As large-scale renewable energy development expands across Michigan, host communities are navigating new fiscal opportunities alongside complex siting and governance considerations. Solar, wind, and battery energy storage projects can generate meaningful local revenue, but realizing those benefits requires a clear understanding of available revenue streams, regulatory frameworks, and options for their use.

Strategies for Renewable Energy Revenue: A Guide for Michigan Local Governments was developed to help local governments plan for and manage the economic impacts of large-scale renewable energy projects. The guide outlines three primary revenue streams available to Michigan communities—tax-based revenue, one-time payments, and lease or easement payments—and offers practical strategies and tools to support informed decision-making.

The guide was developed by the Center for EmPowering Communities at the University of Michigan’s Graham Sustainability Institute and reviewed by experts from local government, energy-related nonprofits, and other relevant sectors. It is grounded in research and practice and designed to help communities align renewable energy development with local priorities and fiscal needs.

For ease of use, a consolidated list of the tools and resources cited throughout the guide is provided below.

Tools and Resources

Tax-Based Revenue

• Policy explainer on local tax impacts for large-scale wind and solar projects: Learn even more about Michigan’s tax system for renewables
• Wind tax calculators: Estimate potential tax impact with jurisdiction-specific calculators
• Solar tax calculators: Estimate potential tax impact with jurisdiction-specific calculators

One-Time Payments

• EGLE’s RRCA website
  • RRCA FAQs
  • RRCA dashboard
• MPSC Renewable Energy and Storage Facilities Siting website
  • MPSC Application Filing Instructions and Procedures
• Checklist for local governments navigating the MPSC process
• ORP Rural Readiness Network and Rural Readiness Grant: A key resource for Michigan communities in identifying and preparing for grant programs
• MI Funding Hub: An initiative that helps communities capitalize on state and federal funding opportunities. Get information on available grants, find other tools to help your community become more grant savvy, or get help answering your grant search questions.

Select federal grants supporting infrastructure and community resilience:

• USDA Rural Development – Community Facilities Grant and Loan Program: Supports essential community infrastructure such as fire stations, public safety equipment, and community centers
• FEMA – Building Resilient Infrastructure and Communities (BRIC) Grant Program: A cornerstone program for communities addressing flooding, drainage, or emergency preparedness
• EPA – Clean Water and Drinking Water State Revolving Funds (SRF): Foundational funding for water and wastewater infrastructure upgrades
• EPA – Great Lakes Environmental Justice Grant Program (Thriving Communities): Funding and technical assistance for green infrastructure projects and water quality improvements
• HUD – Community Development Block Grant (CDBG) Program: Flexible funding source that can support facility improvements, infrastructure upgrades, and downtown revitalization

Lease or Easement Payments

• Michigan State University Extension: Agricultural Solar Energy Development – Understanding Lease Agreements for Utility-Scale Installations
• Ohio State University Extension: Farmland Owner’s Guide to Solar Leasing
• Texas A&M: Solar Lease Considerations for Landowners
• NC Cooperative Extension: Considerations for Transferring Agricultural Land to Solar Panel Energy Production
• Purdue University: A Landowner’s Guide to Commercial Wind Energy Contracts