Michigan’s Largest Solar Energy System Will Take An Estimated 36.25 Years To Pay For Itself

Ford, Detroit Edison and Xtreme Power are constructing Michigan’s largest solar energy system at a cost of $5.8 million ($3 million from DTE and $2 million from the state of Michigan). Proponents of the system are estimating that this system will save Ford $160,000 per year in energy costs. Via Ford press release:

The combined systems are expected to give Michigan Assembly the largest solar power array in Michigan and save an estimated $160,000 per year in energy costs. Installation of the system begins later this year.

“With this solar energy system, we will be able to gain vital understanding about the integration of renewable power, smart-grid technologies and energy storage at an industrial facility,” said Jim Tetreault, Ford vice president, North America Manufacturing. “This project is a part of the transformation of Michigan Assembly from a large SUV factory to a modern, flexible, and sustainable small car plant.”

SolarCurrents and the future of sustainability in Michigan

Ford will work with Detroit Edison to install a 500-kilowatt solar photovoltaic panel system at Michigan Assembly. The system will be integrated with a 750-kw energy storage facility that can store two million watt-hours of energy using batteries – enough to power 100 average Michigan homes for a year. Xtreme Power of Austin, Texas, is supplying its Dynamic Power Resource on-site energy storage and power management system.

The solar energy installation is part of Detroit Edison’s pilot SolarCurrents program that calls for photovoltaic systems to be installed on customer rooftops or property over the next five years to generate 15 megawatts of electricity throughout Southeast Michigan.

The Michigan Assembly project is made possible by a $3 million investment by Detroit Edison’sSolarCurrents program, a $2 million grant from the Michigan Public Service Commission in support of the state’s smart-grid initiative, and approximately $800,000 from Ford.

If the system operates as advertised and requires no maintenance, the system will pay back the initial investment in an optimistic 36.25 years (exuding opportunity costs).

This will work about as the $125 billion solar power project that produces 0.25% of Germany’s electricity.

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