U.S. Secretary of Energy Jennifer Granholm to visit Detroit
On June 19, 2023, U.S. Energy Secretary Jennifer Granholm will have a conversation with The Detroit Free Press Breakfast Club on the future of clean energy and our economy, including the thousands of jobs created thanks to President Biden’s Investing in America agenda. Concluding that event, the Secretary will celebrate Juneteenth at the Charles H. Wright Museum of African American History in Detroit. She will explore key exhibitions of the museum and delve into The Wright’s rich culture and essential work dedicated to climate justice and sustainability.
Strengthening Michigan’s Economy
In 2021, there were already 393,207 Michigan workers employed in the energy sector.
In the Detroit metro area, over 70% of the electric power generation workforce was in wind, solar, and hydroelectric, and over 40,000 workers were employed in energy efficiency.
The Inflation Reduction Act will expand these opportunities, bringing an estimated $8.3 billion of investment in large-scale clean power generation and storage to Michigan between now and 2030.
Michigan is home to over 900,000 small businesses, representing 99.6% of all businesses and employing 47.9% of all workers in the state, and the Inflation Reduction Act will help them save money. Commercial building owners can receive a tax credit up to $5 per square foot to support energy efficiency improvements that deliver lower utility bills. Other programs that will benefit small businesses include tax credits covering 30% of the costs of installing low-cost solar power and of purchasing clean trucks and vans for commercial fleets.
Clean Energy Investment
Michigan has an ambitious statewide goal of economy-wide carbon neutrality by 2050.
Currently, Michigan has over 3.7 GW of solar, wind, and storage capacity. There is an additional 800 MW of additional planned wind and solar capacity in the works in Michigan, enough to power almost 80,000 Michigan homes.
IRA tax credits that encourage investment in wind and solar will help reduce energy costs, as the costs of solar and wind power are projected to drop by 33% and 22% respectively, over the next 30 years in the Detroit area.
Since the start of the Biden Administration, we have tracked more than $100 billion in new battery supply chain investment announcements, including $17 billion in Michigan. These new investments will produce over 168 GWh of battery cell capacity and create over 12,000 new jobs in the state.
Detroit has 334 electric vehicle charging stations, meaning that there are more than two chargers per square mile. Michigan will also receive over $23 million in federal funding from the Bipartisan Infrastructure Law to help build out its EV charging network even further.
In 2022, there were already 52,500 electric vehicles registered in Michigan, a 51% increase from the 34,700 vehicles in 2021. Drivers switching to an electric pickup truck could save over $1700 per year in fueling and maintenance costs compared to a gasoline-powered truck. Drivers of smaller cars could save over $1200 per year. The Inflation Reduction Act will make it easier and cheaper to purchase an electric vehicle, with upfront discounts up to $7,500 for new EVs and $4,000 for used EVs, helping many Americans skip the gas pump and save on fuel costs.
Investing In Michigan’s Communities
Thanks to funding from President Biden’s Investing in America Agenda, the U.S. Department of Energy has made available more than $231 million in the past year to Michigan’s state and local governments to invest in energy efficiency and grid resilience. This includes administrative funding to build a robust rebate program to help low-income households access more efficiency appliances, over $7 million to help strengthen grid resilience, and a massive $183 million increase in the state’s weatherization program funding.
Michigan Tech University has also received an $8 million grant for battery recycling research.
Saving Michiganders Money on Home Energy Bills
DOE’s Weatherization Assistance Program and State Energy Program have invested more than $148 million in Michigan since 2015, leading to 996 jobs and over 11,200 homes with reduced energy costs and improved health and safety.
Michigan will receive over $211 million to implement a Home Energy Rebate program in the state. Low-income households in Wayne county could save an average of 43% on their home energy bills when they upgrade their appliances and improve energy efficiency through this program.
IRA also includes grants to help state and local governments adopt the latest building energy codes, which would save the average new homeowner in Michigan 10.7% on their utility bills. That amounts to $337 per year.
Prioritizing Michigan’s Underserved Communities
The Biden Administration has committed to advancing equity for all communities, including through the Justice40 Initiative, which aims to ensure Federal agencies deliver at least 40% of the overall benefits of climate, clean energy, affordable and sustainable housing, clean water, and other investments to disadvantaged communities. DOE has more than 140 programs covered by this initiative.
In Highland Park, Michigan, an established coalition of community-based organizations and the city is working with DOE’s Communities Local Energy Action Program (LEAP) program to accomplish their community’s vision for a clean, efficient, and resilient energy future.
The North End Woodward Community Coalition in Detroit, MI, was selected in the first round of the Community Power Accelerator Prize, which seeks to expand access to community solar. They are now competing for a share of a larger prize that will fund further progress toward their goals of improved access, greater household savings, resilience and grid benefits, community ownership, and equitable workforce development.
Ann Arbor, Michigan, is participating in a DOE-sponsored peer learning cohort that will help cities deploy new financing strategies for a more equitable energy future.
For current DOE funding opportunities, visit: www.energy.gov/infrastructure