See how much it will cost to install solar panels for your home in Michigan
Our estimates used by
Solar power in Michigan
Last fact-checked on June 21, 2023, by Catherine Lane
Michigan has some decent incentives to offer for solar customers. With state-wide net metering, property tax exemption, and a renewable portfolio standard, going solar in Michigan has great potential to save money.
These incentives and the 30% federal tax credit make solar a worthwhile investment.
Compare solar quotes from the top solar companies in Michigan
Michigan solar power facts
$2.62 watt
Average cost: 5kW solar power system
?8 Years 11 Months
Average payback time
$37,539
Average lifetime savings
?6¢ kWh
Levelized cost of solar energy
25¢ kWh
If you don't get solar
?9,062 kWh
Annual power production
Cash flow graph based on cash purchase of a 7.98kW system
This 7.98kW system would offset 100% of your energy usage if your typical monthly bill in Michigan is $108, however, your situation may vary so try our solar calculator to get a result tailored to you.
2
Solar companies in Michigan that provide pricing through the Solar-Estimate marketplace.
How much can solar panels save you in Michigan
Average total cost of solar panel installation in Michigan
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $5,691 | $6,146 |
| 4kw | $7,476 | $8,074 |
| 5kw | $9,170 | $9,904 |
| 6kw | $10,836 | $11,703 |
| 7kw | $12,397 | $13,389 |
| 8kw | $13,944 | $15,060 |
| 9kw | $15,372 | $16,602 |
| 10kw | $16,800 | $18,144 |
How much do solar panels cost in Michigan?
$2.62 per watt
Cash purchased solar system
Before 26% solar tax credit
$2.82 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Michigan?
The advantage of installing solar panels in Michigan is the state-mandated net metering requirement. Utilities must offer credits to their customers for excess energy generated by their solar systems. These credits are equal to the avoided cost rate of electricity. Also, the property tax exemption prevents you from paying more money on your taxes when you install solar panels at your home.
The disadvantage of installing solar panels in Michigan is that there aren't really any rebates offered to customers. Also, Michigan's Inflow/Outflow net metering structure results in lower savings than other states providing net metering. Michigan also doesn't receive as much sunshine as some other states, so a solar system here will produce less than a system in a sunnier state, like Arizona.
Best solar companies in Michigan
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Find local information for cities in Michigan
Compare solar quotes from the top solar companies in Michigan
How much electricity will solar panels produce in Michigan
Solar panels produce different amounts of energy in different locations.
Around the Lansing area solar panels installed on a south-facing 30-degree pitch roof will typically produce:
1,339kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits, and other solar incentives are available in Michigan?
Renewable portfolio standard
In 2016, the Clean, Renewable and Efficient Energy Act amended the state’s previous renewable portfolio standard (RPS). This new standard required utilities to derive 15% of their retail energy from renewable resources by 2021. According to a progress report from the Michigan Public Service Commission (MPSC), the end goal of this standard is to reach 35% by 2025. Hopefully, with a larger plan to meet, companies will start to offer more rebates to incentivize customers.
Net metering in Michigan
In 2018, the Michigan legislature passed an order that ended traditional net metering. Now, customers are billed through an “Inflow/Outflow” program.
Through this program, homeowners install a meter that records every kilowatt hour (kWh) their solar system generates. The customer is then credited at the avoided cost rate for every kilowatt hour their solar system generates. Any energy the homeowner consumes from the utility is billed at the full retail rate.
Solar property tax exemption
Adding solar panels so any home or business will increase the value of that property. A higher-valued property means higher property taxes. Fortunately, a property tax exemption is available to homeowners who install solar panels under Michigan law.
Michigan Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Michigan, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Michigan using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Michigan
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Michigan or Lansing ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Michigan solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Michigan
Check out all of the ways energy providers of Michigan can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net Metering |
| Solar property tax exemption | State | Property Tax Incentive |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
