Rather than replacing the privately-owned utility that serves Ann Arbor, the plan is for this city agency to run in tandem, offering a supplemental service that residents can opt into.
If they do, they’ll stay connected to the regular grid, but will be outfitted with solar panels, battery backup systems, or other infrastructure, drawing on that power for their home use and opening up the prospect of selling any excess. The city, meanwhile, would pay for the installation and maintenance of these systems, which Ann Arbor would continue to own — a vision of energy generation and storage distributed across the city.
The plan begins in the coming months in Bryant, a 1970s-era community with about 260 homes, many of which are officially considered “energy burdened.” A quarter of residents pay more than a third of their incomes on utilities, in a neighborhood that is one of Ann Arbor’s only areas of unsubsidized affordable housing, according to Derrick Miller, Community Action Network’s executive director.
The SEU is a major step in a yearslong process to address Bryant’s energy affordability and sustainability concerns — and then expand the approach across the city.
“When we started having a conversation about how to decarbonize the neighborhood about four years ago, it felt outlandish. Now, it doesn’t feel like anyone can stop us,” Miller said.
The appeal of the SEU became clear in November 2024, when a ballot measure on the proposal was approved by nearly 80 percent of Ann Arbor voters. A little over a year later, city officials are ready to implement the vision, said SEU Executive Director Shoshannah Lenski.
In late February, the city announced that it was accepting expressions of interest from residents and businesses to take part, accompanied by a flurry of community meetings, animated videos, and ads in local theater playbills.
Customers who opt in will get two utility bills — one for the power supplied by these new city-owned clean energy systems, and one for any power they’re still drawing from the regular grid — which Lenski and her colleagues say will add up to less than they currently pay.
“Just like customers don’t own a power plant, the city owns and finances the system upfront, and they pay for that electricity through a monthly bill,” Lenski said. She noted that the model could prove particularly helpful for renters, who often get left out of green energy incentives. Signing up large multifamily buildings will be important to quickly expand the SEU’s size, she said.
In addition to installing clean energy systems at participants’ homes, the SEU could build its own microgrids, something that would set it apart from other municipal clean energy programs. For instance, the agency could install solar panels on a school to supply power when students and teachers are in the building, and that power could go to other SEU customers when classes are out.
Backers say the strategy allows Ann Arbor to build out its green energy system with lower financial risk — and lower potential for political or industry pushback.
“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,” Ryan Lowry, a spokesperson for DTE Energy, which currently supplies energy to the city, said in an email.
It might seem surprising that DTE, Michigan’s largest electric utility, is supportive of the SEU. But industry experts noted that many investor-owned utilities are struggling under the unprecedented new demands for power. Having a local government try to help manage power needs could be seen as an asset, they suggested — though DTE will have no formal role in the SEU.
So far, more than 1,500 people across Ann Arbor have indicated that they want to sign up. The SEU plans to serve around 100 to 150 customers in Bryant this year, expand out to reach 1,000 next year, and then grow by several thousand annually after that.