About the SEU

A: Check out this animated explainer video (just over 2 minutes in length) for a brief, easy-to-understand introduction to how the A2SEU works.   

The A2SEU, a startup utility authorized by Ann Arbor voters in 2024 and created in 2025, is offering different systems in phases. The first phase, which launched in a limited pilot area in 2026 and is expanding citywide in 2027, consists of solar photovoltaic (PV) energy and whole-home battery systems to store additional solar energy that’s generated. Additional services and options are planned for future phases. 

The city finances, owns, installs and maintains the systems at customers’ own homes, businesses or other properties. The selected A2SEU systems will be tailored to serve the customers’ own, unique, onsite energy needs. Customers remain connected to their current energy utility (in most cases, DTE), for any power needs over and above the A2SEU system.

For solar systems, the A2SEU will provide multiple options for system size/number of solar panels to best suit customers’ energy usage needs and available roof space. Rates charged will depend on the size of system selected and the configuration of the system (i.e., solar-only –or– solar and battery).

A: As a municipal utility, the A2SEU will be positioned to deliver even more services to further help the community adopt clean energy, improve energy resilience and reliability, save money and improve health and comfort in our homes and businesses. These services include:

• Geothermal systems for heating and cooling
• Microgrids (sharing of solar energy between neighboring households and businesses)
• On-bill financing (loans) for customers’ home energy improvements
• Energy efficiency, beneficial electrification, EV charging and other clean energy solutions

A. Yes, solar energy is viable in Ann Arbor! There are already more than 1,500 residential solar installations in the city, and more than 17 megawatts (MW) worth of solar capacity installed citywide across residential, commercial, municipal and other systems. Michigan actually receives more solar irradiance, or intensity, than Germany, which produces nearly 20% of its total electricity from solar power.

Rooftop solar systems produce less power in winter and on cloudy days, so A2SEU customers remain connected to and purchase energy from the traditional grid when their solar system does not produce enough. A2SEU systems with whole-home batteries can also meet energy needs via the stored power in their batteries.

A: The City of Ann Arbor / Ann Arbor Sustainable Energy Utility has only gone door to door, so far, in the Bryant neighborhood where we are conducting our 2026 pilot. If we go door to door in the future, we will always carry City of Ann Arbor identification and carry official City of Ann Arbor/A2SEU literature.

Should someone claim to be from the city or the A2SEU, please take proper safety precautions, do not open the door to the unfamiliar and unexpected visitor and do not let them inside your home. If you feel threatened or in danger, call 911.

A: In the Bryant neighborhood, location of the 2026 pilot program, A2SEU services are available now. Citywide rollout will begin in 2027. Express interest — commitment free — for updates. 

As a homeowner — A: If your home is within city limits, you are eligible to participate. 

As a renter — A: In Ann Arbor, half of households are renter-occupied. Under the A2SEU's model, while the property owner must agree to the service, either the property owner or the renter can be responsible for the bill. Many renters in the city have expressed interest in getting A2SEU service at their homes and many property owners/landlords are committed to offering this to their tenants! Importantly, given that the city owns the equipment installed by the A2SEU, all upfront costs of system installation and maintenance are covered. As a result, there is greater incentive for property owners to say yes if tenants are interested in participating in the A2SEU. We encourage you to discuss the possibility with your landlord! 

As a property owner/landlord — A: If your property is within city limits, you are eligible to participate. Under the A2SEU’s model, either the property owner or the renter can be responsible for the monthly bill. The city continues to own any systems installed by the A2SEU, covers all upfront costs of system installation, and is responsible for maintenance and repair. The customer, whether a property owner or tenant, is responsible simply for a monthly utility bill for energy usage. 

As a resident in a co-op, condo association, townhouse community, or other multi-family property. A: Yes. The A2SEU is preparing to serve all kinds of facilities, depending on the association or community’s own bylaws and rules. If your community is interested, please encourage residents to sign up on the A2SEU Expression of Interest form, and feel free to reach out via email to seu@a2gov.org to share more information about your community/association.

As a business owner — A: The A2SEU is able to serve commercial energy needs with systems that are best suited to your business. Please complete the interest form today, and when service is available, you’ll be invited directly to a more detailed intake form. You may also reach out directly to seu@a2gov.org for a conversation about your facility.

A: The A2SEU is excited to serve renters (who make up about 50% of Ann Arbor residents) and we’re already doing so through the pilot operations in the Bryant neighborhood. For multifamily properties such as apartment buildings, duplexes, townhomes with shared roofs, etc., there may not always be enough physical roof space to serve every resident. In some multi-floor buildings, for example, rooftop solar might provide energy for the common areas, but not the energy used in each apartment. That’s still clean energy supplementing the building's general energy needs! The A2SEU will also consider carport or ground-mount solar on properties where that’s a good fit. We handle each expression of interest individually so we can assess how the A2SEU would work best in each situation.

The A2SEU model provides the flexibility for either the property owner or the tenant to be the “customer” responsible for the monthly A2SEU energy bill. In many cases, tenants are responsible for utility bills, so tenants would pay the A2SEU bill and also benefit from the lower DTE bill (due to purchasing less energy from the grid).

At its most basic, the A2SEU’s model requires no upfront cost from the property owner nor tenant to have the solar energy system installed, eliminating a downside or barrier to participating — especially if they know that their current (or future) tenants are eager for the service. Be sure to let your landlord or property manager know of your interest in the A2SEU, and let us know you’ve done so at seu@a2gov.org so we can follow up in case there are questions!

A: The landlord may require, as part of the lease, that the tenant is responsible for the A2SEU bill (just as they may be responsible for other utility bills), or the landlord may cover the A2SEU bill themselves. Make sure you understand who is responsible for this bill.

A: Solar panel efficiency has improved in recent years, so you might be surprised how much energy a solar system can produce even under partially shaded conditions, or on east-, west- or even north-facing roofs. A thorough solar assessment will be performed to determine how much sunlight your home receives and how much value the solar production will provide to you. The A2SEU will not set minimum limits for solar production. YOU decide whether the system makes sense for you based on the information we’ll provide.

A: The home’s roof needs to be structurally sound to support the solar panels, and we generally recommend shingles be less than about 10 years old to reduce the likelihood of needing repairs during the solar panels’ lifetime. Solar panels, once installed, can actually help extend the life of the shingles under them by protecting them from UV degradation. If you’re thinking about going solar with the A2SEU, it’s a good time to get your roof evaluated, so you can be ready to go.

A: Register interest in receiving A2SEU service at your Ann Arbor home or business. This is an expression of interest and not a commitment. You will receive information from the A2SEU in fall 2026, as detailed plans are developed to launch citywide in early 2027.

A: As of 2027, the A2SEU will be offering residential solar systems and home battery storage systems for Ann Arbor residents. Exact equipment specifications, system sizing and installation locations will depend on the home/structure/building. A2SEU staff will assess and provide an explanation based on recommendations best suited to each individual circumstance.

A: At this time, the A2SEU is preparing plans for 2027 offerings and is considering storage integrated with pre-existing solar as a service. This may not be available immediately in 2027. Please stay tuned for a decision by early 2027.

A: At this time, the A2SEU is focused on installing new systems for solar generation on households and other facilities currently without. And while the A2SEU plans to deploy geothermal systems as a sustainable heating and cooling solution for participating homes and businesses, these services are unlikely to be available in the early phases of development. The A2SEU is, however, currently in the engineering-design phase for our first pilot geothermal system in the Bryant neighborhood.

A2SEU service offerings are anticipated to expand over time. This could include, as soon as in 2027 or 2028, the potential to add a battery for whole-home backup to existing, privately owned solar systems. On-bill financing for energy efficiency and electric appliance upgrades are anticipated to be offered through the A2SEU, as well.

The A2SEU will continue to grow and remain on the cutting edge of technology. Another innovation we're exploring is the ability to build out strategic distribution (i.e., poles and wires) or microgrids to enable energy sharing across properties. When you sign up on the expression of interest form, you'll begin receiving brief update emails to keep up on our progress!

A: The A2SEU has worked with an expert consulting firm on the highly specialized process of rate design. The A2SEU’s executive director will propose a rate schedule for SEU services to the City Council. These rates will then be evaluated and adopted by the Council before being implemented. Watch this video (segment begins at 1 hour, 04 minute mark) to see the presentation about how pilot rates were developed for the 2026 Bryant neighborhood pilot and the A2SEU’s service of existing municipal solar systems on city facilities. 

A: Rates are still being determined for customers in Ann Arbor outside the Bryant neighborhood pilot. The A2SEU anticipates rates to be shared in late fall 2026.

Rates will be fixed (non-metered) based on the system selected (size of the solar array and whether a battery is selected). The fixed monthly fee will entitle the participant to use all the energy that the system produces and/or stores.

Although non-metered, the A2SEU will be able to tell residents approximately how much energy their system is expected to generate each month/year, and therefore, the estimated/approximate rate per kWh.

A: There are no upfront expenses for A2SEU customers. Customers are only responsible for a monthly bill for the use of the energy systems installed at their property.

A: If you have signed up on the expression of interest form, you will begin receiving a brief monthly newsletter with A2SEU status updates to keep you informed about when we’re ready to serve you. We also anticipate beginning to reach out to invite residents from the interest form to complete a more formal intake process. This is likely to take place incrementally from fall 2026 through spring 2027.

A: The A2SEU is a supplemental utility and does not replace DTE or other energy utilities. Any additional power needs that are not met by the A2SEU system will be met by your existing utility provider. While this would mean two separate bills each month, your existing-provider bill will decrease as you purchase less energy from them. We are working hard to offer rates where the cost of your total energy bill will be similar to or less than what you’d pay without the A2SEU.

A: At this time, the A2SEU is a supplemental utility and does not fully replace DTE.

A: You can pay your bill online, by phone, by mail or in person. Auto pay options will be available. The A2SEU is currently implementing a billing software solution that will be ready in early 2027.

A: The City of Ann Arbor will continue to own any A2SEU equipment, just like other utilities own power plants or pipes. This means the A2SEU will take care of all maintenance. If any issues come up with the equipment or service, contact the city’s customer service team at 734.794.6000, or seu@a2gov.org. In case of an emergency, call 911.

A: As an optional utility, you may terminate service and request removal of the solar system and/or battery storage system at any time by giving at least 60 days advance, written notice and subject to any applicable removal fee (see regulations for more details).

A: As with other utilities, the customer would need to request service to be stopped and/or their name to be removed from the account (with at least 60 days advance, written notice). Whether due to sale of a home or otherwise, if an A2SEU customer vacates a property, and the next occupant does not opt in for service, the A2SEU would uninstall and remove the equipment, subject to any applicable removal fee (see regulations for more details).

A: The A2SEU plans to deploy geothermal systems as a sustainable heating and cooling solution for participating homes and businesses. However, these services are unlikely to be available in the early phases of development. We are currently in the engineering-design phase for our first pilot geothermal system in the Bryant neighborhood.

A: While microgrids, or distribution wires, can help the A2SEU optimize solar generation, our first and current priority is making clean, affordable and resilient energy available across the city as quickly as possible, to benefit to as many people as possible. The A2SEU is exploring this use case, and it is likely at least a few years away before deployment. Small-scale pilots, however, may occur sooner.