Sterling Heights sees solar power as bright idea

STERLING HEIGHTS — The city is looking up in order to bring electricity costs down.

Up as in the sky, which is where a proposal in the 2026-27 budget calls for harnessing sunlight to generate power for three municipal buildings: City Hall, the public library and the police station.

In addition to cutting the electricity bill for the buildings, investing in solar power furthers the city’s goals of reducing greenhouse gas emissions and increasing renewable energy sources. Those goals are part of the city’s climate action plan, which the City Council adopted last year.

Sterling Heights Sustainability Planner Alexis Weinberg outlined the solar power plan at an April 14 budget meeting, saying the city would save about $3.5 million in electricity costs over 8 1/2 years.

Weinberg said that solar panels would be placed on the building rooftops and explained the technical details of how the devices turn light from the sun into usable energy. She noted the rising costs of electricity purchased from DTE Energy and the financial benefit the city could realize by using solar panels.

“I’m sure many of you have noticed that the rates on your home bills have gone up, and the same is true for the city,” she said. “

For example, in 2022, we spent approximately $121,000 on electricity for the buildings that we’re looking to install solar on. In 2024, we spent approximately $191,000 on electricity for those same buildings.”

Weinberg said that translates to a nearly 10.5% cost increase, whereas the city’s energy consumption only increased by about 4.6% for the period. “So as grid electricity becomes more expensive, the electricity that is generated by solar becomes more valuable,” she said.

Weinberg said solar power would supply about 27% of the electricity needs for the three buildings, so the city would still depend on utility energy.

According to the solar power proposal, the cost to install and maintain the panels is a little more than $1 million. However, a federal tax credit for solar investment would offset 30% of that amount, leaving the city’s cost at $711,754.

“It is important to know that time is of the essence if we want to seize the opportunity to obtain the tax credit, as the federal government is phasing them out,” Weinberg said. “All things considered, our payback period would be 8 1/2 years, with a 273% return on investment and a 12% internal rate of return.”

She said the payback period could be much shorter if electricity rate increases continue trending upward. The city’s initial investment could also come in lower after actual bids for the project are received.

 

Green goals
Beyond cost savings, adding solar power helps Sterling Heights pursue environmental outcomes officials have set, such as reducing greenhouse gas emissions and emphasizing renewable energy sources. Greenhouse gasses trap heat in the atmosphere and contribute to the adverse effects of climate change.

Sterling Heights is aiming to cut municipal greenhouse gas emissions in half by 2030 and to be net zero by 2050, which aligns with Michigan’s clean energy future plans.

“In fact, for the state to reach its net zero goal, they are depending on local governments like Sterling Heights to implement reduction strategies,” Weinberg said. “

In addition to the use of solar, the city is also working to reduce our emissions in other ways, like completing efficiency upgrades in our buildings and increasing the number of electric vehicles in our fleet. It’ll take a multiprong approach to meet our goals, and the installation of solar is one component.”

City Council members appeared to favor the solar power proposal, with some suggesting expanding it to other city facilities in the future.

“I think it’s a wonderful idea,” Mayor Pro Tem Liz Sierawski said. “

We need the sustainability.”

“I’m really excited about the solar energy panels that we’re putting on the city buildings,” Councilwoman Barbara Ziarko added.

Councilman Michael Radtke said some of his initial concerns about the solar power plan were alleviated after Weinberg’s presentation, “But the payback period bothers me.”

“It’s a very large upfront cost for payback two councils from now,” he said. “

Two full elections will have transpired until this essentially goes revenue neutral.”

Nonetheless, Radtke said after hearing the presentation, he supports the solar plan.

“I think you’ve convinced me, honestly,” he said.

The City Council was scheduled to adopt the 2026-27 budget at its May 5 meeting.