Solar farm proposals continue to cause a stir in Northern Michigan communities, now centering on a state grant program that critics say pressures communities into accepting project proposals they might not otherwise pursue.
In 2023, lawmakers approved a climate plan that gives the Michigan Public Service Commission — a governor-appointed state board — the authority to overrule a community’s decision denying a solar or wind development.
Those deals would still be subject to the wishes of property owners looking to sell or lease their private lands — but the input of local government can be effectively sidelined once the MPSC steps in.
That policy also awards local governments $2,000 per megawatt-hour from the developers, if initially denied locally but approved by the state.
Due to a $30 million grant program, local governments stand to bring in substantially more money by approving the projects on first pass.
Those grants, known as Renewables Ready Communities Awards, provide $5,000 per-megawatt hour to local governments, 150% higher than the amount offered if a project is first denied at the municipal level.
“If you don’t accept their solar farm, then the state’s going to come in and do it anyway,” said Rep. Cam Cavitt, (R) 106th District. “So it’s a classic carrot and stick. They offer you the carrot — if you don’t want to take the carrot, then they’re going to hit you with the stick.”
Cavitt says he’s concerned the options don’t leave local governments with many options if a solar or wind project encounters community opposition.
But officials in Northern Michigan communities say they don’t feel they’ve been pressured to approve any proposals based on the different funding options.
“Anybody that had concerns — and I’ve got to be honest, that’s it’s been very few — they’ve generally been had their questions and their concerns answered in a satisfactory manner,” said Michael Rasmussen, supervisor of Day Township in Montcalm County.
Rasmussen says that he hasn’t encountered significant opposition to two solar projects which broke ground this year.
“Every landowner around here was free to either accept this proposal or or deny it,” he said. “So nobody was nobody was forced to do anything.”
Jeff Johnston, public information officer for EGLE, says that the source of the funds provides incentives for developers to earnestly seek local approval — the $5,000 grants for locally approved projects come from taxpayer revenue, while the $2,000 grants for overridden projects is paid by the developer themselves.
He says in a statement that the $5,000 grant program “is specifically intended to add an incentive to both sides of the process, so as to not disincentivize local permitting.”
Johnston also says that the policies incentivize different parties to work together and that “local zoning can be a win-win by which municipalities can host projects that more aptly fit their community and by which developers can avoid the additional time and costs associated with state siting.”
Johnston also notes that the ultimate decision lies with property owners as to whether they want to entertain energy projects to begin with.
