Solar projects:
bring significant support to the community by paying its share of taxes. see more/see less
According to the Graham Sustainability Institute at the University of Michigan, Large-scale solar farms provide substantial economic benefits to rural communities by generating stable, long-term tax revenue. This consistent income helps municipalities, counties, and school districts fund essential public services without placing the tax burden on individual residents.
The university has developed a Solar Property Tax Calculator. Taxing authorities and individuals can enter relevant data into the form to estimate the increase in tax revenue a project may bring.
Like other properties, these projects pay taxes to local government units, including towns, schools, libraries, and others. Energy property taxes are usually much higher than farmland taxes, though the size of the difference depends on state tax laws. Large-scale wind and solar projects are typically taxed in one of two ways: ad valorem (based on land and equipment value, taxed at local rates) or as a Payment in Lieu of Taxes or PILOT (often a flat rate tied to the project’s electricity production capacity).
State policymakers determine which tax system applies and how it is implemented, balancing the trade-offs between lower taxes to attract developers and higher taxes to benefit host communities. These policies—from the broad structures to the tiny details—shape the size and distribution of tax payments over a project’s 20- to 40-year lifespan. Sometimes units like counties and schools may be affected differently, and some local residents may benefit more than others. Policymakers must also plan for decommissioning to prevent “boom/ bust” revenue cycles that can occur when major taxpayers enter and exit. With many of these policies newly established, state and local officials are still learning their applications and impacts.
In Michigan, residential owned, smaller scale solar, would contribute to the tax base when the property changes hands and is re-assessed in its value. Such systems still provide all the benefits below to the community as soon as they are put into service.
lower the cost of electricity for everyone. see more/see less
Solar is the least expensive method of generating electricity.
Solar generates electricity during peak energy use times. Without solar, normally idle "peaker plants" (often gas fired) kick on when demand is high to fill the gap in demand. Peaker plants are much more expensive to operate, since they incur around the clock maintenance costs in order to be in a constant state of readiness. With solar adding available capacity at peak usage times, utilities need to rely on peaker plants less thereby reducing costs to the consumer. Solar with battery storage peaker plants reduces operating costs even further.
keep local energy dollars working in our State. see more/see less
Michigan imports 80% of the energy it needs. It arrives here on trains loaded with coal or crude oil, in buried, high pressure, gas pipelines or by powerlines carrying electricity from other nearby States. When we produce energy locally, those dollars stay here, working in our own communities. If Michigan expands renewables, it could become a net exporter of energy and actually bring dollars in from out of State, like Ohio and Pennsylvannia currently are doing with their fossil resources.
improve the air, water and soil health of our State. see more/see less
Many folks don't realize that the primary source of mercury pollution in our soil and waterways comes from past and continued operation of coal fired power plants (from within Michigan and from States upwind of us). Particulate matter from all fossil fuel generation results in significant damage to our health and the health of our envrionment. Even coal dust flying off coal cars passing by presents a threat.