Detroit, MI Solar Panels
Solar Power in Detroit
Detroit homeowners face a unique energy challenge: Michigan’s electricity rates rank 12th highest in the nation at 19.29 cents per kWh, well above the national average. Understanding your options for home solar panels can help you take control of rising energy costs.
This guide breaks down everything you need to know about solar installation in Detroit—from costs and savings to local incentives and what to expect during the process.
How Much Do Solar Panels Cost in Detroit, MI?
Our calculator uses real installation data from Detroit-area homeowners in communities like Livonia, Dearborn, Warren, and Sterling Heights. See actual costs based on thousands of local solar projects, not national estimates or guesswork.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Detroit electricity rates are 17% above the national average at 19.3¢ per kWh, making solar savings more significant for local homeowners.
- A typical Detroit solar system costs $20,340 and can save homeowners over $40,000 in electricity costs over 25 years.
- Michigan offers a property tax exemption for solar systems protecting you from increased assessments when you add solar panels to your home.
Detroit Electricity Prices
Detroit residents pay more for electricity than most Americans. Here’s what you need to know about local energy costs and your options.
Michigan’s electricity rates have climbed steadily from 17.5 cents per kWh in 2021 to 19.3 cents per kWh in 2024. That’s consistently above the national average, meaning Detroit households pay more each month.
Solar panels generate electricity at a fixed cost, protecting homeowners from future rate increases. Once installed, your system produces power at the same predictable rate for decades, regardless of utility price changes.
Over 25 years, this stability adds up. While your neighbors face rising bills, solar homeowners lock in their energy costs today, creating long-term savings and budget predictability for Detroit families.
Price of Energy: Michigan vs National Average
Detroit Area Utility Providers
Detroit residents are served by two main utility providers: DTE Energy and Consumers Energy. According to 2023 data, DTE Energy charges 19.7¢ per kWh while Consumers Energy charges 18.8¢ per kWh—both exceeding the national average of 16.0¢.
These higher rates stem from Michigan’s aging energy infrastructure, costly maintenance requirements, and the state’s transition toward cleaner energy sources. Both utilities continue investing in grid modernization, with those infrastructure costs reflected in customer bills.
When electricity rates exceed national averages, solar becomes increasingly valuable. Generating your own power helps insulate you from utility rate fluctuations while reducing monthly energy expenses. Understanding these local costs is essential when evaluating your energy options.
Detroit Utilities Electricity Rates
Michigan Solar Incentives
Detroit homeowners can access valuable solar incentives in Michigan that help reduce upfront costs and improve long-term savings on your solar investment.
Michigan offers a property tax exemption that protects you from increased assessments when you add solar panels. The state’s Distributed Generation Program provides credits when your system produces excess electricity, though rates vary by utility provider.
These programs change periodically, so research current offerings carefully. Acting sooner rather than later ensures you can take advantage of available benefits before policies shift.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Property Tax Exemption | State tax exemption | Exempts your solar system’s added value from property tax assessment. Annual savings based on local tax rates. | Learn More |
I apologize, but I need to clarify an important issue with this request. The document you’ve provided is Michigan Senate Bill 821 from 2022, which relates to emergency services authorities and their ability to issue bonds and levy taxes. This legislation is about emergency services (like fire departments and ambulance services) and does not appear to be related to solar energy or renewable energy property tax exemptions.
Michigan does have a legitimate solar property tax exemption program, but it would be found under different legislation (typically MCL 211.1027 or similar statutes specifically addressing renewable energy systems). To provide you with an accurate description of Michigan’s Property Tax Exemption for solar installations, I would need the correct source documentation that specifically addresses renewable energy systems and their exemption from property tax assessments.
If you can provide the correct legislation or official documentation regarding Michigan’s solar property tax exemption, I’d be happy to create a clear, accurate description for homeowners. This will ensure that homeowners receive reliable information they can trust when making decisions about solar energy investments.
Michigan’s Distributed Generation Program uses a net billing system where your solar energy is tracked separately for what you use from the grid versus what you send back. Unlike traditional net metering, you’ll pay the full retail rate for electricity you draw from the grid, but receive a lower credit rate for the excess solar energy you export. This means the energy you use directly from your solar panels in real-time provides the greatest value, as it avoids purchasing electricity at the higher retail rate.
The credit you receive for exported solar energy varies by utility company and time of day. DTE Energy customers on the Standard Time of Day rate receive approximately 8.5 cents per kWh during off-peak hours and around 14 cents per kWh during summer peak hours (4-7pm). Consumers Energy credits range from 9-16 cents per kWh depending on season and time, with the highest credits during summer peak (2-7pm). Indiana-Michigan Power offers 12.4 cents per kWh, while Lansing Board of Water & Light provides approximately 6-10 cents per kWh, plus an additional 1.3 cents per kWh for five years when you transfer renewable energy credits to the utility. Any unused export credits roll over month-to-month as dollar amounts that apply to future electricity supply charges, though they don’t carry an annual cash-out value.
This program is available to residential solar customers across Michigan’s major utility territories. To maximize your financial benefit, consider sizing your system to match your actual energy consumption rather than oversizing, since exported energy is valued at less than what you pay for grid electricity. The program uses monthly settlement periods to calculate your net energy balance and apply credits to your bill.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Michigan incentives.
Get a Free QuoteDetroit Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Detroit’s seasonal sunlight variation significantly impacts solar production, with longer summer days offsetting cloudier winter months. Despite Michigan’s reputation for gray skies, properly designed solar systems perform remarkably well year-round here.
Solar Production in Detroit by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Detroit
We’ve mapped every solar installation across Detroit to help you see which neighborhoods are already powering their homes with clean energy. Explore this interactive map to discover how many of your neighbors have made the switch to solar!
Leasing Solar Panels
Detroit homeowners served by DTE Energy and Consumers Energy have access to Power Purchase Agreements (PPA) through Palmetto’s LightReach program. With a PPA, you pay only for the electricity your solar panels produce at a set rate per kilowatt-hour, rather than making a large upfront investment or managing loan payments.
This arrangement means no maintenance responsibilities—Palmetto handles all system upkeep, repairs, and monitoring. You simply enjoy lower electricity costs from day one without the financial burden of ownership. Since your payments are based on actual production, you pay more during sunny summer months when your panels generate the most power, and less during winter.
Compared to paying cash upfront, a PPA eliminates the need to recoup your investment over time or worry about equipment failures. It’s a straightforward path to solar savings without the complexity of ownership, making clean energy accessible to more Detroit families regardless of their financial situation.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes sense in Detroit despite Michigan’s cloudy reputation. With electricity rates at 19.3¢ per kWh—17% above the national average—Detroit homeowners can save significantly by generating their own power. A typical 6.38 kW system costs around $20,340 and can save over $40,000 over 25 years.
Michigan’s property tax exemption protects you from increased assessments when adding solar panels. While Detroit experiences seasonal variation in sunlight, properly designed systems perform well year-round, with summer production offsetting quieter winter months. The combination of high electricity rates and available incentives creates favorable conditions for solar investment in Detroit.
No, Detroit does not have traditional net metering. Michigan utilities now use a net billing system where you pay full retail rates for grid electricity but receive lower credits for excess solar energy exported back to the grid.
DTE Energy credits range from 8.5-14¢/kWh depending on time of day, while Consumers Energy offers 9-16¢/kWh with highest credits during summer peak hours. These export credits roll over monthly as dollar amounts applied to future supply charges, though the energy you use directly from your panels provides the greatest value.
Yes, solar panels typically increase home value in Detroit. Research from Zillow shows homes with solar panels sell for approximately 4.1% more than comparable homes without solar systems.
For a median-priced Detroit home, this premium translates to thousands of dollars in added value. Michigan’s property tax exemption means you won’t pay higher property taxes on the increased value your solar system creates, making it a financially attractive home improvement.
The cost of solar in Detroit depends on your home size and energy needs. A typical medium-sized home needs a 6.38 kW system costing approximately $20,340, while small homes (5.10 kW) start around $16,744 and large homes (9.13 kW) run about $28,075.
These prices average $3.08-$3.28 per watt installed and include all equipment, installation, permits, and warranty coverage. Detroit homeowners can expect to save over $40,000 in electricity costs over 25 years with a typical system.
Yes, solar is financially worth it for Detroit homeowners. With electricity rates at 19.3¢ per kWh—17% above the national average—a typical 6.38 kW system costs around $20,340 and saves over $40,000 over 25 years, with a payback period of about 14.6 years.
Michigan’s property tax exemption protects you from increased assessments, and your system continues generating savings for decades. The combination of high local electricity rates and long-term price protection makes solar a sound financial decision for Detroit families.
At Palmetto Solar, we’ve completed 826 installations across Michigan since 2020, bringing clean energy to communities throughout the state. Our national reach combined with local expertise means Detroit homeowners get quality service backed by proven experience.
We offer flexible financing options to fit different budgets, and our trusted installation network ensures professional work from start to finish. Whether you’re exploring solar for the first time or ready to move forward, our team guides you through every step of the process.