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Incentive program will keep supporting communities saying yes to Michigan’s clean energy transformation

Funding pool increases for Renewables Ready Communities Awards

LANSING, Michigan — The Michigan Department of Environment, Great Lakes, and Energy (EGLE) today announced a new and larger phase of its Renewables Ready Communities Awards (RRCA), a funding opportunity for local governments involved in locally permitted, large-scale projects that will provide Michigan households and businesses with clean, renewable energy.  

Local governments may receive up to $4,000 per megawatt (MW) of projects they permit and/or host. The one-time award payment is made in full when construction begins on the project, with a potential for the award amount to increase by 25%, up to $5,000 per MW. If host and permitter are separate (such as a county permitting and a township hosting), each local unit may apply for half of the award. 

The program incentivizes communities to locally permit large-scale renewable energy projects such as wind, solar, and battery storage by providing awards that supplement the project’s tax revenue and community benefits.  

To qualify, a project must be a grid-connected wind, solar, or battery storage facility of at least 50 MW that received a local permit after Sept. 30, 2023, most commonly through special use or site plan approval. Governments may apply for an RRCA as soon as the project receives a local permit. A municipality may apply for and receive multiple RRCAs if it’s involved with multiple energy projects. 

“Continuing this awards program underscores EGLE’s dedication to supporting Michigan communities leading the transition to clean, reliable energy,” said EGLE Director Phil Roos. “With the Renewables Ready Communities Awards, local governments gain new opportunities to strengthen public services, invest in long-term community priorities, and further benefit from hosting the renewable energy projects that will power Michigan’s future.” 

The new phase of the RRCA includes several important changes from the original $30 million state-budgeted phase, including: 

  • An opportunity to increase the award amount if the project developer holds construction of the energy project to certain labor standards. 
  • No stipulations on how the award may be spent by the local government. 
  • A requirement for the intended use of the award to be passed by resolution at a public meeting. 

An award payment can be increased by 25% if the project developer establishes a satisfactory Project Labor Agreement (PLA) for construction. Local governments are encouraged to discuss the likelihood of a satisfactory PLA with the project developer after permitting, since PLA considerations are separate from the local permitting process. 

EGLE allows RRCA dollars to be used for whatever needs a local government might have. These funds have supported a wide range of local priorities, such as township hall repairs, new recreation equipment, roadwork, cemetery upgrades, rooftop solar installations, consulting services for master plan updates, contributions to fire department equipment purchases, and more.  

EGLE appreciates learning how communities put their RRCA payments to use and may ask RRCA communities to participate in follow-up surveys. 

Details about project eligibility, award amount determinations, PLA standards, award use examples, and more are on the RRCA website

Registration is open for a program overview and guidance webinar at 2 p.m. Aug. 25. 

About the RRCA 

The RRCA launched with a one-time allocation of $30 million in Governor Gretchen Whitmer’s fiscal year 2024 state budget. The program announced its first round in October 2024, the second in December 2024, the third in January 2025, the fourth in April 2025, the fifth in June 2025, and the sixth in September 2025. The most recent round, announced in February, closed out the initial $30 million. In all, awards supported 51 counties, cities, and townships. 

The program now continues with $129.1 million in federal funding expected to scale up the RRCA with $90.4 million, launch a pilot to build renewable energy projects on brownfields, strengthen support for local governments through EGLE’s Renewable Energy Academy, support clean energy-related workforce development, and develop a comprehensive strategy to meet the state’s goal of 60% renewable energy by 2035. 

An interactive map on the RRCA webpage shows all the Michigan municipalities with renewable energy projects eligible for awards. Information on the map includes project size, intended use of award funds, and a dashboard summarizing statistics about the award. 

Deploying renewable energy at scale is essential to meeting targets in the state’s MI Healthy Climate Plan. The RRCA program is a key tool to meeting the 60% renewable energy, 100% clean energy, and 2,500 MW storage standards set under the state’s landmark 2023 clean energy laws. Clean energy resources like those supported with this program are helping Michigan achieve a diverse, affordable, and sustainable energy portfolio.

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