Program: Center for EmPowering Communities
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Renewable energy projects can bring substantial new revenue to Michigan communities—but revenue is only part of the story. Hosting large-scale solar, wind, or battery energy storage facilities also carries long-term administrative and fiscal responsibilities. From permitting and construction through decades of operation and eventual decommissioning, these projects require sustained local oversight that can strain staff capacity and budgets, particularly in smaller or rural jurisdictions.
Balancing the Books When Hosting Renewable Energy helps local governments anticipate and manage the full life-cycle costs associated with large-scale renewable energy development. The guide outlines major project phases, identifies where local expenses are likely to arise, and presents practical strategies to offset or stabilize those costs, including approaches for allocating certain expenses to developers and alternative funding mechanisms to support ongoing compliance and oversight.
Produced by the Center for EmPowering Communities at the University of Michigan’s Graham Sustainability Institute and reviewed by experts across government, industry, and academia, the guide is grounded in research and practice. It is designed to help communities sustain fiscal benefits while protecting long-term administrative capacity.
For ease of use, direct links to appendices and a consolidated list of tools and resources is provided below.
Appendices
Appendix A: Sample Escrow Fee Agreement
An escrow account is used to cover costs associated with a local government’s review of a land use application beyond the application fee, which may include fees for engineers, planners, and consultants, among others. This sample escrow fee agreement provides an example of how a local government may define the terms and conditions for the escrow account.
Appendix B: Zoning Permit Inspections
Adding inspections to zoning permit processes can help ensure renewable energy projects comply with site plans and local zoning. This process supports timely issue identification and resolution during construction, especially for complex developments. This overview highlights key zoning permit considerations and inspection points for renewable energy projects.
Appendix C: Ongoing Performance Expectations
Long-term oversight of renewable energy projects depends on clear expectations set during land use approval. Some standards in zoning ordinances only apply once a project is constructed and operational, requiring ongoing attention from local governments. This appendix outlines key housekeeping items for long-term compliance to help track important responsibilities and maintain oversight.
Appendix D: Sample Decommissioning Agreement
Prior to issuing a permit for a project, a local government should enter into a decommissioning agreement with the project developer based on the terms specified in the decommissioning plan. This sample agreement outlines how and when a project will be decommissioned and includes some form of financial assurance—usually a performance bond—that allows the local government to execute the plan if the developer fails to do so.
Tools and Resources
Planning and Zoning
- EGLE Renewable Energy Academy workshops on planning and zoning for large-scale renewable energy and energy storage projects.
- Sample ordinance language and guidebooks:
Application Review
- MPSC Renewable Energy and Storage Facility Siting website
- MPSC Application Filing Instructions and Procedures (AFIP)
- Checklist for local governments navigating the MPSC process
Ongoing Zoning Compliance
- MPSC Complaint Resolution Process requirements: As an example, review MPSC’s language in section 7.16 of the Application Filing Instructions and Procedures.