Today, 5 Lakes Energy released “Michigan’s Clean Energy Economic Comeback,” a new independent modeling report providing local-level analysis of the economic impact of the state’s new clean energy laws in each of Michigan’s ten prosperity regions.
Following the passage of last year’s historic clean energy package, the modeling projects Michigan’s subsequent economic boom: slashing household energy costs, saving public health dollars, and securing billions in federal investment from the Inflation Reduction Act (IRA) for communities across the state.
The modeling projects that Michigan’s newly enacted clean energy laws will drive significant economic growth and cost-savings in the state, resulting in:
- Lowering household energy bills by $297 a year by 2030, and $713 a year by 2040
- $15.6 billion in federal funding by 2030, and $30.7 billion by 2040
- Saving Michigan $7.3 billion in public health costs by 2030 and $27.8 billion by 2040
The report comes almost a year after Gov. Gretchen Whitmer signed into law the nation-leading clean energy package. With her signature, the laws unlocked a windfall of the unprecedented federal funding available to states through the IRA and are projected to significantly lower energy costs for Michigan families. Together, the new policies and federal investment will recharge Michigan’s local industries and economy.
The report also includes testimonials and case studies from businesses located in each prosperity region. The case studies, collected by the Michigan Energy Innovation Business Council, detail how local businesses will be able to leverage newly available state and federal investments to expand operations and boost quality job growth across the state.
“Last year, Governor Whitmer and the state Legislature secured a clean and prosperous economic future for Michigan. And today, we can see just how investing in the state’s clean energy economy and local businesses will benefit all Michiganders,” said Courtney Bourgoin, Evergreen Action Midwest senior policy and advocacy manager. “Michigan’s new clean energy policies position the state to fully leverage the federal funding available from the IRA to develop a thriving clean energy workforce and save the state billions of dollars in energy and public health costs. Michigan’s clean energy future is bright—and it’s already started.”
“This report shows the strength of Michigan’s clean energy industry and its importance to the state’s economy,” said Dr. Laura Sherman, Michigan Energy Innovation Business Council president. “It is clear that the clean energy industry has been and expects to continue to hire new workers. Importantly, these are high-paying jobs at or above prevailing wage. Thanks in part to federal and state policies, companies across the clean energy industry are planning to expand operations and investments across Michigan.”
“Thanks to Michigan's bold new clean energy laws and nation-leading investments, we’re not only slashing household energy costs but unlocking billions in federal investment through the Inflation Reduction Act and the benefits are undeniable," said Bob Allison, deputy director for the Michigan League of Conservation Voters. "This is about more than just getting Michigan’s fair share of funds—it’s about creating good-paying union jobs and boosting our local economies across Michigan. We are showing the nation that investing in clean energy isn’t just the right thing to do for our environment—it’s the smart choice for our economic future.”
"With nation-leading clean energy policies, Michigan is now at the forefront of the energy transition—attracting federal investment, creating jobs, reducing energy costs, and cutting air pollution across the state. This report highlights how these benefits are reaching every region, while significantly advancing the state's climate goals,” said Douglas Jester, 5 Lakes Energy managing partner.
Read the full report here.