Michigan Budget Invests Big in Clean Energy Transition


The Michigan legislature passed a fiscal year 2024 budget which received bipartisan support and will go into effect immediately after approval from Gov. Gretchen Whitmer.

The state budget makes key investments in infrastructure including advanced energy, which will add jobs to the state’s strong clean energy industry while improving grid resiliency, lowering energy bills and reducing greenhouse gas emissions.

“This budget represents a historic investment in Michigan’s infrastructure and doubles down on the jobs that are part of the fastest growing industry sectors in the nation,” says Samarth Medakkar, Michigan state lead for Advanced Energy United, the national association of businesses working to achieve 100% clean energy and electrified transportation.

“From Gov. Whitmer’s initial introduction of her budget priorities, through passage by leaders and champions in the state legislature, Michigan has secured its spot as a Midwest leader in the clean energy economy.”

The budget supports implementation of key aspects of the governor’s MI Healthy Climate Plan, the state roadmap to economy-wide carbon neutrality by 2050, to lead in the energy transition. Still, more work is needed to carry the MI Healthy Climate Plan forward beyond these historic state budget investments. The state legislature has introduced many bills that will continue to realize the economic gains that clean energy industries offer.

The budget includes the following key programs:

  • Grants for schools toward energy efficiency, renewable energy and electrification projects ($50 million). 
  • Grants for schools toward energy efficiency audits and solar feasibility studies ($20 million).
  • Federal funds from Infrastructure Investment and Jobs Act (IIJA) for public utility investment in grid resiliency ($43 million). 
  • Incentives for communities to site renewable energy projects of greater than 20 MW ($30 million). 
  • Federal funding for pre-weatherization ($25 million) and funding for weatherization ($60 million), $40 million of which allocated from IIJA.
  • Grants for businesses, local government units and non-profits for deploying renewable energy and electrification infrastructure projects ($21.3 million).
  • Energy efficiency revolving loan program for businesses and homeowners ($8.4 million).
  • Funding for Michigan Saves Green Bank for to spur investment in residential and commercial clean energy ($5.5 million). 

Adds Medakkar: “We are eager to roll up our sleeves to help implement the programs in the budget and support the legislature this fall in going further to unleash the businesses that are pivotal in realizing a carbon-neutral economy.”

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