Share or view as a webpage [ [link removed] ]  I  Update preferences [ [link removed] ]






EGLE Main GovD banner




*FOR IMMEDIATE RELEASE:* 
Jan. 16, 2026
Jeff Johnston, EGLE Public Information Officer, [email protected], 517-231-9304

*Three awardees will split $2 Million in Unlocking Elective Pay Grants through MI Healthy Climate Challenge*

The Office of Climate and Energy (OCE) in the Michigan Department of Environment, Great Lakes, and Energy (EGLE) today announced three awardees for the second round of the MI Healthy Climate Challenge (MHC Challenge) [ [link removed] ].

The MHC Challenge is a series of competitive grants designed to accelerate clean-energy deployment and unlock new investment across the state. The awardees will share a total of $2 million to help nonprofits, public institutions, and other tax-exempt entities access federal clean-energy tax credits through Elective Pay [ [link removed] ], also known as Direct Pay.

“These grants are about removing barriers,” said EGLE Director Phil Roos. “Elective Pay represents an unprecedented opportunity for Michigan’s schools, nonprofits, and local governments to save money, cut emissions, and deliver real benefits to their communities.”

The selected organizations will help drive economies of scale, provide technical assistance, and develop financial tools to ensure eligible entities can fully leverage the value of Elective Pay tax credits. Project descriptions are based on proposals submitted during application and may be refined as grant agreements are finalized. Awarded entities are:


* *Michigan Saves-Elective Pay Lending Program:* Michigan’s statewide green bank, Michigan Saves [ [link removed] ], will provide capacity building services for Elective Pay-eligible projects, offering comprehensive technical assistance to ensure a project is capital-ready. Support will include feasibility assessments, engineering and compliance guidance, and financial-structuring services. Michigan Saves will also develop a statewide financing and market-building strategy for scaling geothermal investment, leveraging Elective Pay, including identifying viable business models, financing mechanisms, and supply-chain coordination, workforce needs, and organizing demand.
* *Justice Climate Fund (JCF)-Michigan Elective Pay Accelerator:* The national nonprofit JCF [ [link removed] ] will partner with multiple lenders to design and deploy a specialized Elective Pay bridge loan product. Grant funds will be used to buy down interest rates and bundle eligible projects so they are ready for financing. JCF will also provide legal and technical assistance for Elective Pay compliance and filings, while coordinating access to a full suite of loan products through Michigan-based and national lending partners.
* *Michigan Schools Energy Cooperative (MISEC)-Michigan School Decarbonization Initiative:* Lansing-based MISEC [ [link removed] ] will work with a diverse set of school districts to design and advance pilot building decarbonization projects including geothermal, solar, battery storage, electrification, and energy efficiency upgrades, supported by detailed financial and community benefit analyses. To help schools across Michigan adopt similar upgrades, MISEC will create a practical implementation tool kit, host webinars and workshops, and conduct targeted outreach to build a pipeline of future projects.

“These grants don’t just fund individual projects, they build the systems that make dozens more possible,” said Alessandra Carreon, chief climate officer in the OCE. “By investing in this kind of statewide infrastructure, we’re setting Michigan up for sustained, long-term clean-energy growth.”

*About Elective Pay *

Elective Pay allows eligible tax-exempt entities, such as schools, local governments, houses of worship, and nonprofits, to receive certain federal clean-energy tax credits as direct cash payments. This mechanism unlocks substantial savings for projects that reduce energy costs and improve community resilience. Eligible project expenses can go toward solar installations, energy storage, geothermal systems, and electric vehicles and charging infrastructure.

Collectively, the three awardees will help Michigan organizations navigate the Elective Pay process, develop capital-ready projects, and access the financial benefits available to them. Their efforts aim to spur additional Elective Pay activity statewide by expanding technical expertise and sharing practical resources.

*About the MI Healthy Climate Challenge*

The MHC Challenge will continue offering grant opportunities to build momentum for clean energy initiatives across Michigan. Future competitions will focus on expanding access to green lending and advancing industrial decarbonization. While eligibility will vary by competition, the MHC Challenge is structured to support broad participation, including local governments, community lenders, schools, faith-based organizations, nonprofits, and climate solutions providers.

To stay informed about future competitions launching throughout 2025, sign up for the MI Healthy Climate Bulletin [ [link removed] ].

###

________________________________________________________________________









 

People with disabilities may request this material in an alternate format by emailing [email protected] or calling 800-662-9278. 

EGLE does not discriminate on the basis of race, sex, religion, age, national origin, color, marital status, disability, political beliefs, height, weight, genetic information, or sexual orientation in the administration of any of its programs or activities, and prohibits intimidation and retaliation, as required by applicable laws and regulations.

 

Instagram [ [link removed] ] Linkedin [ [link removed] ] X [ [link removed] ] YouTube [ [link removed] ] MiEnvironment [ [link removed] ] GovDelivery [ [link removed] ] Facebook [ [link removed] ]

If you wish to no longer receive emails from us, 
please update your preferences here:
Manage Preferences [ [link removed] ]  |  Help [ [link removed] ]

Need further assistance?
Contact Us <[email protected]>  |  Provide Feedback <[email protected]>

________________________________________________________________________

This email was sent to [email protected] using GovDelivery Communications Cloud on behalf of: Michigan Department of Environment, Great Lakes, and Energy · Deborah A. Stabenow Building · 525 West Allegan Street · PO Box 30473 · Lansing, MI 48909 · 800-662-9278
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;} table.govd_hr {min-width: 100%;} p, li, h1, h2, h3 { overflow-wrap: normal; word-wrap: normal; word-break: keep-all; -moz-hyphens: none; -ms-hyphens: none; -webkit-hyphens: none; hyphens: none; mso-hyphenate: none; }