Detroit’s Neighborhood Solar Initiative is transforming vacant, blighted land into clean energy production sites to power municipal buildings and fight climate change. Spearheaded by Mayor Mike Duggan, the initiative aligns with the city’s broader sustainability goals to offset 100% of municipal energy usage with renewable sources, addressing greenhouse gas emissions from city buildings.
Watch Mayor Duggan's Solar Speech
Project Highlights:
- Solar Energy Output: The initiative will generate 31 megawatts of solar energy (21 MW in Phase 1 and 9.58 MW expected in Phase 2) to power 127 city buildings, including City Hall, police and fire stations, recreation centers, health clinics, transit centers, and more. The city will maintain the RECs (Renewable Energy Credits) for the project.
- Land Use: A total of 165 acres of vacant land is targeted to host solar arrays, repurposing blighted areas while incorporating landscaping enhancements such as decorative fencing, ornamental trees, flower meadows, and urban agriculture.
- Community Benefits: Homeowners near solar sites receive energy efficiency upgrades, offering tangible improvements for residents.
Progress and Milestones:
Phase 1:
The first three neighborhoods selected to host solar arrays were announced on June 24:
- Gratiot-Findlay
- Van Dyke/Lynch
- State Fair
By December, all Phase 1 neighborhoods finalized agreements with developers and approved landscape designs that enhance the areas with greenery and community-focused features.
Phase 2:
Mayor Duggan recently announced two additional neighborhoods chosen to join the initiative through a competitive selection process:
- Greenfield Park/I-75/McNichols: 42.6 acres of solar arrays, 9 relocation homeowners, and 36 community benefit homeowners receiving $25,000 each in energy efficiency upgrades.
- Houston Whittier/Hayes: 18.7 acres of solar arrays, 2 relocation homeowners, and 70 community benefit homeowners receiving $15,000 each in energy efficiency upgrades.
These new sites add 61 acres to the program, bringing the total to 167 acres across all phases.
While this completes the Solar Neighborhoods selection process, the three finalist neighborhoods not selected at this time for solar arrays (O’Shea, Mt. Olivet, and Trinity/Pickford) would be leading candidates if future solar arrays are sought and if the neighborhoods remain interested.
Phase 1 Finalists Site Maps:
Phase 2 Solar Sites Maps:
Solar Field Developers
Two solar field developers have been selected through an extensive bidding process to construct the fields:
- Lightstar Renewables:
- Responsible for building solar fields in Gratiot-Findlay and State Fair (63 acres in Phase 1) and 19 acres in Houston Whittier/Hayes for Phase 2.
- Lightstar Renewables is a Boston-based independent power producer (IPP) known for delivering over 1 GW of solar projects across the U.S., emphasizing community solar energy systems that create lasting benefits for people and the planet.
- DTE Electric Company:
- Responsible for constructing the 40-acre solar field in Van Dyke/Lynch (Phase 1) and 43 acres of solar fields in Greenfield Park (Phase 2).
- DTE operates more than 30 solar fields across Michigan, including a 250-acre site in Lapeer.
The City of Detroit will maintain ownership of all the land and lease it to the developers.
The solar fields will operate for 35 years, generating clean energy. At the end of their useful life, the contracts require developers to remove all solar equipment and return the property to the City as greenfield sites, ensuring flexibility for future land use.
Funding the Project
The project is made possible by tax credits from the Inflation Reduction Act (IRA) of 2022, which significantly improves the financial viability of renewable energy projects like this.
Capital Costs:
- $21 million in upfront costs for land acquisition and clearing (Phases 1 and 2) will be covered by the City’s Utility Conversion Fund, which is legally designated for energy conversion projects. The Utility Conversion Fund: Funds set aside for decommissioning coal-fired Mistersky Plant will be used to develop clean, renewable energy.
- No new appropriation is required for this expense.
Net Operating Costs:
- Annual operating costs are projected to increase by $1.7 million.
- The city currently spends $3.7 million annually on maintenance and services for the five blighted solar field zones, including illegal dumping cleanup, mowing, police and fire responses, and stormwater repairs.
Projected costs and savings for Phases 1 and 2:
Category | Annual Cost/Savings |
|---|
Operating Costs for Solar Fields | $8.3 million |
Renewable Energy Savings | ($2.9 million) |
City Department Cost Reductions | ($3.7 million) |
Net Costs | $1.7 million |
Land Acquisition – Phase 2:
- The land acquisition process for Phase 2 ensures fairness and voluntary agreements for all stakeholders:
- Owner-Occupied Homes:
- All 11 identified owner-occupied homes in the Phase 2 areas have entered into written agreements for voluntary buy-outs by the City.
- Homeowners have signed option contracts for agreed-upon prices, expressing their desire to move.
- Renters:
- Renters will receive the cost of relocating and 18 months of free rent in their new homes, as required by Michigan law.
- Vacant Properties and Rental Homes:
- Condemnation will be used to acquire properties owned by landlords and vacant landowners, who will be paid fair market value in compliance with Michigan law.
Home Energy Efficiency Upgrades
Documented owner-occupied homes in areas adjoining the solar fields in both Phase 1 and Phase 2 will receive energy efficiency upgrades. A total of 106 homes have been identified, with upgrades ranging from $15,000 to $25,000 depending on the size of the nearby solar fields.
Residents of occupied homes within the solar footprint will also receive the following on a voluntary basis:
- Compensation equal to double the market value (or $90,000 minimum) of their property, including moving expenses and relocation services.
- Any renters will receive 18 months' worth of rent along with moving expenses and relocation services.
- Each acre contributed will provide up to $25,000 in community benefits for energy-efficient upgrades, prioritizing affected homeowners and renters within the solar array footprint. Eligible home improvements include:
- Windows
- Roof repairs
- Energy-efficient appliances
- Energy-efficient furnaces and hot water heaters
- Home insulation and air sealing
- Smart thermostats
- Energy-efficient lighting
- Battery backup systems
- Residential solar panels
To receive the upgrades, homeowners must have lived in their home within the qualifying neighborhood boundaries as of December 31, 2023, and must still be living there when the upgrades are performed. The City has been working through the Department of Neighborhoods and Assessor’s Office to identify eligible homes and will continue outreach to connect homeowners with these resources following City Council’s approval of the contract.
Community Engagement Process
In Fall of 2023, 10 neighborhoods applied to host solar arrays in their communities as part of the Solar Neighborhood Initiative. This project is the result of cross-departmental collaboration between the City of Detroit's Office of Sustainability and the Department of Neighborhoods. Each neighborhood group designed the solar site location they felt would best serve their community, proposing to replace the most vacant areas prone to illegal dumping with solar panels.
The Phase 1 neighborhoods have successfully completed the final designs for their solar areas, which will include fencing, vegetation, and trees surrounding the arrays. Once contracts for Phase 2 are approved, these neighborhoods will have the opportunity to design the solar sites for their respective areas, ensuring community involvement every step of the way.
Neighborhood Solar Partners (NSPs)
The City of Detroit continues working with community groups and Neighborhood Solar Partners (NSPs) to foster ongoing engagement and collaboration throughout the initiative. Community-based organizations have been instrumental in assisting residents throughout the process, ensuring that local voices are heard and involved in every stage.
The following groups will continue to advocate for neighborhood interests during the implementation of the solar fields:
- Green Door Initiative
- EcoWorks
- D2 Solar
- MI Interfaith Power and Light
- Peace Tree
- Sustainable Community Farms
- Walker-Miller Energy
- Rescue MI Nature
- Worldwide Management Services Corporation/Communities Power
- Ryter Cooperatives
- First Family Solar
- Anti-Gravity, LLC
- SDEV
- Energy Alliance
Community Voices: Solar Stories from Detroit
Hear from local residents, City Council members, community leaders like Tammy Black, and other advocates as they share their experiences with solar energy and its impact on our neighborhoods.
Equity fund for Phase 2 homeowners
In July 2023, the Detroit City Council approved phase one of a Solar Neighborhood initiative to transform large vacant land parcels into solar energy farms. The plan includes several key measures, such as establishing a Solar Equity Fund, funding solar panel technology, acquiring private land for the project, and supporting homeowners in relocating from areas designated for solar farms.
Solar Equity Fund
The Solar Equity Fund is a critical resource that facilitates site preparation, property acquisition, legal and appraisal costs, and other expenses tied to the Solar Project's development. The fund, estimated at $4.4 million, will be financed through reserves from the Utility Conversion Fund. This initiative aims to support homeowners and communities impacted by the city's solar energy transition while ensuring equitable development.
Phase One: Building Momentum
The first phase involves setting up solar farms across 103 acres in three selected neighborhoods. This includes assisting homeowners currently residing in these areas by offering buyout options to ensure a smooth transition.
Phase Two: Timeline and Homeowner Equity
Phase two, which involves selecting additional neighborhoods for solar farm development, is scheduled for 2026. Currently, five neighborhoods are competing for inclusion in phase two, with 31 owner-occupied homes in these areas already under option agreements. To address the uncertainty for these homeowners, the city proposes using the Solar Equity Fund to allow those affected to exercise their sell options and relocate if needed, mitigating challenges during this transitional period.
Long-Term Vision and Sustainability
Solar farms established under this initiative will generate renewable energy for an estimated 25–35 years. Once they reach the end of their operational life, agreements require developers to dismantle the solar equipment and restore the properties to greenfield status, ensuring the land remains environmentally sustainable for future use.
This initiative represents a significant step forward in Detroit's commitment to renewable energy and equitable urban development, transforming blighted neighborhoods into sources of clean power while prioritizing the needs of residents.
Neighborhood Solar Initiative Timeline
Launch & Planning
- June 2023: Mayor Duggan announces the Neighborhood Solar Initiative, offering community benefits to participating neighborhoods.
- December 2023 - February 2024: City opens Request for Proposals (RFP) for solar developers. The City evaluates submissions and community support to select neighborhoods for solar array projects.
Community Engagement
- Ongoing: Office of Sustainability and Department of Neighborhoods collaborate with local groups, engaging residents through 60+ meetings to plan site layouts and community benefits zones.
- Community Partners: 19 neighborhoods applied to host solar fields on vacant land through partnerships with environmental organizations.
Selection of Finalists
- February 2024: Resident-supported neighborhoods advance, resulting in nine finalists, now narrowed to eight. Final site selections require City Council approval.
Phase 1 Neighborhood Selection
- February 2024: Gratiot/Findlay, State Fair, and Van Dyke/Lynch neighborhoods chosen to host the first 104 acres of solar arrays.
Phase 2 Neighborhood Selection
- January 2025: Houston Whittier/Hayes and Greenfield Park/I-75/McNichols neighborhoods selected as Phase 2 sites, adding an additional 86 acres of solar fields.
Phase 1 Execution
- Late Fall 2024: Site preparation for 103 acres begins, focusing on construction readiness for solar installations in Gratiot/Findlay, State Fair, and Van Dyke/Lynch neighborhoods.
Phase 2 Execution
- January 2025 - March 2025: Site preparation for Phase 2 begins in Houston Whittier/Hayes and Greenfield Park/I-75/McNichols neighborhoods. Finalized designs include landscaping and community-defined upgrades for 106 owner-occupied homes across both phases.
Next Steps
The Mayor’s Office has transmitted several documents to City Council for approval to move the project forward:
- A resolution for the acquisition of private property in the Phase 2 neighborhoods to assemble the land needed for solar arrays.
- Contracts with the two selected developers to expand solar production in Detroit.
Future Expansion
- Community Design & Approval: The City, developers, and residents continue to finalize site designs, including landscaping and maintenance plans, ensuring alignment with community priorities.
- City Council Approval: Resolutions include property acquisitions, developer contracts, and an equity fund for homeowner buyouts in remaining finalist neighborhoods.
- Additional Projects: Future solar projects will be identified to further expand clean energy, including powering city streetlights and enhancing sustainability across Detroit.
Reducing Emissions, Lowering Energy Costs, and Building a Sustainable Future
The Solar Neighborhood Initiative not only aims to reduce emissions and energy costs but also promotes quality jobs, community wealth-building, and energy resilience. It aligns with the Detroit Climate Strategy and broader national goals set by the Biden-Harris Administration, contributing to a more sustainable and equitable future for Detroit residents.
The initiative is crucial for achieving Detroit's goal of reducing municipal greenhouse gas by 35% by 2024 per the 2019 City Council approved GHG Ordinance. The Neighborhood Solar Initiative will offset emissions 23% of 2012 levels. Combined with the business-as-usual anticipated decrease of 13%, the City will be on track to achieve our municipal goals with a 36% reduction.
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