Considering solar panels in Grand Rapids? They could reduce your electricity bill by providing your home with affordable renewable energy all year long.
Before you decide to go solar, you probably have some questions. A reputable solar installer will be able to provide answers for your specific home, but taking a broader look can help you understand how solar panels can fit your needs. We’ll cover that and more — like how you can find the best solar company in Grand Rapids — below.
See how much you can save by going solar with Palmetto
Does Solar Make Sense in Grand Rapids, Michigan?
Grand Rapids (and Michigan as a whole) isn’t the sunniest place, thanks to the lake effect. Despite that, solar panels can still be a worthwhile investment.
According to the Solar Energy Industries Association, Michigan has enough solar panels installed to power more than 266,000 homes. That’s not enough to make it a leading state, but it does show solar can be worth it in Michigan.
Credit: SEIA
Price of electricity
In Grand Rapids, you’ll save the most money with solar panels by avoiding purchasing electricity from your utility. According to the US Energy Information Administration, the average electricity rate in Michigan in 2024 was 18.84 cents per kilowatt-hour and 18.82 cents/kWh for Consumers Energy customers. Both were higher than the national average of 16 cents/kWh.
Your actual electricity rate depends on your rate plan and may vary over time or based on your usage. In general, the more expensive your electricity, the more you could save by switching to solar.
Price of solar
Another important factor in determining how much you can save is your local cost of solar panels. Solar panel installation cost changes depending on the size of the installation, the complexity of the roof, the local cost of labor, the incentives available to you, and more.
The Solar Energy Industries Association estimates residential solar panels cost $3.33 per watt of capacity. The best way to determine what solar will cost at your home is reaching out to a reputable solar installer.
Available sunlight
Without sunlight solar panels can’t generate electricity. Does Grand Rapids’ grayer climate mean solar panels are a bad fit?
Grand Rapids gets less than four daily peak sun hours on average. That’s fewer than much of the country and a solar panel system in Grand Rapids will generate less electricity than an identical one in Phoenix. However, for solar panels to work for your home, they don’t need to generate as much electricity as they would in Phoenix. They just need to generate enough for your home.
Credit: NREL
The sunlight you get directly on your roof is more important than the regional averages. A heavily shaded roof isn’t a good fit for solar.
Outages
When paired with a battery, solar panels can provide backup power during an outage. How much of your home you can keep powered up depends on the size of your solar and battery storage system, the weather, and the length of the outage.
According to the US Energy Information Administration, the average Michigan utility customer experienced more than 18 hours of outages in 2023 (thanks partly to large winter storms). If keeping at least part of your house powered up throughout an outage is important to you, solar plus storage may be a good fit.
See how much you can save by going solar with Palmetto
Solar Incentives in Grand Rapids, Michigan
While solar prices are much lower than they were a decade ago, incentives can bring down the cost even further. Here are some that may be available to you.
Federal tax credit
The Residential Clean Energy Credit has been around for more than a decade under different names. It allows you to claim a tax credit worth 30% of the cost of going solar or installing a battery. It is widely available, but there are some stipulations.
You must own the solar panels and they must be on a home you use as a personal residence. Leased panels or solar panels on a house you rent to others won’t apply. The credit also only counts against taxes you owe or have already paid in the year you go solar (though extra credits can roll forward into future years if your tax liability is too small).
Because your personal situation might be unique, consult with a tax expert before assuming you’ll be able to collect a tax credit.
Net metering (net billing)
When you install solar panels, you may not use every kilowatt-hour they produce. You’ll also have to buy power from the grid at night or when you need more energy than your solar panels can generate.
In many areas, net metering policies help balance this by crediting you for the excess electricity you send to the grid. Under a true 1-to-1 net metering policy, every kilowatt-hour you send to the grid earns you a credit that offsets one kilowatt-hour you buy from the grid.
Michigan’s system — more accurately called net billing — delivers credits worth less than the retail rate of electricity. For Consumers Energy, the retail rate varies throughout the year, but the credits you’ll earn are about half the retail value of electricity. Excess credits can be used to cover all parts of your bill except a few taxes and securitization fees.
In Michigan, you can choose your electricity supplier. Alternative electric suppliers aren’t required to provide export credits for the electricity you send to the grid, so it’s best to get your electricity from your utility when you go solar.
Property tax exemption
Solar panels can raise property values, but thanks to Michigan’s property tax exemption, you won’t be taxed on that extra value when you add solar panels to your home.
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Solar Payback Period in Grand Rapids
Your solar payback period is the time it takes the savings from installing solar panels to match the cost. Calculating a payback period at the start of your solar panels’ life is always going to include a measure of uncertainty, but you can estimate it with a simple formula.
( Total cost to go solar ) / ( Annual savings ) = Payback period in years
If you installed a solar panel system for $10,000 after incentives and it saved you $900 per year, your solar payback period would be just over 11 years.
Consumers Energy and Rooftop Solar Panels
Unless you take your home entirely off the grid, something very few people do, you’ll still have an electric bill from Consumers Energy, even if it’s much lower in some months. Its electricity rates and net billing rules will affect your potential savings, too.
| Average electricity rate (cents/kWh) | Fixed monthly fee | Net metering type | Maximum solar offset with net billing | Maximum solar system size with net billing |
|---|---|---|---|---|
| 18.82 | 8.90 | Net billing | 110% | None |
Gas utilities and home electrification
If you have natural gas service in and around Grand Rapids, you most likely get a bill from DTE Energy, too. There’s no at-home alternative to a natural gas supply, but if you swap your gas appliances for electric ones, your solar panels can power them with clean, cheap electricity.
In some cases, home electrification can also improve your interior air quality.
See how much you can save with home energy changes
Leasing Solar Panels in Grand Rapids
If the cost of solar or concern that something might go wrong have you worried about buying solar panels, third-party ownership might be an option for you. With a solar lease or power purchase agreement, you get solar panels installed at your home in exchange for a commitment (up to 25 years) to pay a fee for the equipment or the electricity it generates. You don’t own the panels, so you don’t pay for their installation, maintenance, or eventual removal.
Lease and power purchase agreement contracts vary by company. With Palmetto’s LightReach Energy Plan, you get predictable energy payments, a production guarantee, the benefits of Palmetto Protect, and an opportunity to buy your solar panels starting after year five. Maintenance and repair are covered, too.
Solar Panel Maintenance in Grand Rapids
Solar panels can be low maintenance, but if you’re worried about being on the hook for repairs or faulty installations, there are a few things you can do.
Carefully consider the warranties you’re offered with your solar installation. Common warranties cover the equipment and the work the installers do, but offerings vary by installer.
Many companies offer maintenance and protection packages that include monitoring and service. Palmetto Protect can include proactive monitoring, parts and labor coverage, and a production guarantee, depending on the level of coverage you choose.
Snow
Grand Rapids is no stranger to snow. Is that a problem for solar panels?
Snow — and anything that blocks the sun — can temporarily reduce solar panel production. Snow will typically melt and slide off the panels’ dark, smooth surface quicker than surrounding areas, so the best course of action is just waiting. Melting snow has the benefit of cleaning your panels, too.
Never do anything that could scratch your panels or void a manufacturer's warranty.
Finding the Best Solar Companies in Grand Rapids
One of the most important decisions you make when going solar is choosing a solar company to work with. Here are some tips for finding the best solar company in Grand Rapids.
- Read reviews to get a balanced view of the companies you’re considering.
- Choose a company that won’t pressure you to make a decision before you’re ready.
- Talk to family and friends in your area who have gone solar. They can provide insight into a company’s ability to navigate local regulations.
- Compare warranties and after-installation service plans
Palmetto Reviews
“I got solar installed through Palmetto and it was fantastic. They made it painless and took care of all the paperwork for me. I'm very happy with the results. I haven't had an electric bill since it was turned on at the beginning of this year.” Russ G., Google Review
“Right from the time we had our solar installed to downloading the Palmetto Solar app. Palmetto have been an excellent company, upfront with their billing, and everything is clearly understandable on the app. Would recommend them to anyone that wants to listen.” Craig H., Google Review
“I chose Palmetto because it is a well established company, with years of service.
I would recommend this company to anyone interested in solar panels.” Sherry S. 10/7/2024 Google Review
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Frequently Asked Questions
Can you have solar panels in a snowy place?
Yes. Snow will typically melt and slide off of solar panels without too much of a problem. While snowy places typically have lower solar production, the decrease in production is typically small.
Does Grand Rapids have net metering?
Customers of Michigan’s major utilities, including Consumers Energy, can get net billing, which earns them credits on their electricity bill for the energy they send back to the grid. The credits they earn are worth less than the retail price of electricity but vary based on the time of year and day.
Do solar panels increase your property taxes?
Solar panels can increase your property value, but thanks to Michigan’s property tax exemption, you won’t pay increased property taxes just because you install solar panels.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
