Ann Arbor residents have voted to authorize Proposal A: Creation of a Sustainable Energy Utility. The Sustainable Energy Utility (SEU) will be an opt-in, supplemental, community-owned energy utility that provides 100% renewable energy from local solar and battery storage systems installed at participating homes and businesses in the city. Now authorized, the detailed final planning and design work to officially launch the SEU can begin in earnest, with a goal of utility launch within 18–24 months.
SEU Updates
November, 2024 - Section 15.10 of the Ann Arbor City Charter (Charter.pdf) was added to address the Creation and Operation of the Sustainable Energy Utility. Also, in November, an SEU Steering Committee was formed consisting of City staff and expert consultants.
December 2024 - January, 2025 - Drafting of changes to the Ann Arbor Code of Ordinances (Code of Ordinances | Ann Arbor, MI | Municode Library) took place with a final draft under review by the SEU Steering Committee. Development of a job description for Director of the SEU was prepared and reviewed by the Steering Committee. A job posting will be made in February, 2025 after approval by the City Administrator and Director of Human Resources and Labor Relations.
February 3, 2025 – SEU Update
Look-Ahead for Q1 and Q2, 2025 - Continuation and issue of SEU strategic plan including services definition, budget plan, and deeper exploration of financing opportunities. Hiring of SEU director. Continuation of financing and funding exploration. Biweekly public updates on SEU development launched.
What is a Sustainable Energy Utility?
The Ann Arbor Sustainable Energy Utility is an opt-in, supplemental community-owned energy utility that provides 100% renewable energy from local solar and battery storage systems and networked geothermal systems installed at participating homes and businesses in the City.
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The SEU provides 100% clean, reliable, resilience, locally built, and affordable energy – energy built by the community for the community.
What value would an SEU provide?
An SEU is an innovative municipal utility that focuses almost exclusively on energy generation at the point of energy use. Because of this, the Ann Arbor SEU will be:
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Resilient – Through a diverse mix of energy generation and the use of energy storage, subscribers to the SEU will still have power even when disasters disrupt the traditional energy grid.
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Reliable – Focusing on generating energy at the source of use minimizes the need for distribution systems (e.g., poles and wires), which are currently the most vulnerable part of the existing energy system. This means that SEU generated energy will be more reliable (and resilient) than energy from a traditional utility.
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Clean – The SEU will only generate power from renewable energy sources such as solar and geothermal systems. This means that every electron provided by the SEU will be from a clean energy source – one generated in our own community.
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Local – The SEU is all about generating energy locally – in our community, on our roofs, in shared spaces, and under our feet. You can't get more local than that!
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Supplemental – The SEU does not replace the DTE grid. Instead, it supplements it, ensuring that residents have more options in how they get their energy.
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Optional – Residents have a choice to participate (or not) in the SEU. No one will be required to take service from the SEU but everyone will have the choice to participate in at least some of the SEU's offerings. By providing choices, we are diversifying our energy options and ensuring everyone has the opportunity to enjoy the benefits of clean, healthy energy systems.
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Affordable – The proposed SEU provides access to clean energy at rates cheaper than what we currently pay for dirty electricity and offers energy storage solutions for less than the average cost of a whole-house generator, helping to make clean energy options affordable to more residents.
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Community-Owned – The SEU is a municipal utility and, as such, will be a community-owned asset.
What services could an SEU provide?
As a municipal utility, the Ann Arbor SEU could deliver an array of services and benefits to help the community save energy, adopt clean energy options, and improve health, including:
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Improved energy reliability and resilience via the installation of solar and energy storage systems on homes and businesses.
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Sustainable heating and cooling through the installation of networked geothermal systems.
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Indoor air quality improvements through appliance replacement programs.
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Robust energy waste reduction (efficiency and weatherization) programs that save residents money while improving comfort, safety, and health.
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Microgrids or the sharing of solar energy between neighboring households and businesses.
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Community solar programs that provide residents the benefit of solar (and other energy systems) installed in shared areas of the City.
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Energy justice initiatives to ensure that everyone in the community has the benefit of the clean energy economy.
What services might the SEU offer at the start?
The SEU will provide solar and battery storage, energy waste reduction (efficiency and weatherization) programs, and beneficial electrification support for individual households and businesses. Over time, these offerings will grow to include shared energy solutions for multiple neighbors (e.g., microgrids) as well as networked geothermal for sustainable heating and cooling.
What are the next steps for the proposed SEU?
The SEU will be supplemental and optional, meaning that it will not replace the pre-existing grid and will be paid for only by those who opt-in to SEU services. The SEU will also enhance reliability through a diverse mix of local renewable energy generation and the use of energy storage, meaning subscribers to the SEU will still have power even when disasters disrupt the traditional energy grid.
While residents may not see much regarding the deployment of SEU clean-energy assets for 18-24 months, the City of Ann Arbor is currently registering interest in the SEU and will have multiple outreach and engagement events over the coming months. Residents who are interested in enrolling in the SEU or being the first to hear about informational sessions, public engagement opportunities, or SEU-related updates, are encouraged to join the waitlist and monitor this page.
Want to learn more?
Want to learn more and/or still have questions? Check out these resources for a deeper dive into the proposed SEU:
- SEU frequently asked questions document
- SEU Technical Report
- SEU Financial Assessment Report from Strategen (spring/summer 2024)
- SEU Rate Model As Prepared by Strategen (spring/summer 2024)
- Short Summary of SEU Financial Analysis Conducted by Strategy (spring/summer 2024)
- Results from 2022 public input survey on our energy future
- Medium length (7-minute) video on results from 2022 public input survey
- 60 minute video introducing the SEU (aired on July 16, 2024)
- 60 minute video introducing the SEU (aired on August 21, 2024)
- Summary Results from 2023 public input survey on our energy future
- Full summary report from 2023 public input survey
- Short (1-minute) video on the SEU
- Medium-length (3 minute) video on the SEU
- Longer (90 minute) video of a public meeting on the SEU from October 28, 2021.
Still have questions?
Please send your questions to sustainability@a2gov.org.
301 E. Huron Street, Ann Arbor, MI 48104
Dr. Missy Stults,
Sustainability and Innovations Director
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