News > Michigan homeowner generates savings and resilience through solar

Michigan homeowner generates savings and resilience through solar

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October 10, 2024

Pete Olin’s interest in solar energy stemmed from a desire to produce and use more clean energy. A need for resilience in the face of one too many blackouts spurred the Ann Arbor, Michigan resident into action.

“With these power outages we were just getting so frustrated … losing everything in the fridge and ending up in a hotel for a day or two,” said Pete. Not wanting to install a whole-house generator powered by gas, he began searching for a solar installation partner he could trust to help him secure the backup power he required.

Fortuitously, around that time, a friend invited him to learn more about the Solarize Ann Arbor Program — a solar bulk purchase campaign facilitated by the city. By participating in Solarize, Pete would not only be eligible for a discount but was connected with a reputable, vetted local installer. ”That got me confident a lot faster,” he said.

Pete received a 15 percent discount off the cost of his solar panels through the initiative. He also benefited from the federal renewable energy investment tax credit, or ITC. The ITC will help him save an additional 30 percent off the cost of his panels and the battery storage he opted for. “The tax credits really make it a much nicer deal than it would be, especially with the batteries.” Supported by local and federal programs, he saved $9,500 on the cost of his system. “After the discount, the battery system cost less than what my neighbors were paying to put in the whole-house generators.”

Pete’s experience is not an outlier. Since the Inflation Reduction Act (IRA) increased the ITC to 30 percent in 2022, Solarize Ann Arbor says they “see an average upfront cost savings of $3,390 from the Solarize discount and then $5,763 from the ITC, resulting in a total of $9,153 in savings.” These combined cost reductions have led to 2,379 kilowatts of solar being installed across 302 homes.

Since turning on his system in December 2023, Pete says the majority of his energy consumption now comes from solar. In the summer months, it accounts for upwards of 80 percent, lowering his monthly bill to around $20.

Pete says he would have been much slower to act were it not for Solarize. Thanks to the community support and confidence instilled by the program, he is now enjoying the resilience he was after. “So far we have had a couple power outages and it’s carried us through.”