Grand Rapids, MI
In This Guide
Solar in Grand Rapids
Considering solar installation in Grand Rapids? With Michigan’s electricity prices having increased 19% from 2020 to 2024, investing in residential solar panels offers a smart solution for reducing utility costs. Grand Rapids homeowners are increasingly embracing solar installation to gain energy independence while benefiting from Michigan’s clean energy incentives.
Our comprehensive guide to home solar panels covers everything you need to know about solar installation specific to West Michigan’s climate, regulations, and energy landscape.
Key Takeaways
- Grand Rapids residents can save an average of $40,000 over 25 years with solar panels while reducing dependence on increasingly expensive utility electricity.
- Michigan offers valuable solar incentives including a 30% federal tax credit and property tax exemptions that make installation more affordable.
- Despite Michigan winters, solar panels produce enough energy year-round to power essential home systems and significantly reduce electricity bills.
Solar Cost Calculator
Discover the true cost of solar in Grand Rapids with our exclusive calculator, powered by real installation data from East Grand Rapids, Kentwood, Wyoming, and other local neighborhoods. Get accurate, transparent pricing based on actual Palmetto installations in your area.
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Estimated Investment and Savings
Based on Palmetto Solar installations in Michigan. Current electricity rate: 19.3¢/kWh. Assumes 70% credit of retail rate.
Grand Rapids Electricity Prices
Grand Rapids residents face electricity costs consistently higher than the national average, with Michigan rates reaching 19.3 cents per kWh in 2024.
Since 2021, Grand Rapids electricity prices have climbed over 10%, outpacing national averages. This steady increase puts financial pressure on local households, especially during Michigan’s extreme seasonal weather.
Solar installation offers Grand Rapids homeowners a practical solution to these rising costs. By generating your own clean electricity, you can reduce monthly utility bills while protecting against future rate hikes.
Over time, solar panels provide predictable energy costs and typically pay for themselves through savings. With Michigan’s solar incentives, Grand Rapids homeowners can achieve energy independence while contributing to a cleaner community.
Price of Energy: Michigan vs National Average
Grand Rapids Area Utility Providers
In Grand Rapids, Consumers Energy is the primary utility provider, charging 18.8¢ per kWh in 2023 – matching Michigan’s state average but exceeding the national average of 16.0¢ per kWh.
Grand Rapids residents pay higher electricity costs due to Michigan’s aging infrastructure and energy transmission challenges. These rates have continued rising, with Consumers Energy implementing multiple price increases since 2023.
Solar installation offers Grand Rapids homeowners a path to reduce dependence on utility pricing. With predictable energy costs and potential savings over time, solar provides a stable alternative to fluctuating electricity rates.
Grand Rapids Utilities Electricity Rates
Michigan Solar Incentives
Grand Rapids homeowners can significantly reduce solar installation costs through federal tax credits and solar incentives in Michigan, including property tax exemptions and net billing programs.
Michigan offers a Property Tax Exemption that prevents your solar system from increasing property taxes. Additionally, the Distributed Generation Program allows you to receive credits when your system generates excess electricity.
These incentives can change over time, so research thoroughly and act promptly to maximize your savings. Consult with solar experts to understand how these benefits apply to your specific situation.
Save an average of
$6,102
in solar rebates in Michigan
| INCENTIVE | TYPE | DESCRIPTION | SOURCE |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| 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 |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Michigan’s Property Tax Exemption for solar equipment is designed to encourage renewable energy adoption by reducing the tax burden on property owners. Under this state tax exemption, solar panels and related equipment installed on your property are exempt from being counted in your property tax assessment. This means when you install solar, your property taxes won’t increase despite the added value of the solar system to your home.
This incentive has no specified expiration date and applies to residential solar installations throughout Michigan. There are no specific dollar limits on the exemption – it simply prevents any property tax increase that would otherwise result from your solar installation. To qualify, you simply need to own the solar system (rather than lease it) and have it properly installed on your property. No special application process is required beyond your standard property assessment procedures, but it’s always wise to confirm with your local tax assessor that they’re aware of this exemption when your property is assessed after solar installation.
Michigan’s Distributed Generation Program (Net Billing) is a solar incentive structure that allows homeowners with solar panels to receive credit for excess electricity they export to the grid. Unlike traditional net metering which credits exports at the full retail rate, this program credits exported electricity at a lower rate that varies by utility company. When your solar system produces more electricity than your home uses, the surplus flows back to the grid, and you receive a credit on your bill based on your utility’s specific export rate.
The financial benefit varies by utility: DTE Energy customers receive approximately 8.5 cents per kWh during off-peak hours and around 14 cents during summer peak hours (4-7pm). Consumers Energy provides between 9-16 cents per kWh depending on season and time of day, with highest values during summer peak (2-7pm). Indiana-Michigan Power offers 12.4 cents per kWh, while Lansing Board of Water & Light provides about 6-10 cents per kWh plus an additional 1.3 cents for the first five years. All utilities allow excess credits to roll over month-to-month as dollar amounts that can be applied to future bills. The program operates on a monthly settlement cycle, meaning your imports and exports are calculated each billing period.
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 QuoteGrand Rapids 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.
Despite Grand Rapids’ cloudy winters, its long summer days and moderate temperatures make it surprisingly suitable for solar power with the right system design.
Solar Production in Grand Rapids 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 Installations in Grand Rapids
Discover how Grand Rapids is embracing solar energy! We’ve mapped every solar installation in your community, showing which neighborhoods are leading the clean energy transition. Explore our interactive heatmap to see how many of your neighbors have already made the switch to solar power.
Leasing Solar Panels
In Grand Rapids, Palmetto offers flexible Power Purchase Agreements (PPA) for customers served by DTE Energy and Consumers Energy. With a PPA, instead of paying a fixed monthly lease, you simply purchase the electricity your panels generate at a predetermined per-kilowatt-hour rate, typically lower than utility prices.
This option allows you to enjoy clean solar energy without the upfront investment or maintenance responsibilities of ownership. Your PPA provider handles all system maintenance, repairs, and monitoring, ensuring optimal performance throughout the agreement term.
For Grand Rapids residents looking to reduce their carbon footprint while avoiding installation costs, a LightReach PPA offers an accessible path to solar benefits with predictable energy costs and no maintenance worries.
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 financial sense in Grand Rapids despite Michigan’s cloudy winters. With electricity rates having increased 19% since 2020, solar panels offer significant savings over their 25+ year lifespan.
Grand Rapids receives adequate sunlight to produce electricity year-round, and Michigan’s solar incentives (including the 30% federal tax credit and property tax exemptions) make installation more affordable. Most homeowners see payback periods of 10-11 years with approximately $40,000 in lifetime savings.
Grand Rapids no longer has traditional net metering. Instead, utilities like Consumers Energy and DTE Energy use a Net Billing system where exported electricity is credited at less than retail rates (9-16¢/kWh depending on utility and time of day).
Under this program, excess credits can be rolled over month-to-month as dollar amounts applied to future bills. While not as beneficial as full net metering, this system still provides significant value for solar owners.
Yes, solar panels typically increase home value in Grand Rapids. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
For the median Grand Rapids home value, this translates to roughly $10,000 in added value. This increase reflects both the energy savings potential and growing buyer interest in sustainable features.
In Grand Rapids, a typical 6.38 kW solar system costs around $20,340 before incentives. After applying the 30% federal tax credit, the final cost drops to approximately $14,238.
System costs vary based on home size, energy needs, and roof characteristics. Most Grand Rapids homeowners choose systems between 5-9 kW, with final costs ranging from $11,700 to $19,600 after incentives.
Yes, solar is financially worthwhile in Grand Rapids. With Michigan’s electricity rates up 19% since 2020, a typical 6.38 kW system costs around $14,238 after tax credits and generates approximately $40,000 in savings over 25 years.
Most Grand Rapids homeowners see payback periods of 10-11 years, after which the electricity generated is essentially free. The property tax exemption for solar equipment provides additional financial benefits.
As a national company with a strong local presence in Michigan, we at Palmetto are committed to providing Grand Rapids residents with quality solar installations. Since 2020, we’ve completed over 826 installations across Michigan.
Our comprehensive approach includes competitive financing options and a reliable installation network, ensuring your solar journey is smooth from start to finish.