Everyone should have access to safe and affordable energy, which is why access to solar and clean energy is central to the Michigan NAACP’s energy and climate justice program. But right now, unnecessary limits on rooftop solar have the potential to make solar inaccessible to all Michiganders.
For too long, the traditional electric utility model of large, centralized fossil fuel plants has placed disproportionate environmental and economic burdens on communities of color and low-income communities. More African Americans live near oil and gas power plants than any other demographic group in the U.S. As a result, African Americans are more likely to suffer from asthma, lung cancer and other diseases from exposure to these facilities as noted in NAACP’s Fumes Across the Fence-Line study.
That’s why clean energy isn’t just an environmental issue — it’s a civil rights issue. Denying the rights of Michigan families to choose solar means putting corporate greed over the physical, environmental, and economic health of our communities.
But that’s not what DTE and Consumers will tell you. Instead, the utilities are hiding behind arguments that are disingenuous, false, or both. Namely the utilities claim rooftop solar customers are subsidized by non-solar customers and rooftop solar is inaccessible to many low-income customers.
But let’s set the record straight. There is no subsidy for rooftop solar customers in Michigan. In 2016, the Michigan Legislature required the Michigan Public Service Commission to establish a new “cost-of-service”-based distributed generation tariff. As a result, by law, the Commission cannot approve rates for rooftop solar that result in a subsidy — solar customers must be paying their fair share. No customers — low-income or otherwise — are subsidizing solar users. It’s simply not how this works.
Michigan customers are losing their ability to install rooftop solar thanks to an outdated law that established a one percent limit on rooftop solar in Michigan. Unless legislators change this, utility customers will continue to lose access to the distributed generation program; a policy that lets solar customers earn fair credit for the excess solar electricity they deliver to the grid for local use
Currently, the Michigan House is considering a bill to remove the cap on the distributed generation program and allow all Michiganders the opportunity to take advantage of rooftop solar.
Why are DTE and Consumers Energy working so hard to block solar as an option for customers?
Utilities make a guaranteed profit from building new power plants, like big natural gas plants and pipelines. They want to maximize profits by reducing competition and controlling the market. When customers generate their own energy, DTE and Consumers lose money.
In fact, the cost of solar continues to decline precipitously making it more accessible now than ever. And that’s the problem. The utilities don’t want everyone to have access to rooftop solar because it cuts into their profits.
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Instead of keeping power in the hands of billion-dollar utilities, Michigan NAACP’s energy and climate justice program envisions a future where everyone can participate in and benefit from the clean energy economy — and the potential is huge. The median wage in green energy is 13 percent higher than average economy-wide. We should foster jobs in this growing industry rather than stifle it.
As state legislators weigh their decision on HB 4236, we urge them to consider how their voice will shape the future of energy justice in Michigan. Removing the cap on the distributed generation program will give solar customers in all of Michigan’s communities the opportunity to share in the solar economy.
Jeremy Orr is a civil rights and environmental lawyer who serves as the chairperson of Environmental & Climate Justice for the Michigan NAACP.