By Madison Merrell
Michigan is looking to move to renewable energy sources as a more sustainable, cost-effective resource, according to the Great Lakes Renewable Energy Association.
That change has a higher upfront cost but has long-term savings and is more sustainable, said John Freeman, the association’s executive director.
People are often deterred from adopting renewable energy sources because they think they have to pay for it all upfront, Freeman said.
Matt Helms, the media contact at the Michigan Public Service Commission, said all energy projects have a large upfront investment, but residential and business customers pay for those projects through rates over time.
Clean energy is cheaper for many reasons, said Freeman, because users are not paying for fuel, only for equipment such as solar panels that capture energy.
The Levelized Cost of Electricity, or LCOE, for wind and solar is consistently lower than for natural gas or coal, according to Carlee Knott, the energy and climate policy manager at the Michigan Environmental Council.
Consumers Energy reports that 14.7% of its electricity is produced from renewable sources, a higher proportion than the 12.8% regional average for Michigan, Illinois, Indiana, Ohio and Wisconsin.
Freeman said that renewable energy costs are significantly lower because companies don’t have to build a new centralized generation source such as a natural gas power plant.
And because renewable energy doesn’t need safety systems and additional equipment to reduce air pollution from coal plants, there are more savings, he said.
Helms said tax credits and government incentives have made the costs for renewable energy projects lower and encourage people to install systems in their homes.
Freeman said he saved $5,000 on a solar system installed at his home because of an investment tax credit.
Erik Nordman, the director of the Institute of Public Utilities at Michigan State University, said wind and solar provide a financial hedge against the price of natural gas.
Substituting clean renewable energy for fossil fuels also reduces air pollution, including greenhouse gases, sulfur dioxide and nitrogen oxides, according to Nordman.
Freeman called renewable energy a practical investment for Michigan’s future that will lower utility costs and create less air pollution.
Renewable energy is often viewed as unreliable in states like Michigan, where weather conditions are inconsistent, said Freeman.
However, new technology can now capture surplus energy and store it for later use through solar battery systems, he said.