MI Clean Energy Projects Await Clarity on Federal Tax Credits

By Chrystal Blair

Trenton is set to become home to the region's largest battery storage facility but federal policy changes might change how it's funded.

The DTE Trenton Channel Energy Center would use clean energy tax credits from the Inflation Reduction Act but proposed federal cuts threaten the tax credits.

The plant is expected to store enough energy to power 40,000 homes for a day, create union jobs and help offset the area's economic loss from the 2022 closure of the Trenton Channel Power Plant.

James Harrison, director of renewable energies for the Utility Workers Union of America, said he has three generations of family history at the Trenton plant and is concerned about the potential effects of the proposed cuts.

"They're going to probably move forward with projects," Harrison explained. "The difference is going to be whether or not ratepayers are going to be on the hook to pay for that, or whether or not there's an opportunity to utilize tax credits to offset the cost to ratepayers."

In Michigan alone, more than 100 utility-scale projects are in development which could use the tax incentives. Those who want to eliminate the tax credits said the energy sector should compete without federal aid, arguing tax breaks add to the national debt and unfairly favor certain industries.

The Trenton facility is expected to start operations in mid-2026. The battery storage facility is also expected to generate more tax revenue than the former coal plant, which would benefit schools and public services in the Trenton/Wayne County area.

Harrison shared how his family history at the plant site colors his personal feelings about the new facility.