State grants turn large-scale solar, wind projects into local windfalls

By Shaina Sternhell
Capital News Service

LANSING — Michigan’s Renewables Ready Communities Awards provide extra funding to encourage local governments to approve large-scale renewable energy projects, and recipients use the money for local improvements such as park upgrades and road repairs.

Ian O’Leary, a program manager with the Department of Environment, Great Lakes, and Energy, said the state releases the funds to local officials once project construction begins.

Eligible developments include large-scale wind, solar, battery storage and hybrid facilities, according to the department.

The program sets minimum capacity requirements for eligibility. For solar developments, 50 megawatts of generating capacity corresponds to roughly 400 acres, O’Leary said.

Under the program, local governments can receive up to $4,000 per megawatt, with the potential for $5,000 per megawatt if developers meet labor-agreement requirements, according to the department.

“The main goal of the awards is to increase the value that local governments see in permitting large-scale renewable energy,” O’Leary said.

Unlocking capital for local priorities

Because private companies often develop these projects on land leased from private owners, local governments sometimes receive little direct revenue from approving them, O’Leary said.

Once construction starts, local governments may use the funds as they choose, O’Leary said. Approved uses include town hall repairs, recreation projects, cemetery upgrades and zoning software purchases.

So far, 57 municipalities have been approved for awards.

Among them are the city of Trenton; Lee Township in Midland County; Pulawski Township in Presque Isle County; Evergreen Township in Montcalm County; Raisin Township in Lenawee County; Hart Township in Oceana County; Baldwin Township in Delta County; Sands Township in Marquette County; and Grout Township in Gladwin County, according to the department's website.

Impact on rural budgets, infrastructure

Hart Township Supervisor Abe Kurzer said the $600,000 award has allowed his rural township to fund projects that were previously out of reach.

“Being a rural township, we don’t have a significant tax revenue to improve infrastructure or for road upkeep,” Kurzer said. “The award definitely helps us with some projects we haven’t had funding for previously.”

The township used part of the money to revise its master plan and zoning ordinance, as well as repair roads neglected due to tight budgets, Kurzer said.

The project has also generated tax revenue through personal property taxes paid by the solar developer, he added.

“The award itself is more than our entire yearly budget, and the tax revenue adds an amount that is just under half our yearly budget for the next six years or so,” Kurzer said. “That is an incredible amount of money we wouldn’t normally have to improve things in Hart Township.”

Navigating community mixed reactions

Residents hold mixed views on the solar farm, Kurzer said.

Participating landowners welcome the lease income, but some neighbors have complained about the visual impact of the panels and fencing. Some adjacent property owners have also reported difficulty selling their land, he said.

In Marquette County, Sands Township will receive $748,500 tied to the Superior Solar project, a 150-megawatt solar farm.

The funds will help accelerate projects in the township’s master and recreation plans, Supervisor Darlene Walch said.

“Without the funds, project timelines extend further into the future,” Walch said.

The township plans to spend the money on upgrades at Strawberry Lake Park, including building renovations, accessible restrooms, a hiking trail, parking improvements and an accessible walkway.

Sands Township also plans to build a nature trail, remove invasive species and establish a community commons facility featuring meeting spaces, restrooms and audio-visual equipment, Walch said.

“The project is just getting underway, so thus far it has had minimal impact economically,” she said.

While most residents support the project, some remain opposed, Walch said.

Controversy surrounding solar in Ottawa

As Michigan pushes to accelerate utility-scale clean energy through state financial incentives, Ottawa County has emerged as a central battleground over local land use, agricultural preservation, and state authority.

At the heart of the debate is the Silver Maple Solar project, a proposed 200-megawatt solar facility spanning roughly 1,900 acres across Zeeland and Jamestown townships. Developed by RWE Americas, the massive installation represents the exact scale of renewable development targeted by the state's Renewables Ready Communities Awards, which offer local municipalities up to $5,000 per megawatt in grant funding once construction begins.

For host communities, a project of Silver Maple’s size could unlock up to $1 million in state funding for local infrastructure, public parks and municipal services.

However, the prospect of state grant dollars and new personal property tax revenue has done little to quell local resistance. Facing opposition from residents concerned about farmland loss, property values, and rural character, township officials refused local zoning approvals. In response, the developer utilized a controversial 2023 state law that grants the Michigan Public Service Commission (MPSC) ultimate authority to approve large-scale wind and solar projects if local municipalities decline or delay permits.

Zeeland Township, joined by grassroots citizen groups and adjacent landowners, launched legal actions in both the MPSC and Ottawa County Circuit Court to challenge the project and defend local control.

The ongoing standoff highlights the sharp tension built into Michigan's renewable policy: While state incentives aim to reward communities that host clean energy, state pre-emption laws can leave residents feeling sidelined in decisions that reshape their local landscapes.

Statewide economic, regulatory shift

Renewable energy incentives are already delivering positive results for local governments, said Tom Lenard, state director for Climate Power, an environmental advocacy group.

“From Delhi Township’s perspective, we’ve benefited from the solar options” in federal law, and “it’s been very positive for us,” said Lenard, who also serves as treasurer of Delhi Township.

Laura Sherman, president of the Michigan Energy Innovation Business Council, said the program offers small communities substantial funding for local priorities.

“For smaller towns and townships, that can mean hundreds of thousands of dollars, or even more than a million dollars, to invest in local infrastructure, public services, parks or improvements that could help lower costs for municipalities and residents,” Sherman said.

Programs like the Renewables Ready Communities Awards help residents directly see the benefits of clean energy, said Michael Larson, interim executive director of the Citizens Utility Board and a member of the Marquette City Commission.

“When communities host major energy projects, residents should see real economic benefits from those investments,” Larson said. “Programs like Renewables Ready Communities can help local improvements, support community priorities and bring resources to smaller communities that might otherwise struggle to pay for those improvements.”

O’Leary noted that the program represents a shift in how large renewable projects are permitted in Michigan, following a 2023 law that established a state-level permitting pathway for large projects when local approval is withheld.

Walch said the award program gives residents a tangible look at the benefits as construction proceeds.

“We’ve shared progress on the project with residents via our semiannual newsletter and website,” Walch said. “The most important thing for people to understand is that we have not yet received the funds because they are released to coincide with the energy project’s construction.”

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