The Niles, Mich., City Council has approved agreements for a 10-megawatt solar project and 8.75-megawatt battery storage system.
Michigan law requires all electric providers, including municipal utilities like Niles Utilities, to reach 50% renewable energy by 2030 and 60% by 2035.
Compliance is tracked through Renewable Energy Credits. Utilities must either produce renewable energy and receive those credits or purchase the credits from someone else.
As the requirement rises from 15% to 50%, demand for those credits will rise too, potentially making them much more expensive, Niles Mayor Nick Shelton noted in a Facebook post.
“In plain terms, this wasn’t the City deciding it simply wanted a solar farm. The state gave us a requirement and a deadline. Whether we like that mandate or not, ignoring it isn’t an option. Our job is to meet it in the smartest and most affordable way possible,” he wrote.
“Approving this project does not automatically increase electric rates. After reviewing the available options, our utilities team determined this was the most cost-effective way to meet the mandate and stabilize long-term costs for Niles Utilities customers,” Shelton wrote.
