Ann Arbor Launches First City-Run Clean Energy Utility

When Krystal Steward knocked on doors in her Ann Arbor neighborhood three years ago offering free home energy upgrades, most people thought it was too good to be true. But once one neighbor tried it, word spread fast.

Now that same neighborhood is about to make history. Bryant, a community of 260 homes where many families struggle with sky-high utility bills, will pilot America's first city-run Sustainable Energy Utility this spring.

Here's how it works: residents stay connected to their regular power company but opt into having the city install solar panels and battery systems on their homes. The city pays for everything upfront and maintains the equipment. Homeowners then get two bills, one from each utility, that together cost less than what they're paying now.

"Just like customers don't own a power plant, the city owns and finances the system upfront, and they pay for that electricity through a monthly bill," said Executive Director Shoshannah Lenski. The model helps renters too, who usually miss out on green energy incentives.

The idea sparked something special in Ann Arbor. When voters went to the polls in November 2024, nearly 80% said yes to the Sustainable Energy Utility.

Community Action Network executive director Derrick Miller remembers when the concept seemed impossible. "When we started having a conversation about how to decarbonize the neighborhood about four years ago, it felt outlandish," he said. "Now, it doesn't feel like anyone can stop us."

The Ripple Effect

The program answers a big question: how do cities reach ambitious climate goals when not everyone can afford rooftop solar? By letting the city own and operate the clean energy systems, Ann Arbor removes the biggest barrier to going green.

Even DTE Energy, the private utility that currently serves the city, supports the plan. As power demands surge nationwide, having local governments help manage energy needs takes pressure off struggling utilities.

The city will serve 100 to 150 Bryant residents this year, expand to 1,000 customers in 2026, and grow by several thousand annually after that. More than 1,500 people across Ann Arbor have already expressed interest.

The program could eventually build microgrids too. Imagine solar panels on a school powering classrooms during the day, then sending electricity to nearby homes at night.

For Bryant residents who pay over a third of their income on utilities, the changes can't come soon enough. Stewart, the social worker who started this journey by knocking on doors, has watched her community transform from skeptical to excited.

What started as one neighborhood's dream is becoming a national model for cities taking control of their energy future.