Introducing the SEU

How does the Sustainable Energy Utility work?

As a municipal utility, the Ann Arbor SEU could deliver an array of services and benefits to help the community save energy, adopt clean energy options, and improve health, including:

• ​Improved energy reliability and resilience via the installation of solar and energy storage systems on homes and businesses.
• Sustainable heating and cooling through the installation of networked geothermal systems.
• Indoor air quality improvements through appliance replacement programs.
• Robust energy waste reduction (efficiency and weatherization) programs that save residents money while improving comfort, safety, and health.
• Microgrids or the sharing of solar energy between neighboring households and businesses.
• Community solar programs that provide residents the benefit of solar (and other energy systems) installed in shared areas of the city.
• Energy justice initiatives to ensure that everyone in the community has the benefit of the clean energy economy.

Where does renewable energy come from?

Energy sources are all around us. The Sustainable Energy Utility uses modern, renewable, local energy from rooftop solar, batteries and geothermal heating and cooling from the ground.

Who is eligible to join the Sustainable Energy Utility?

All residents of the city of Ann Arbor are invited to join the Sustainable Energy Utility! This includes homeowners, renters, landlords, property owners and businesses.

Why join the Sustainable Energy Utility?

An SEU is an innovative municipal utility that focuses almost exclusively on energy generation at the point of energy use. Because of this, the Ann Arbor SEU will be:

• Resilient – Through a diverse mix of energy generation and the use of energy storage, subscribers to the SEU will still have power even when disasters disrupt the traditional energy grid.
• Reliable – Focusing on generating energy at the source of use minimizes the need for distribution systems (e.g., poles and wires), which are currently the most vulnerable part of the existing energy system. This means that SEU generated energy will be more reliable (and resilient) than energy from a traditional utility.
• Clean – The SEU will only generate power from renewable energy sources such as solar and geothermal systems. This means that every electron provided by the SEU will be from a clean energy source – one generated in our own community.
• Local – The SEU is all about generating energy locally – in our community, on our roofs, in shared spaces, and under our feet. You can't get more local than that!
• Supplemental – The SEU does not replace the DTE grid. Instead, it supplements it, ensuring that residents have more options in how they get their energy.
• Optional – Residents have a choice to participate (or not) in the SEU. No one will be required to take service from the SEU but everyone will have the choice to participate in at least some of the SEU's offerings. By providing choices, we are diversifying our energy options and ensuring everyone has the opportunity to enjoy the benefits of clean, healthy energy systems.
• Affordable – The proposed SEU provides access to clean energy at rates cheaper than what we currently pay for dirty electricity and offers energy storage solutions for less than the average cost of a whole-house generator, helping to make clean energy options affordable to more residents.
• Community owned – The SEU is a municipal utility and, as such, will be a community-owned asset.

Sustainable Energy Utility timeline

​December 2024 - January, 2025 - Drafting of changes to the Ann Arbor Code of Ordinances (Code of Ordinances | Ann Arbor, MI | Municode Library) took place with a final draft under review by the SEU Steering Committee.  Development of a job description for Director of the SEU was prepared and reviewed by the Steering Committee.  A job posting will be made in February, 2025 after approval by the City Administrator and Director of Human Resources and Labor Relations.

November, 2024 - Section 15.10 of the Ann Arbor City Charter (PDF) was added to address the Creation and Operation of the Sustainable Energy Utility.  Also, in November, an SEU Steering Committee was formed consisting of City staff and expert consultants.