Twelve economic reasons for supporting renewables.
1. Locally produced energy will keep money in the community.
Here's how. Michigan only produces about one-fifth of the energy it uses on an annual basis. For example, Michigan still generates more than ten percent of its electricity from coal. Coal is just about the dirtiest fuel we could use. We don't mine coal here, but we do pay other states to import it, sending dollars out of the community. The same is true for gasoline, diesel, fuel oil, and propane. In addition to importing fuels, much of the electricity that Michigan imports is generated in Ohio and Illinois using coal and methane to do so. As transportation electrifies, as Americans turn to more efficient electrified appliances like heat pumps and induction stoves, the demand for electricity will increase. Wind, solar and to a limited extent nuclear, allows us to generate what we need right here, thereby keeping our dollars working and circulating in our own economy.
2. Clean energy installations will bring outside dollars into the community.
Here's why. Many businesses are looking to relocate or set up new facilities in states with clean energy generating capabilities thereby bringing even greater opportunities for the residents of those states. If Michigan grows its energy production in renewables, it could begin selling its surplus to nearby states which refused to leave dirty, expensive fossil fuels behind.
3. Mid and large scale renewable projects in your community will dramatically lower your taxes.
Here's how. Communities traditionally expand their tax base by developing land in the form of housing and supporting infrastructure, resulting in urban sprawl and the loss of farm and natural lands. A solar or wind installation will increase a community's tax base without the added expense of expanding schools, roads, water, gas, and sewer infrastructure. The farm under windmills can still grow the same crops. Solar panels can allow smaller scale grazing or farming beneath them. Not all installers offer the same compensation or contract and some are better stewards of the soil than others.
4. Clean energy jobs are the fastest growing portion of the energy sector.
Here's why. Solar energy followed by wind energy are now by far the cheapest ways to produce electricity. Clean energy technology now employs more people than fossil energy does and clean energy companies are struggling to find qualified workers.
5. Renewable energy will lower your utility bills.
Here's why. Solar energy followed by wind energy are now by far the cheapest ways to produce electricity. Renewables produce the bulk of their energy during the day when energy demand peaks. The "on peak" nature of renewables allows utilities to avoid employing "Peaker" plants as frequently. You may remember your local news station passing on requests by your energy producer during the hottest summer days asking people to use less air conditioning if possible. That's because high demand stresses their ability to produce enough electricity and they must employ "Peaker" plants to fulfill the extra demand. These are often gas fired (sometimes oil fired) power plants that sit idle much of the time. Often "Peaker Plants" are owned by other companies. The electricity from those plants costs way more than electricity generated from other sources because those turbines sit idle most of the time while accruing maintenance and property costs. They must be ready in short order AND utilities are willing to pay a premium for their capabilites in order to keep their customers (and shareholders) happy. Renewables however, produce the lowest costing energy of any source. When renewables are distributed closer to the point of use, they reduce stress on the grid and lower grid maintenance costs as well.
6. Renewable energy will lead to cleaner air, water and soil.
Burning coal is a major source of mercury contamination in the water and soil. Particulate matter from coal fired powerplants more than doubles the risk of death for residents living downwind of the powerplants according to a major study completed by three major universities in 2023. The study's researchers developed a tool to help visualize the deaths in each state attributable to the 480 studied powerplants over the course of the ten year study. Renewables reduce the reliance on "Peaker" plants by utilities. Peaker plants often produce very dirty emissions and at times high temperatures and high ozone levels when air quality is already low.
Leaking methane from fossil gas facilities significantly contributes to ground level ozone and particulate matter. Exposure to which, damages airways, aggravates lung diseases, causes asthma attacks, increases rates of preterm birth, cardiovascular morbidity and mortality, and heightens stroke risk.
7. Less reliance of fossil energy leads to greater global security.
8. Installing solar on your home is a sound investment.
Depending on Net Metering Rules in Michigan and the site of your panels, you could have your panels paid off and be free of an electric bill in under ten years, all while helping reduce carbon emissions and increasing the energy resilience of your community. Net Metering rules are dictated by state law and could change. When you sell your home, the cost of the installation is often completely recovered in the sale price.
9. Renewables can increase the resilience of the electrical grid.
Here's how. Renewable energy can be deployed near the point of use whereas the conventional method is to send electricity from a centralized power plant often a hundred or so miles. A significant amount of this energy is lost due to the extra resistance encountered during its travels through long wires. Additionally energy is lost as it travels through the smaller wires in residential buildings. The larger the community, the greater the loss of energy. This energy dissipates as heat. The extra heat leads to extra wear and tear on the wires and associated hardware which makes them more prone to early failure. Putting renewables in and around communities, reduces line loss and the associated wear and tear, conserves energy and saves money for everyone. Also, the longer the energy must travel to get to its destination, the greater the chance it can have its journey interrupted by a weather event or accident along the way. Finally, solar and wind are less likely to be affected by supply issues compared to other fossil plants since the raw material (wind and sunlight) are not subject to supply chain issues the way, coal, natural gas and even nuclear powered generation systems are.
The integration of renewables into the older infrastructure and associated energy management methods will cause some challenges until more modern systems can be installed. However, the ability to establish microgrids within the larger grid, will allow communities to operate independently if their local systems are unaffected when the larger grid is down due to a weather event.
10. Renewable energy will help lower your insurance rates.
Insurance companies are citing climate change related catastrophes as the reason rates must go up.
https://www.cbsnews.com/news/homeowners-insurance-cost-rising-climate-change/
https://www.foxbusiness.com/personal-finance/weather-related-events-raise-homeowners-insurance-rates
11. Renewable energy installations can make the family farm pay again.
Here's how. Family farms were hollowed out during the 1980's. You may remember the scenes on the evening news of family farms being auctioned off. Local farmers, who were still solvent, often refused to bid on auction items in protest against the banks, federal economic and trade policies. Farmers who had outside income or were fortunate to be growing certain high profit crops were able to keep their farms. Some farms expanded to profit from the economics of scale in order to keep their farm in the black. The number of farms dwindled rapidly. Nowadays many of those surviving farms still exist but their aging owners simply rent their land to larger outfits who are growing corn or soybeans, half of which goes to biofuels. Ask those owners how renting out their land is working for them and you are likely to hear the exact same statement. "It pays the taxes."
Those same farms, if able to install renewable energy generators like windmills and solar panels could enter into long term contracts that pay more than one thousand dollars per acre per year in land rent. That's the kind of money that will feed and clothe children, send them to college, pay for a vacation, fix up the house and build a nest egg. Most farming activities can continue as before under windmills. Some companies are better stewards than others. Some contracts are better for the landowner than others.
12. Economically speaking, our community risks being left behind by holding onto fossil technology.