Federal rebate to save Michigan township millions of dollars on ‘sexy’ solar project

Delhi Township is using federal clean energy incentives from the Inflation Reduction Act to turn sunlight into savings, fund infrastructure upgrades, and embrace a greener future. 

LANSING—Tracy Miller, the supervisor of Delhi Township, just a few miles southeast of Lansing, admits it can be hard to make infrastructure repairs sound exciting for local residents.

But when those fixes come along new solar panels, a $1 million rebate from the federal government, and the promise of millions of dollars in future savings for local taxpayers, the story starts to sound a little more intriguing—or as Miller puts it, “sexy, in a roundabout sort of way.”

Here’s the deal:

The mid-Michigan township of about 30,000 residents is working this year to install several solar panels at six different facilities this year—including at its local senior and community centers. 

That also comes with infrastructure repairs, like new roofing and freshly paved parking lots.

And with financial support provided through the Inflation Reduction Act and the promise of long-term energy savings, the project isn’t expected to cost the township a dime.

“Our township board and I are always looking for opportunities to be more conscientious about our energy,” Miller told The ‘Gander. “It’s a constant consideration for us. Sometimes it works. Sometimes it doesn’t. Sometimes it can be cost prohibitive. … And as far as solar goes, this really only made financial sense for us once the Inflation Reduction Act rebates came into play.”

Here’s the plan:

Some of the new solar panels will go on the roofs of existing buildings, like the lift stations on Waverly and Eifert roads, the treatment lagoons on McCue Road, and the Department of Public Works maintenance building—some of which are in desperate need of repair, Miller said.

Others will be put up on newly constructed carports at the Sam Corey Senior Center and the Delhi Township Community Services Center, which also doubles as the local township library.

All told, the project will earn the township a $1 million rebate from the Inflation Reduction Act, as well as lower its annual electricity costs by an estimated $2.7 million over the next decade. And because of the federal incentives, the township ultimately expects to break even on the project.

“We’ve been evaluating this for a number of years and I could never make the numbers work,” Miller said. “It would come close, but it wasn’t a savings. It was an expense. This rebate really pushed it over the edge. Now, it’s a wash. Without the rebate, it just wouldn’t have worked out.”

But that’s not all:

Miller said the upcoming roofing repairs and parking lot improvements would’ve needed to be finished regardless of whether the township was pursuing cleaner forms of renewable energy.

By using the federal rebate to cover the cost of the work, it’ll free up cash in the township budget for other essential services and flashier projects—like new outdoor amenities for local residents.

“We’re not going to have to use general fund revenue to pay for boring things like parking lots,” Miller said. “That frees up money for other stuff that residents get excited about—like parks and recreation. It’s hard to make this a real sexy project, but it kind of is, in a roundabout way.”

And of course, the practical benefits of having covered parking for local residents visiting the township facilities—particularly in the winter months—cannot be overstated, Miller added.

“This project is a big win for the township,” Miller said.

What’s next?

The project in Delhi Township helps underscore the significance of federal programs like the Inflation Reduction Act in making clean energy accessible and affordable for local governments, as well as luring in billions of dollars in investments and creating thousands of jobs in Michigan.

But with President-Elect Donald Trump threatening to repeal many of the federal incentives that support the adoption of clean energy, Miller isn’t so certain that the momentum can continue.

The township is also interested in pursuing additional ways to reduce its carbon footprint over the coming years—but will only consider projects where the costs make sense, Miller said.

“Without the Inflation Act Reduction rebate, this project didn’t make financial sense. We wouldn’t have done it,” Miller said. “That’s the implication, right? We’re just not going to do these things.”

READ MORE: Michigan family slashes electric bills with new rooftop solar array

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