A new study reveals that clean energy laws and funding are driving job creation and economic growth in Michigan.

Source Post: Renewable Energy World & Author Kyle Davidson from Michigan Advance.

More than a year after 5 Lakes Energy highlighted $7.8 billion in federal investments for Michigan’s clean energy transition, the consulting firm has updated its analysis following new state laws aligned with Gov. Gretchen Whitmer’s climate plan. The Michigan Legislature recently approved ambitious clean energy policies, including a target for 100% clean energy by 2040 and enhanced energy waste reduction standards. The Michigan Public Service Commission (MPSC) has also been empowered to approve large-scale renewable projects.

The new report estimates significant benefits from these policies, including average savings of $297 per year on energy bills by 2030 and $713 by 2040 for Michigan families. It also forecasts that Michigan will attract $15.6 billion in investments from the Inflation Reduction Act by 2030, rising to $30.7 billion by 2040, and will cut its greenhouse gas emissions by 65% in six years, and 88% by 2040. Additionally, the state is expected to save $7.3 billion in public health costs by 2030, with total savings reaching $27.8 billion by 2040.

The report details job creation and economic impacts across ten regions in Michigan, projecting significant job growth and GDP increases by 2040. For example, the Detroit metro area is expected to see 24,073 new jobs annually by 2030 and a GDP increase of nearly $3 billion each year.

Further recommendations include enhancing state policies to support clean energy growth, reducing household energy costs, and developing workforce training programs for transitioning workers. The report underscores the importance of ensuring that clean energy benefits extend to underserved communities and advises lawmakers to consider cumulative impact assessments when retiring existing energy assets and constructing new projects.

Telkes’ Take: It's exciting to see the impact of Michigan's ambitious clean energy policies, particularly the new report detailing how the state is capitalizing on $7.8 billion in federal investments. The comprehensive analysis highlights not only the environmental benefits but also the significant economic gains, including job creation and GDP growth across various regions.

The projected savings for Michigan families—up to $713 annually by 2040—combined with a $7.3 billion reduction in public health costs, truly underscore the value of transitioning to clean energy. The report’s breakdown by region reveals how diverse areas of the state will benefit, with substantial job creation and economic boosts in both urban and rural locales.

As Michigan continues to lead in clean energy, it's crucial to ensure that policies are inclusive and that the benefits of this transition reach all communities. Workforce training and cost reduction for households are essential steps in making the clean energy transition equitable and sustainable.

Great job to everyone involved in shaping and implementing these policies. It’s clear that Michigan is setting a strong example for the nation on how to effectively integrate clean energy while fostering economic growth and improving public health.

For those interested in supporting or learning more about clean energy initiatives in Michigan, Telkes is here to help navigate these exciting developments. Let’s work together to drive forward this clean energy revolution!