Detroit City Council approved a pair of 35-year contracts to shift the development of a neighborhood solar initiative to DTE Energy after city officials said another vendor on the project could no longer do the job.
The move reassigns three solar sites from Boston-based Lightstar Renewables to DTE — which already manages two other locations — and allows the company to continue energy-efficiency upgrades. Lightstar Renewables was initially responsible for building out solar fields in the State Fair, Gratiot Findlay and Houston Whittier/Hayes neighborhoods as part of the city’s broader plan to generate clean energy. But in an unexpected twist, Lightstar said the company could no longer develop solar after it was sold to a private equity firm, according to city officials.
The news was a “complete shock,” said Trisha Stein, senior director of strategic initiatives for the mayor’s office.
The city had been in communication with Lightstar for months to determine how much a contract would cost. The company had never committed to a price but said last fall they would need more money due to higher supply costs, equipment and contractors, Stein said.
After lengthy deliberation during a special session on Tuesday, the council voted 6-3 to move the project over to DTE. Council members Angela Whitfield-Calloway, Denzel Anton McCampbell and Gabriela Santiago-Romero voted no.
“I always believe that when you go into an area, you make it better than you left it, and that’s not going to be the narrative in 35 years. … It will probably be deserted,” said Whitfield-Calloway, who has long opposed the project.
The $130 million solar neighborhood initiative — which kicked off in 2023 under former Mayor Mike Duggan — aims to turn about 165 acres of disinvested neighborhoods into solar arrays to offset how much energy is used at 127 municipal buildings across Detroit. The solar project is a part of the city’s broader sustainability goals and includes energy-efficiency upgrades to 209 nearby homes, ranging from $15,000 to $25,000.
The five neighborhoods that are part of the plan include: Gratiot Findlay, Greenfield Park, Houston Whittier/Hayes, State Fair and Van Dyke/Lynch. Feedback from community members on Tuesday was mixed. While one State Fair resident said the process had been a headache, another person said she received new appliances and home improvements and was grateful.
The contract change allows the city to continue the work it started before a July 4 federal tax credit deadline and ensures the project doesn’t incur any more costs, city officials told council members earlier this month.
The solar project would have “no net fiscal impact” on the city’s fiscal year 2027 budget, which starts July 1, according to a June 8 fiscal analysis from the office of the chief financial officer. The city identified $78,960 in savings.
Future costs would need to be evaluated and budgeted annually and could fluctuate. The projected net cost for fiscal year 2028 is $477,606; about $3.2 million for fiscal year 2029, and $3.3 million for fiscal year 2030. The project is expected to be phased in over time.
District 3 Council Member Scott Benson said the issue isn’t about DTE but rather improving the lives of Detroit residents.
“When you think about someone’s home that was worth $10,000 that has received $40,000 in improvements, they’re going to see their quality of life improve,” he said. “For people who have their homes purchased within this footprint and will now be living in another area of the city of Detroit, they’ve had a life-changing investment in their lives.”
Stein said 32 owner-occupied properties were sold voluntarily and homeowners received $125,000, on average, on those sales. Landlords got an average of $60,000 for their properties.
Detroit Free Press reporter Dana Afana contributed.
