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Solar panels on Plymouth Road in Ann Arbor as seen on January 2013. An even larger installation is expect at the city's airport.

(File photo | The Ann Arbor News)

Ann Arbor might be on its way to becoming the solar capital of Michigan.

The Ann Arbor City Council voted unanimously Monday night to approve a deal with DTE Energy to construct the largest solar array in the state on a 14-acre site at the city's airport.

The decision came following a brief discussion with no objections raised by any of the 11 council members.

"This is an exciting effort," said Mayor Christopher Taylor. "I'm so glad that we're moving forward with it. Having the largest solar field in Michigan is going to be an important thing for the city of Ann Arbor, even if it's just over the line in Pittsfield Township."

The Ann Arbor Municipal Airport is located just south of the city limits. The project still requires site plan approval from the township, as well as approvals from the Federal Aviation Administration and the Michigan Department of Transportation.

The agreement between Ann Arbor and DTE would allow the utility company to use about 14 acres of the city-owned airport property. DTE would be responsible for paying for the solar panels and their installation and maintenance.

It's a 20-year agreement, with 10 one-year renewal options. DTE would pay the city $38 per kilowatt of system capacity, which is estimated to translate to at least $41,800 per year initially, and up to $81,700 per year with full implementation.

In its initial phase, it would be about 1.1 to 1.6 megawatts, according to Matt Naud, the city's environmental coordinator.A potential second phase, Naud said, could bring the total installed capacity up to 2.15 megawatts.

That trumps a 1-megawatt project at the Ford Motor Co. headquarters in Dearborn that has been hailed as the largest solar array in Michigan.

A map showing the location of a proposed solar array at the Ann Arbor Municipal Airport.

Naud said the project furthers several of the city's Sustainability Framework and Climate Action Plan goals. If both phases are constructed, he said, the power from the solar farm could produce enough energy to power about 300 homes.

As the project moves forward to the next stage, with further consideration, Taylor said there might be opportunities for adding a "community solar" element.

"Which would be, I think, a great benefit and give people the opportunity to participate in a meaningful way in renewable carbon-free energy," he said.

Taylor said he's sensitive to the concerns that some people have raised, including one resident who raised concerns Monday night that the solar array might be an eyesore, but he pointed out it's going to be 600-plus feet away from Lohr Road.

"That's a pretty substantial distance in terms of its impact on the neighbors and the people driving on Lohr Road," he said. "And certainly, too, the good people at the FAA are not going to mess around when it comes to the safety of the installation, and we'll certainly comply with anything and everything that they request of us."

Part of the FAA approval process is an in-depth analysis of the potential impact of solar glare, said Matt Kulhanek, the city's airport manager.

"What they do is they take a look at the panels being proposed, and they take a look at the angles being proposed, and they literally put those in a Google Earth simulation with our runway and our approaches where aircraft take off and land," he said.

"And then they run a 365-day simulation based on the sun angle to make sure they're not getting glare or glint to the aircraft, to the tower, to the residential areas."

The 14-acre area where the solar panels would be placed is part of a 41-acre parcel designated on the city's Airport Layout Plan for future non-aviation use. The FAA and MDOT need to approve the release of the land for non-aviation use.

"There's an overall parcel of 41 acres and that's what has been submitted to the FAA for what's called a land release," Kulhanek said. "But the only portion being considered with DTE at this point is the 14 acres, which includes Phase 1 and Phase 2."

City revenue from the agreement would be restricted for use at the airport. Kulhanek said it could help with deferred maintenance at the airport, including hangars.

"It seems, as you read it, a pretty fair agreement," Council Member Mike Anglin, D-5th Ward, said of the deal.

"I would agree with that," Kulhanek said. "In general, I think both sides felt that they are getting good value out of this, and it's a real positive for the community."

DTE spokesman Scott Simons said the solar array would help DTE meet Michigan's renewable portfolio standard that calls for utility companies to get 10 percent of their energy from renewable sources by 2015. Simons said on Monday that details such as the cost of the project and estimated payback rates aren't yet available.

He confirmed that solar panels that DTE installed on Plymouth Road in Ann Arbor are producing energy at 12 to 14 percent of their listed capacity.

Ryan Stanton covers the city beat for The Ann Arbor News. Reach him at ryanstanton@mlive.com or 734-623-2529 or follow him on Twitter.