Title
Resolution to Approve a Purchase Order with DTE Energy (DTE) to Conduct Updated Interconnection Studies Regarding a Solar Energy Facility at the Wheeler Center (not to exceed $90,000.00)
Memorandum
In 2020, Ann Arbor City Council authorized the staff to move forward with exploring the feasibility of a large solar installation at and around the capped landfill (known as the landfill solar project or the Wheeler Solar Park). The project team began working and neared completion in early 2022, with a plan to present the final design to City Council for formal authorization to build by mid-2022.
Within weeks of presentation of the final plan to Council, however, the U.S. Department of Commerce initiated an investigation into whether significantly higher tariffs should be paid on most of the solar panels purchased in the US. The impact of this investigation was swift - solar panel prices rose significantly, and significant supply chain and material acquisition challenges worsened. These changes made it impossible to move forward with the landfill solar project - too many variables were in question to recommend the project, and prices had increased significantly. Given this, the project team made the decision to wait on the results of the investigation before determining how to proceed. In spring of 2023, the Department of Commerce issued their findings, which confirmed higher tariffs on most solar panels would be charged beginning in June of 2024. With these findings, the Ann Arbor and DTE team re-instated our meetings on the landfill solar project and began exploring how the investigation had impacted costs.
The results showed that pricing was significantly higher than where it had been before the investigation. In light of this, Ann Arbor City Council, the City Administrator's Office, and Ann Arbor's state delegation began working to secure State funding support to help offset the increased costs. This work was successful, with the City securing $5,000,000...
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