ANN ARBOR, Mich. – Ann Arbor is launching a new kind of municipal utility, using locally generated solar power and battery storage to give residents another option for clean energy.
The Ann Arbor Sustainable Energy Utility, or SEU, began its first installations in the city’s Bryant neighborhood this year.
The city plans to expand the optional program across Ann Arbor in 2027.
The SEU is community-owned and designed to supplement the existing electric grid.
How the program works
Under the SEU model, the city finances, owns, installs, and maintains the solar and battery systems. Customers pay a monthly fee based on the size and configuration of the system they select.
The solar power generated at the property can reduce the amount of electricity customers buy from the traditional grid.
The city says most customers are expected to see lower total utility bills, although savings will vary based on energy use, system size, and other factors.
“The residents there are typically saving $100, $200, $300 a year on their DTE bills,” said Shoshannah Lenski, executive director of the Ann Arbor Sustainable Energy Utility. “They save more than that on their bill, and they pay some money to the SEU, so that’s the net or total savings they’re seeing.”
Ann Arbor voters authorized the creation of the SEU in November 2024.
The city describes it as an optional, supplemental municipal utility that provides 100% local, renewable energy.
“It works like a utility in that we own renewable energy assets, we’re generating electricity, and we offer that as a service to residents and businesses and anyone who wants to sign up to receive clean energy from us,” Lenski said.
Battery storage is designed to provide backup power
The solar systems are paired with whole-home batteries.
The batteries store energy generated by the panels and can provide backup power when the traditional grid goes down.
“They get the resilient backup power from a battery, so that during power outages, they can keep their lights on, they can keep the fridge cold and power their essentials,” Lenski said.
Kamar Ali said frequent outages in the Bryant neighborhood were a major reason he enrolled in the program.
His solar panels were installed last month, and he’s currently waiting for them to be activated.
“Usually in our neighborhood, the power constantly goes out, and due to DTE not usually giving us a standard solitary time, it’s hard for us to know when we’re going to have power, because we’ve actually thrown away almost a hundred dollars’ worth of food before,” Ali said.
Citywide expansion planned for 2027
Ann Arbor Mayor Christopher Taylor said the city is preparing to bring solar power to hundreds more homeowners in 2027.
“We have installed batteries and panels in about 100 homes in our Bryant area,” Taylor said. “We’re rolling it out throughout the city. We’re hoping, expecting, planning next year to roll out solar panels and batteries in over 1,000 homes throughout the city of Ann Arbor.”
The city says the SEU will also be available to businesses, rental properties, non-profit organizations, and places of worship.
Since the city owns the equipment and covers upfront installation and maintenance costs, customers are responsible for the monthly utility bill rather than the cost of buying a system outright.
Taylor said the program is an example other communities could consider.
“I would absolutely encourage other cities to do it,” Taylor said. “There is some investment to be sure, but it is sustainable, and it is achievable by communities on their own.”
DTE Energy provided the following statement:
“DTE is dedicated to supporting the City of Ann Arbor’s clean energy goals. Much like DTE’s MIGreenPower — which is one of the largest voluntary programs in the country — the SEU would provide Ann Arbor’s residents and businesses with another option to reduce their own carbon emissions. When coupled with DTE’s planned investments in clean energy, these voluntary, fee-based programs help accelerate economy-wide decarbonization while maintaining reliability and affordability.”
Ann Arbor residents and businesses can express interest through the city’s Sustainable Energy Utility website here.
