DTE Energy wants your cash to build solar power in Michigan

DTE is a fixture in supplying energy for consumers and businesses in many parts of Michigan, including parts of the upper peninsula. That’s why it’s exciting to see one of its subsidiaries, Detroit Edison, taking definite steps toward renewable energy. Detroit Edison is paying environmental consulting firm Nova Consultants $18 million to analyze the potential of adding 3 megawatts in solar power to southeast Michigan.

This is one of potentially 10 different projects that could each produce 500 kilowatts of solar power each. Detroit Edison needed approval from the Michigan Public Service Commission (MPSC) to proceed because its rates are regulated and this initiative had to fit within those budget constraints. Right now this won’t mean any rate hikes for end consumers, but the company wants to charge more in some form of “recovery fee”.

In other words, it wants to pass the cost on to its customers. If these projects introduce a lot of solar energy into the existing electrical grid, that added cost just might be worth it. It would be another step in reducing the United States’ dependence on oil-rich countries to supply its energy needs.

The [MPSC] said it will approve cost recovery only after it has had the opportunity to review the company's actions taken under the contract and associated costs. These costs will be reviewed in a contested case proceeding.

These projects are in preliminary stages with a focus on choosing good locations, maintaining compatibility with the existing electrical grid, figuring out how to construct effective buildings, and generate power safely. Assuming those problems meet with solutions Detroit Edison will be taking a step in green direction.

Parent company DTE Energy has many other renewable projects including several initiatives with wind energy. Currently only 1% of the company’s energy is sourced from renewable sources. In order to comply with the Clean, Renewable, and Efficient Energy Act of 2008 a company of its size, serving 3.4 million customer must derive 200 megawatts of power from renewable sources.