ESCANABA, Mich. (WZMQ) – For the last several years, Michigan communities have been working to meet the State’s renewable energy goals. The City of Escanaba continues to make progress by establishing more solar energy sources.
On Tuesday, a crew from Peninsula Solar climbed to the roof of the City’s Electric Department to install solar panels.
“It’s an 85-kilowatt AC facility, 164 panels,” said Electric Utility Director Gerald Pirkola. “In a year, it should generate 100 kilowatt hours. That should meet all of the energy usage that we use for this electric department.”
According to Pirkola, the endeavor is a response to the Inflation Reduction Act of 2022.
“It allows municipal electric utilities to receive tax incentives to promote renewable energy projects,” he explained. “Pretty much every municipal in the Upper Peninsula is eligible for a 40% return on the total project. Recently, we applied for a low-income bonus, which is an additional 10%.”
Once the work is complete, the department will be on track to get 50% of its investment back.
“The total project cost is about $162,000, so we’re looking at getting $81,000 back,” Pirkola said.
The project should be operational by the end of April. Within about eight years, Pirkola expects it to have paid for itself.
“That money will go back into the electric fund, and it will be used for other projects or operating expenses,” he said. “Even the Electric Department has to pay an electric bill.”
He says offsetting that electric bill cost will result in a slight reduction for customers.
“That’s all part of the big pot,” said Pirkola. “We’re fully funded by rate payers. We don’t take any tax money, so yes, for us it’s going to help our ratepayers in the long term.”
Pirkola believes the rooftop solar project will be a success. If it is, the idea could spread to other municipal departments.
“It’ll save money for the various departments, and that’s ultimately savings to our customers and the ratepayers and taxpayers,” he said.
