on May 31, 2025. Find the draft RFP documents here. Notices of intent are due Oct. 21.
The Community Collaboration on Climate Change (C4) is seeking a full-time contract position to provide coordination of C4 leadership, organizational representatives, Grand Rapids residents, and the program deliverables.
State of Michigan DNR is going big in solar with projects in the ground, others in development and additional ones being planned. DNR has released a Request for Proposal for Prequalification Program for Renewable Energy PPAs: www.michigan.gov/sigmavss. Use “Guest Access” to get the RFP. A previous round of pre-qualifications netted solar companies that then were able to bid on a portfolio of DNR solar projects in Southwest Michigan. Another portfolio in the Northern Region is in the works for later this year. Only companies who pre-qualify can bid on future DNR solar projects. Please direct all correspondence to the Solicitation Manager, Laura Gyorkos at gyorkosL@michigan.gov.
The Michigan Economic Development Corporation’s PlanetM Testing Grant gives mobility companies the opportunity to access testing facilities around the state, including Mcity at the University of Michigan. Apply here.
Aaron Kurz, a former Michigan EIBC intern and University of Michigan alum, is working to build a state-level Science Policy Fellowship in Michigan, the Michigan Initiative for Science Policy (MISP). This program will place five recent STEM PhD recipients throughout the Michigan state government to provide a source of non-partisan, evidence-based information to decision makers. MISP will join the 10 other state programs throughout the country, including Idaho, Missouri, and New Jersey. Additional information about this initiative may be found at miscipol.org. If you are interested in providing written support for MISP, please contact Aaron at email@example.com.