Nathan Healy
Certified by Nathan Healy
Updated: June 2026
Quality Solar Panels Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
About Nathan Healy

Nathan Healy is a Vice President at Palmetto, where he helps homeowners cut through the confusion around solar and figure out whether it actually pencils out for their home, roof, and budget. With energy prices climbing and the federal incentive landscape shifting, his focus is simple: give people a straight, honest answer instead of a sales pitch.

He reviews Palmetto’s local solar guides so the costs, incentives, and utility details on this page reflect what’s really happening in your area.
He believes in solar so much, that he had Palmetto install solar on his own parents’ house, the home he grew up in.

01

Solar Power in Detroit

If you live in Detroit, you’ve likely noticed your electricity bill climbing. Michigan has the 12th highest electricity prices per kWh in the nation, and rates have increased 19% from 2020 to 2024. For many homeowners, that rising cost is a good reason to consider solar panel installation.

Going solar in Detroit is more approachable than you might think. This guide walks you through how solar installation works and whether it’s a good fit for your home. Learn more in our guide on home solar panels.

MICHIGAN by the Numbers

28th Most residential solar in the United States
21 Households have installed solar panels
4.4 Avg peak sun hours per day
~$43k Detroit average savings over 25 years
02

How Much Do Solar Panels Cost in Detroit, MI?

See real solar costs for your Detroit home. This calculator uses firsthand data from actual installations across Metro Detroit, including Dearborn, Livonia, Warren, and Southfield. Enter a few details to get a local, accurate estimate built on real numbers from your neighbors, not guesswork.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Michigan.
Recommended
System
6.80 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$78/mo
As low as
$78/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
  • No upfront investment
  • Palmetto handles all maintenance
  • 90% Production Guarantee
  • Comprehensive protection program included
03

Palmetto Reviews

04

Key Takeaways

  • Detroit electricity rates keep rising, climbing from 17.5¢ to 19.3¢ per kWh since 2021, so producing your own solar power protects you from future hikes.
  • Solar works well in Detroit, with 4.4 average peak sun hours a day and long summer sunshine offsetting cloudy, snowy winters for year-round production.
  • Michigan incentives lower your costs, including a property tax exemption and low-interest financing, while leasing through LightReach lets you go solar with no upfront cost.
05

Detroit Electricity Prices

Have you noticed your Detroit electricity bill creeping up each year? You’re not imagining it—rates keep climbing across Michigan.

Michigan electricity prices rose from 17.5 cents per kWh in 2021 to 19.3 cents in 2024. That’s about a 10% increase, and it stays well above the national average of 16.5 cents.

Solar installation in Detroit lets you produce your own power instead of buying it at ever-rising rates. By generating electricity on your roof, you can reduce how much you pull from the grid each month.

Over time, solar panel installation can protect you from future rate hikes and bring more predictable energy costs. Learn more in our guide on home solar panels.

Price of Energy: Michigan vs National Average

10¢
20¢
30¢
13.7¢
17.5¢
15.0¢
17.9¢
16.0¢
18.8¢
16.5¢
19.3¢
2021
2022
2023
2024
US Average
Michigan

Detroit Area Utility Providers

In Detroit, most homes are powered by DTE Energy. In 2023, DTE customers paid about 19.7¢ per kilowatt-hour—higher than both the Michigan average of 18.8¢ and the national average of 16.0¢.

Why the higher cost? Detroit’s rates reflect aging infrastructure, grid maintenance, and Michigan’s reliance on imported energy sources. These factors add up, pushing local prices above what many homeowners pay elsewhere in the country.

Because Detroit electricity costs run higher than average, solar installation can help you rely less on the grid. Generating your own power gives you more control over rising energy bills over time.

Detroit Utilities Electricity Rates

DTE Energy
19.70¢
+23%
MI Average
18.80¢
+18%
US Average
16.0¢
06

Michigan Solar Incentives

Detroit homeowners can lower solar costs with several solar incentives in Michigan, from tax exemptions to utility rebates and low-interest financing.

Michigan’s property tax exemption keeps your added home value from raising your tax bill. Utility programs like Consumers Energy’s SolarCurrents reward the electricity your panels produce, and other rebates support systems and batteries.

Financing through Michigan Saves makes solar reachable. Though the federal 30% residential tax credit ended, state and local incentives remain. LightReach leasing simplifies things—Palmetto handles the commercial ITC and passes savings through lower monthly payments.

Incentive Type Description Source
Michigan Property Tax Exemption for Solar Property Tax Exemption Michigan law exempts the added home value from a solar energy system (up to 150 kW) from property tax assessments, saving homeowners hundreds of dollars per year. Learn More
Michigan Saves – Home Energy Loan Program Rebate Michigan Saves offers homeowners low-interest financing for solar and battery storage installations, with loan amounts from $1,000 to $50,000 at rates between 4.44% and 7.90% for terms up to 15 years.
PACE Financing – Lean & Green Michigan (Commercial/Agricultural) Rebate Lean & Green Michigan’s PACE program allows commercial, agricultural, and nonprofit property owners to finance solar and battery storage with no upfront costs, repaying through their property tax bill over up to 25 years.

Michigan’s property tax exemption, established under MCL 211.7hh, ensures that when you install a solar energy system on your home, the increased value it adds to your property is not counted in your tax assessment. This means your property taxes will not go up as a result of going solar — a significant long-term benefit for Detroit homeowners.

The exemption applies to residential solar systems up to 150 kW in capacity, which covers virtually all home installations (most Michigan residential systems are 8–12 kW). The exemption also covers battery storage equipment paired with your solar system. At Michigan’s average property tax rate of approximately 1.25%, a $25,000 solar system could otherwise add $300–$435 per year to your tax bill — savings that compound to $6,000–$8,700 over a 20-year system lifespan.

This exemption applies automatically statewide and does not require a separate application by the homeowner. It was reinstated in 2019 under Governor Whitmer and remains fully active in 2026.

Michigan Saves is a nonprofit green bank that offers homeowners access to competitive financing for solar panel and battery storage installations. Through its Home Energy Loan Program, Michigan Saves negotiates favorable interest rates with a network of participating lenders, offering current rates between 4.44% and 7.90% APR — often lower than standard home improvement loans or credit cards.

Eligible loan amounts range from $1,000 to $50,000, with repayment terms of up to 15 years, making it possible to finance a full solar-plus-storage system with manageable monthly payments. The program is available to Michigan homeowners statewide, including residents of Detroit, and can be used for new solar installations, battery storage additions to existing systems, or solar system upgrades.

To apply, visit michigansaves.org to find a participating lender and contractor in your area. Michigan Saves-approved contractors have been vetted for quality and can help guide you through both the installation and financing process.

Property Assessed Clean Energy (PACE) financing, administered in Michigan by Lean & Green Michigan, is a powerful tool for commercial, industrial, multifamily housing, agricultural, and nonprofit property owners looking to install solar panels or battery storage with no upfront out-of-pocket costs. Under PACE, the cost of the solar installation is repaid through an assessment added to the property’s tax bill over a period of up to 25 years.

Because repayment is tied to the property rather than the individual borrower, PACE financing can be easier to qualify for than traditional loans and does not require a large down payment. If the property is sold before the loan is repaid, the remaining balance can transfer to the new owner along with the solar system — a feature that can also be a selling point for the property.

PACE is available for commercial, agricultural, and nonprofit properties in Michigan — it is not available for standard single-family residential properties. Contact Lean & Green Michigan directly at leanandgreenmichigan.com to learn more about eligibility, participating lenders, and how to begin the application process.

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 Quote
07

Detroit 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 sees cold, snowy winters and cloudy days, but long summer sun makes up for it. Like Boston or Seattle, Detroit can produce plenty of solar energy year-round.

Solar Production in Detroit by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Panel Systems in Detroit

Detroit is going solar, one neighborhood at a time. We’ve mapped solar installations across the country, right down to the address. Explore the interactive map below to see how many of your neighbors have made the switch. Just click a hexagon to discover solar activity in your community.

09

Leasing Solar Panels

Not ready to pay for solar upfront? In Detroit, Palmetto offers a Power Purchase Agreement (PPA) through LightReach. Since your home is served by DTE Energy, you qualify for this option. With a PPA, you simply pay a set price for each kilowatt-hour your panels produce—no big upfront cost.

A PPA differs from a solar lease. A lease is a fixed monthly payment, while a PPA charges you only for the power you use. Bills run a bit higher in sunny summer months and lower in winter, but savings even out over the year.

Unlike paying cash, Palmetto owns and maintains the system for you. Learn more about your choices in our guide on whether to buy or lease solar.

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!

Explore LightReach Leasing
10

Frequently Asked Questions

Detroit no longer offers traditional one-to-one net metering. Instead, your utility, DTE Energy, uses a net billing (export credit) program. You’re charged the full retail rate for electricity you pull from the grid, while the solar power you send back earns a credit at less than the retail rate.

On DTE’s Standard Time-of-Day rate, exports are credited around 8.5 cents per kWh off-peak and about 14 cents during summer peak. Excess credits roll over month to month as a dollar amount applied to future supply charges.

Yes. When you own or purchase your solar panels, they can raise your Detroit home’s value. A Zillow study found homes with solar panels sold for about 4.1% more than comparable homes without them.

This benefit applies to owned systems, not leased or PPA systems like LightReach. With a leased system, resale may work differently, since the buyer typically assumes the existing lease agreement rather than gaining added home value.

Many Detroit homeowners go solar with a LightReach lease, which requires no upfront cost. You simply pay a low fixed monthly payment—starting around $78/mo for a medium home—while Palmetto owns and maintains the system.

If you prefer to buy, a cash purchase for an average Detroit home runs about $21,500. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 law change. See the calculator above for pricing based on your home size.

With Palmetto’s LightReach lease, one simple monthly payment covers your solar system, installation, monitoring, maintenance, and a 90% Production Guarantee—with no upfront cost. For a typical 6.80 kW system in Detroit, that’s about $78/month.

Because Palmetto owns the system, it claims the commercial 30% tax credit and passes those savings to you through lower payments—an advantage over cash purchases. Since the lease is often less than your current DTE bill, you can start saving from day one.

Solar production in Detroit depends on your system size and local sunlight. Using NREL PVWatts data, a typical 7 kW home system produces around 9,000 kWh per year, while a larger 10 kW system generates roughly 12,900 kWh per year. Detroit averages about 4.4 peak sun hours per day.

Output shifts with the seasons. Long summer days bring higher production, while cloudy, snowy winters produce less. Your actual results also depend on roof angle, direction, and any shading from trees or nearby buildings.

Yes, solar can make sense in Detroit. With 4.4 average peak sun hours per day, long summer sunlight offsets cloudy winters for solid year-round production. Detroit’s electricity rates have climbed to 19.3¢ per kWh, so generating your own power helps protect you from future increases.

Michigan’s property tax exemption and low-interest financing lower your costs. Plus, LightReach, Palmetto’s solar lease program, removes the upfront cost barrier entirely—you can go solar with no money down and start saving from day one.

Detroit homeowners can lower solar costs with several Michigan incentives. The state’s property tax exemption keeps the added home value from raising your tax bill, while Michigan Saves offers low-interest financing (4.44%–7.90% APR) for solar and battery storage. Commercial and agricultural properties may also use PACE financing.

The federal 30% residential tax credit is no longer available for cash purchases after the 2025 federal law change. With LightReach leasing, however, Palmetto claims the commercial ITC and passes those savings through lower monthly payments.