Supporters of Clean Wisconsin are probably familiar with many of the environmental benefits brought about by our transition to cleaner forms of energy. Fewer people know about the economic benefits clean energy projects offer to local governments.
Utility aid is a form of shared revenue that is received by communities hosting energy projects. It is calculated using a formula based on the size of the energy project, with $5000 per megawatt (MW) split between the hosting town, village or city and the hosting county. For example, a 150 MW solar project would generate $750,000 in annual payments split between the town and county. Over the anticipated 30-year life of a project, that would be $22.5 million in revenue.
This money goes straight into the local budget, and it’s up to community leaders to decide the best use for it. They could invest in emergency services, like buying a new fire truck or an ambulance. They could put real resources into fixing, maintaining, and upgrading roadways throughout their community. They can use the guaranteed funding to secure capital and grants to fund transformative projects, such as broadband expansion. And they can always choose to lower taxes if that is what their constituents want.
With this crucial role in helping deliver real benefits to communities hosting clean energy projects, utility aid has been a focus of Clean Wisconsin’s Rural Energy Campaign. We’ve researched case studies and developed resources to help inform communities about the benefits
In the Town of Leroy, home to the first wind farm in the state of Wisconsin, town leadership used their very first utility aid payment to lower taxes in their town. In Calumet, the town board used the utility aid received from hosting Blue Sky Green Fields Wind Farm to secure a low-interest rate note that allowed them to repair five miles of damaged roads in one year. On the shores of Lake Michigan, the Town of Two Creeks has used funds from Two Creeks Solar and Onion River Solar to not only fix roads, but to upgrade them for heavier loads.
“If your town is the shape ours was in, this is a gift.” say Town of Calumet Board Chair Don Breth about the opportunities offered to his community through utility aid. This sentiment is shared by many leaders throughout the state. “We were struggling, and now we’re not,” another municipal leader made clear.
The opportunities for communities across Wisconsin are clear. At a time of increasing expenses and strained budgets, additional revenue in the form of utility aid may be an important pathway for communities to further invest in themselves and truly do more.
