Economic Impact of Power Outages in Michigan in 2020-21 Estimated Over $4.9 billion
(LANSING, Michigan) — Today, Local Solar for All released research that highlights the devastating economic impact of Michigan's unreliable electric grid. The report, based on data from the federal government and annual reports from the advocacy group Citizens Utility Board of Michigan, outlines the grid’s deteriorating reliability performance and uses it to estimate the economic burden that households and businesses now shoulder.
The average Michigan resident and business experienced 6.9 hours of power interruption in 2020, with the economic impact of power outages in Michigan in 2020 estimated to total over $1.4 billion statewide. However, 2021 saw an even worse - and more expensive - performance, with a negative economic impact of nearly $3.5 billion. The 2021 grid reliability data was noticeably worse than the previous year, with average power interruption climbing to 14.8 hours.
“It is unacceptable that Michigan families and businesses must shoulder the cost of increasingly frequent and severe power outages. The data shows an electric grid that is too expensive. We need to re-imagine it to build in greater resiliency and lower costs for everyone. Our electric grid must address our needs.” says Robin Dutta, Campaign Director for Local Solar for All. "Solutions like local solar and battery storage must be on the table. Future grid improvements should be grounded in distributed clean energy, greater equity, and customer empowerment.”
“It’s no surprise to Michiganders that frequent power outages are costing the state and its residents billions of dollars each year,” said Dr. Laura Sherman, President of the Michigan Energy Innovation Business Council. “We need to open up more opportunities for Michiganders to generate and use their own local clean energy. Greater access to rooftop solar and community solar will reduce costs, improve reliability, and create local jobs.”
Added Vote Solar’s Midwest Regional Director, Jenna Warmuth, "Frequent power outages are more than just an inconvenience for many Michiganders. An unreliable grid can be harmful to health and detrimental to long-term wealth building. DTE customers deserve a grid that supports prosperous and healthy communities; distributed clean energy is the key to making that a reality."
The toll of power outages on Michigan families and children include boil water advisories, school closings, and the prospect of spoiling food. In the most extreme examples, a lack of electricity can lead to deaths when there is severe heat or cold. The report provides a county-by-county breakdown of the 2020 economic impacts, in order to show which regions and communities are shouldering the highest burden.
The report concludes by offering an alternative path forward for Michigan policymakers beyond maintaining the current grid system. Building in risk management and redundancies close to where families and businesses use electricity, through distributed clean energy and battery storage, can help better maintain the electric grid and avoid the staggering costs associated with power outages.
Here is the full report is available:
About Local Solar for All:
Local Solar for All’s mission is to create a safer, more affordable, and equitable way to supply power to our communities. The campaign is focused on promoting the benefits of local clean energy production and encouraging federal and state governments to accelerate the development of a more decentralized, distributed energy system. The campaign members include solar energy and storage companies, clean energy industry groups, and non-profit organizations. For more information, visit www.localsolarforall.org.
