Michigan Clean Energy Business Supply Chain
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2019 Update Michigan Clean Energy Business Supply Chain: Good for Manufacturing Jobs, Good for Economic Growth, and Good for Our Environment Michigans’s Clean Energy Supply Chain Report Findings At A Glance: The Environmental Law & Policy Center identified 316 companies in Michigan that are engaged in the clean energy industry supply chain. Many of these companies serve both the wind and solar industries, and many companies perform multiple roles as part of the interconnected clean energy economy. The numbers below incorporate that overlap of services. 249 Michigan companies are engaged in the solar energy industry supply chain 137 Michigan companies are engaged in the wind energy industry supply chain Michigan clean energy businesses play a wide range of roles in the supply chain including: 152 Manufacturers that build or assemble clean energy equipment or key components for solar energy, wind power, and/or energy storage. 103 Contractors/Installers that install, maintain, or repair clean energy equipment and physical systems. 170 Professional Services/Other that provide essential professional services to support clean energy deployment, including design, finance, legal, insurance, tax, communications, and marketing; also includes alternative retail electric suppliers. Smart policies, technological innovations, and declining costs have accelerated Michigan’s robust clean energy economy. To ensure continued growth in the renewable energy sector, Michigan should: 1. Pass legislation and adopt regulatory standards to accelerate distributed solar projects, including rooftop and community solar installations, by providing fair compensation from electric utilities and other incentives. 2. Require electric utilities to fully and fairly consider clean energy resources, such as solar, storage, wind, and energy efficiency, when developing their long-term plans to meet future electricity demands. 3. Adopt standards to support renewable energy projects that suit community needs, including shared solar, low-income solar, and integration with other land uses like agriculture, pollinator plants, and water quality buffers. Table of Contents Michigan’s Clean Energy Economy ...................................................................1 Clean Energy Policy Landscape .........................................................................2 Recommendations & Next Steps .......................................................................5 Clean Energy Sector Spotlights .........................................................................10 Solar Energy ............................................................................................11 Wind Energy ............................................................................................15 2019 Michigan Clean Energy Business Directory .............................................19 Authors Margrethe Kearney, Angel Rodriguez, Policy Intern Senior Attorney Ariel Salmon, Policy Intern Lena Reynolds, Samantha VanDyke, Policy Intern Communications Writer Meghan Ward, Communications Intern Lucas Stephens, Nora Zacharski, Communications Intern Senior Research Analyst Designer Contributors Steve Connell, Steve Connell Graphics Paul Dailing, Media Relations Specialist Data providers Brad Klein, American Wind Energy Association Senior Attorney Energy Sage Howard Learner, The Michigan Department of Licensing and President & Executive Director Regulatory Affairs Mary McClelland, Momentum Technologies LLC Director of Communications The U.S. Department of Energy’s Office of Interns Energy Efficiency & Renewable Energy Isabel Abbott, Policy Intern Solar Energy Industries Association Margaret Allen, Policy Intern Solar Reviews Jack Jordan, Policy Intern Isa Kaminsky, Policy Intern The National Renewable Energy Laboratory Tatiana Krzesicki, Policy Intern U.S. Geological Survey © November 2019. All rights reserved. Full reproduction permitted. This report is available at ELPC.org. ELPC requests acknowledgement, in print, on any information or excerpts reproduced in another publication. Important: The information contained in this document is for general guidance only, and with the understanding that ELPC is not providing any specific legal, accounting, tax, or other professional advice. Front cover photo credits: Solar Up, Hancock. Peninsula Solar, Marquette. Heritage Sustainable Energy, Traverse City. J. Ranck Electric, Mount Pleasant. Back cover credits: J. Ranck Electric, Mount Pleasant, Heritage Sustainable Energy, Traverse City. Harvest Solar, Jackson. Michigan’s Clean Energy Economy Smart energy policies and economic development are making Michigan a hub in the growing clean energy economy. This report highlights 316 local companies that are accelerating solar energy and wind power in Michigan. The growing clean energy economy encompasses opportunities to Michigan companies while helping companies and communities of many types across to reduce pollution. Communities of all sorts – rural, Michigan. In this report, we focus on wind and solar suburban, and urban – benefit when local businesses power in particular. We recognize that Michigan’s supply growing clean energy markets, and we all clean energy economy also includes jobs in energy benefit from better environmental quality and public storage, geothermal energy, hydroelectric power, health. According to Clean Jobs Midwest, wind and energy efficiency, and many other related industries solar businesses employ more than 9,500 renewable and services. Many companies perform multiple roles energy workers in Michigan. to support both the wind and solar energy industries as part of the interconnected clean energy economy. Michigan can and should be a leader in advancing the Midwest’s clean energy economy. State government Clean energy supply chain businesses include: is actively accelerating new and existing policies to • Manufacturers: Companies that build or assemble promote renewable energy deployment. Consumers clean energy equipment or key components for Energy, Michigan’s second largest utility, is moving solar and wind energy industries. forward with a plan to build 5,000 megawatts (MW) • Developers/Designers/Contractors/Installers: of solar by 2030. Municipalities, businesses, and Companies that initiate, design, or coordinate universities are pledging to power their operations clean energy projects, including architectural and using clean, renewable energy. As the public engineering design and technical consultants. They commitment to renewable energy grows, Michigan install, maintain, or repair clean energy equipment can maximize its benefits by supporting projects and physical systems. located within the state. • Professional Services/Other: Companies that provide essential professional services to support Michigan’s policymakers should guide the state clean energy deployment, including design, in transitioning from old coal plants to more new finance, legal, insurance, tax, communications, renewable energy technologies. State leaders have and marketing. recently taken some initial steps to strengthen clean energy growth, but more work needs to be done. Wind and solar energy businesses are located in all 14 Michigan’s clean energy economy will benefit from Congressional districts, in all 38 State Senate districts, a robust and stable policy framework to accelerate and in 91 of the 110 State House districts. New clean solar power, energy storage, and wind power energy technologies and services provide growth resources. Hemlock Semiconductor, Hemlock 1 Clean Energy Policy Landscape Strong supportive federal and state policies are vital to encouraging investment in renewable energy industries. Michigan is poised to become a clean energy leader, thereby creating jobs, economic growth, and environmental benefits. Michigan’s Renewable Energy History Michigan has a long history of innovation, helping costs are calculated under the Public Utility to drive the region’s economic growth through Regulatory Policies Act (PURPA), which resulted in manufacturing and invention in the 19th and 20th thousands of MWs of solar energy projects in utility centuries. One of the world’s first hydroelectric interconnection queues. This growth demonstrates power plants began operation in 1880 in Grand the economic viability of solar energy in Michigan, Rapids, running 16 streetlamps from the Wolverine and it encouraged Consumers Energy to propose its Chair and Furniture Company’s water turbine. Many own plan for developing 5,000 MW of solar projects hydroelectric projects followed across the state. by 2030. Wind and solar power have grown rapidly since the start of the 21st century. The state’s first renewable Michigan’s Policies & Programs portfolio standard (RPS) passed in 2008, requiring Strong, modern renewable energy policies should utilities to obtain 10% of their electricity from reflect technological innovation and help remove renewable energy resources by 2015. This first RPS regulatory barriers to accelerate renewable energy resulted in 1,500 MW of new renewable energy in development. Michigan. Renewable Electricity Standard Michigan’s clean energy economy received a The Renewable Electricity Standard, also known as boost from legislation passed in 2016. Public Act the Renewable Portfolio Standard (RPS), requires that 432 improved the state’s RPS from 10% to 15% a minimum percentage of the utilities’ energy supply and added an aspirational target of 35%. The be provided by clean renewable resources like wind 2016 energy legislation also