Solar Guide
In This Guide
Solar in Grand Rapids
Grand Rapids homeowners are discovering solar benefits as Michigan electricity prices have increased 19% from 2020 to 2024. With residential rates at 19.29 cents per kWh—well above the national average—solar installation offers energy independence and long-term savings.
Understanding your options for home solar panels is the first step toward reducing energy costs and environmental impact in West Michigan’s evolving energy landscape.
Key Takeaways
- Grand Rapids electricity rates increased 19% since 2020 making solar a smart investment for long-term energy savings.
- Federal tax credits reduce solar costs by 30% with Michigan property tax exemptions providing additional ongoing savings.
- Average Grand Rapids homeowners save $40,000 over 25 years with solar panels paying for themselves in about 11 years.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Grand Rapids neighborhoods including Kentwood, Wyoming, Walker, and Grandville. Get accurate, local pricing based on actual projects we’ve completed in your area.
System
Cost
Savings
Grand Rapids Electricity Prices
Grand Rapids residents face rising electricity costs that consistently exceed national averages, making energy alternatives increasingly important.
Michigan electricity rates climbed from 17.5 cents per kWh in 2021 to 19.3 cents in 2024, representing a 10.3% increase over three years.
Solar panels allow Grand Rapids homeowners to generate their own electricity, reducing dependence on utility rates that continue climbing above national benchmarks.
Over 25 years, solar systems can provide predictable energy costs while utility rates fluctuate, offering long-term financial stability for Michigan families.
Price of Energy: Michigan vs National Average
Grand Rapids Area Utility Providers
Grand Rapids residents rely primarily on Consumers Energy for electricity. Based on 2023 data, Consumers Energy charges 18.8¢ per kWh, matching Michigan’s state average but exceeding the national average of 16.0¢.
Michigan’s electricity rates align with the Midwest average due to the state’s energy mix and infrastructure costs. Consumers Energy’s rates reflect investments in grid modernization and renewable energy transitions across their service territory.
With electricity costs 17% above the national average, Grand Rapids homeowners can benefit from understanding solar as an energy option. Solar installation helps stabilize long-term energy costs while reducing dependence on utility rate increases.
Grand Rapids Utilities Electricity Rates
Michigan Solar Incentives
Grand Rapids homeowners can reduce solar installation costs through available solar incentives in Michigan designed to make clean energy more accessible.
Michigan offers a property tax exemption that protects homeowners from increased assessments on their solar system’s added value, providing ongoing annual savings.
The state’s net billing program allows solar owners to receive credits for excess electricity sent back to the grid.
$6,102
Average savings in Michigan solar rebates
| 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.
I apologize, but the document you’ve provided appears to be about emergency services authorities and municipal bond financing, not about solar energy property tax exemptions. The Michigan Act No. 102 from 2022 that you’ve shared deals with emergency services authorities’ powers to issue bonds and levy taxes, but it doesn’t contain any information about solar energy systems or property tax exemptions for renewable energy installations.
To provide you with an accurate description of Michigan’s solar property tax exemption program, I would need the correct legislative text or official documentation that specifically addresses solar energy systems and their property tax treatment. If you have the proper documentation for Michigan’s solar property tax exemption incentive, please share that instead, and I’ll be happy to create a clear, detailed explanation for homeowners.
Michigan’s Distributed Generation Program (Net Billing) is a state-wide policy that allows homeowners with solar panels to receive credits for excess electricity they send back to the grid. Unlike traditional net metering where you receive full retail value for your solar exports, this program credits you at a reduced rate that varies by utility company and time of day. The program operates on a monthly settlement basis, meaning your solar exports and grid imports are calculated each month.
The financial benefits depend on your specific utility company. DTE Energy customers receive approximately 8.5 cents per kWh for off-peak exports 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 rates during summer peak (2-7pm). Indiana-Michigan Power offers 12.4 cents per kWh, while Lansing Board of Water & Light provides 6-10 cents per kWh plus an additional 1.3 cents per kWh for the first five years. Any unused credits roll over month-to-month as dollar amounts that can be applied to future electricity bills.
All solar homeowners in Michigan are automatically eligible for this program when they install solar panels and connect to the grid. There are no specific deadlines, but it’s important to note that Lansing Board of Water & Light ended their 1:1 net metering program in November 2022, so new customers there fall under the reduced credit structure. The key benefit is that solar energy you use directly in your home still avoids the full retail electricity rate, maximizing your savings when you consume solar power as it’s generated.
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.
Grand Rapids experiences seasonal sunlight variation and lake-effect weather patterns. Despite Michigan’s cloudy reputation, proper solar system design maximizes year-round energy production effectively.
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
We’ve mapped every solar installation across America to show you something exciting: your Grand Rapids neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have already made the switch to solar power.
Leasing Solar Panels
Grand Rapids homeowners have access to Power Purchase Agreements (PPAs) through most major utility providers, offering an alternative to cash purchases for solar installation.
With a solar PPA, you pay for the actual electricity generated by your panels at a fixed rate per kilowatt-hour, typically lower than utility rates. This means higher bills during sunny summer months and lower bills in winter, but consistent annual savings without upfront costs or maintenance responsibilities.
Unlike owning panels outright, PPA programs handle all system maintenance, monitoring, and repairs while you enjoy immediate energy savings from day one without the large initial investment required for cash purchases.
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 Grand Rapids. With electricity rates at 19.3 cents per kWh—17% above the national average—and rising costs, solar offers significant long-term savings for homeowners.
The average Grand Rapids home can save approximately $40,000 over 25 years with solar panels. Federal tax credits reduce installation costs by 30%, and Michigan’s property tax exemption provides ongoing savings by protecting homeowners from increased assessments on their solar system’s added value.
Grand Rapids does not have traditional net metering. Michigan utilities use net billing, which credits solar exports at rates lower than retail prices.
Consumers Energy, serving Grand Rapids, credits solar exports at 9-16 cents per kWh depending on season and time of day. Summer peak hours (2-7pm) receive the highest credits, with unused credits rolling over monthly as dollar amounts for future bills.
Yes, solar panels increase home value in Grand Rapids, MI. Research shows that solar panels typically add about 4% to a home’s value, according to Zillow’s study.
For Grand Rapids homeowners, this means a $300,000 home could see an increase of approximately $12,000 in value. Additionally, Michigan’s property tax exemption ensures you won’t pay higher property taxes on your solar system’s added value, providing ongoing financial benefits.
Solar installation costs in Grand Rapids range from $11,721 to $19,653 after federal tax credits, depending on your home size and energy needs.
A typical medium-sized home (2,000-3,000 sq ft) requires a 6.38 kW system costing approximately $14,238 after the 30% federal tax credit. This system saves Grand Rapids homeowners an average of $91 monthly on electricity bills.
Yes, solar is financially worth it for Grand Rapids homeowners. With electricity rates at 19.3¢/kWh—17% above national averages—solar systems typically pay for themselves within 11 years through monthly savings.
The average Grand Rapids home saves approximately $40,000 over 25 years with solar panels. Federal tax credits reduce upfront costs by 30%, while Michigan’s property tax exemption provides ongoing savings by protecting homeowners from increased assessments.
We believe Palmetto Solar is the best choice for Grand Rapids homeowners considering solar installation. As a national company with local focus, we’ve completed 826 installations across Michigan since 2020.
We offer competitive financing options and work with trusted installation partners to ensure quality service. Our comprehensive approach handles everything from design and permits to installation and ongoing support for Michigan families.