A first-of-its-kind municipal utility in Ann Arbor has begun installing solar and battery systems for residential customers, marking a significant step toward localized, renewable energy infrastructure.
The Ann Arbor Sustainable Energy Utility, or A2SEU, launched its pilot phase last week, deploying solar-plus-storage systems across approximately 150 homes in 2026, with plans to expand to as many as 1,000 homes by 2027.
The initiative aims to improve grid reliability, lower energy costs and support the city’s broader clean energy goals through distributed generation and storage.
The pilot is concentrated in Ann Arbor’s Bryant neighborhood, an area identified for having a higher proportion of energy-burdened households. Some residents spend up to one-third of their income on utility bills, according to program data.
“All of the work in this project is focused on reducing total energy costs,” said Jordan Larson, engagement innovator with the city’s Office of Sustainability and Innovations.
The systems combine solar panels with battery storage, allowing households to use energy generated during the day and store excess power for use during evening and overnight hours. The installations are expected to improve resilience during outages while reducing dependence on the traditional grid.
The systems are being supplied by FranklinWH and installed in partnership with Michigan Solar Solutions, Homeland Solar and Oak Electric Service. Over time, the distributed systems are expected to form a virtual power plant supported by Texture’s energy management platform.
The A2SEU program stems from a 2024 voter-approved referendum in which nearly 80% of residents supported the creation of a city-owned utility focused exclusively on renewable energy solutions.
“Unlike a traditional utility, we are only going to offer renewable energy products, including solar and geothermal that will come later to this neighborhood and hopefully all around the city,” said Shoshannah Lenski, A2SEU’s executive director.
Future plans include expanding into microgrids, geothermal heating and cooling systems, and broader energy equity initiatives for the city’s roughly 125,000 residents.
While the program is optional and currently supplements existing utility services, it represents a potential shift toward greater local control of energy systems. DTE Energy, which currently serves the region, said it supports the city’s sustainability goals and noted that similar voluntary programs can complement broader decarbonization efforts.
“When coupled with DTE’s planned investments in clean energy, these voluntary, fee-based programs help accelerate economy-wide decarbonization while maintaining reliability and affordability,” said Ryan Lowry, a spokesperson for the utility.
Energy storage plays a central role in the program’s design. By reducing reliance on traditional distribution infrastructure such as poles and wires — often the most vulnerable parts of the grid — A2SEU aims to enhance overall system resilience.
However, the initiative comes amid ongoing debate about the future of energy governance in Ann Arbor. A citizen-led group is pushing for a ballot initiative that could begin the process of transitioning to a fully municipal utility system. DTE Energy has opposed the effort, citing estimates that such a move could cost up to $1 billion upfront and increase energy bills by 30% to 40%.
For now, the solar-plus-storage pilot represents a measured first step toward a more decentralized and resilient energy model — one that could serve as a blueprint for other cities exploring similar approaches.
Originally reported by Brian Martucci in Utility Dive.
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