Grand Rapids, MI Solar Panels
In This Guide
Solar Power in Grand Rapids
Grand Rapids homeowners are discovering that solar energy is more affordable than ever. With Michigan electricity prices climbing 19% from 2020 to 2024, many residents are exploring solar panels for home use as a way to take control of their energy costs.
This guide explains everything you need to know about solar installation in Grand Rapids—from understanding local incentives to choosing the right system for your home.
How Much Do Solar Panels Cost in Grand Rapids, MI?
Our calculator uses real installation data from Grand Rapids homeowners—including those in East Grand Rapids, Kentwood, Wyoming, and Grandville—to show you accurate solar costs for your area. Get pricing based on actual local installations, not estimates.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Grand Rapids receives enough sunlight for effective solar production with 4.3 peak sun hours daily, making solar panels a practical investment year-round.
- Michigan electricity rates have increased 10% since 2021 to 19.3¢ per kWh, while solar provides protection against future utility rate increases.
- A typical Grand Rapids solar system can save homeowners around $40,000 over 25 years while reducing carbon emissions equivalent to planting 175 trees.
Grand Rapids Electricity Prices
Understanding your electricity costs is the first step toward making informed energy decisions for your Grand Rapids home.
Michigan electricity rates have climbed steadily in recent years. From 2021 to 2024, rates increased from 17.5 to 19.3 cents per kilowatt-hour—a 10% jump that consistently outpaced the national average.
Solar panels generate electricity at a fixed cost, helping homeowners avoid these rising utility rates. Once installed, your system produces power at the same predictable rate for decades, regardless of utility price increases.
Over 25 years, the typical solar system can offset hundreds of thousands of kilowatt-hours of grid electricity. This long-term protection against rate increases is why many Grand Rapids families view solar as a practical investment.
Price of Energy: Michigan vs National Average
Grand Rapids Area Utility Providers
Understanding local electricity costs helps Grand Rapids residents make informed energy decisions. According to 2023 data, both major utility providers in the area charge rates above the national average.
Consumers Energy charges 18.8¢ per kWh, matching Michigan’s state average but exceeding the national average of 16.0¢ by 17.5%. Great Lakes Energy offers slightly lower rates at 17.7¢ per kWh, though still above national costs.
These higher electricity rates mean Grand Rapids homeowners pay more annually for power. Solar panels allow residents to generate their own electricity, protecting against future rate increases while reducing monthly utility bills over time.
Grand Rapids Utilities Electricity Rates
Michigan Solar Incentives
Going solar in Grand Rapids comes with financial benefits beyond energy savings. State and local programs can help reduce your upfront costs and ongoing expenses through solar incentives in Michigan.
Michigan offers a property tax exemption that protects you from higher taxes on your home’s increased value after installing 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. Understanding available incentives helps you make informed decisions about your solar investment and potential long-term savings.
| 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 inform you that the document provided does not describe a solar property tax exemption program. The legislation you’ve shared (Michigan Senate Bill 821, Public Act 102 of 2022) relates to emergency services authorities and their ability to issue bonds and levy taxes for emergency services purposes—it has no connection to solar energy or renewable energy property tax exemptions.
To provide you with an accurate description of Michigan’s solar Property Tax Exemption incentive, I would need the correct source documentation. Michigan does have solar property tax exemption programs, but they would be found under different legislation, typically in Michigan’s property tax statutes. If you can provide the correct documentation for Michigan’s solar property tax exemption program, I’d be happy to create a clear, detailed explanation for homeowners.
Michigan’s Distributed Generation Program uses a net billing system where your solar energy is measured in two directions. When you use electricity from the grid, you’re charged the full retail rate. When your solar panels produce more energy than you need and send it back to the grid, you receive credits at a reduced rate that varies by utility company and time of day. This is different from traditional net metering, where exports were credited at the full retail rate.
The financial benefit depends on your utility provider. 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 of day, with the highest rates during summer peak (2-7pm). Indiana-Michigan Power offers 12.4 cents per kWh for all exports. Lansing Board of Water & Light provides 6-10 cents per kWh, plus an additional 1.3 cents per kWh for five years if you transfer your Renewable Energy Credits to the utility. Any unused credits roll over month to month as dollar amounts that apply to future supply charges on your bills.
This program is available to residential solar customers across Michigan, though specific terms vary by utility provider. The most important thing to understand is that you’ll save the most money by using your solar energy as it’s generated in your home, rather than exporting it to the grid, since the export credit rates are lower than what you pay for electricity from the grid. There are no application deadlines, as this is the standard billing structure for new solar installations in Michigan.
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 distinct seasonal sunlight variation and lake-effect cloud cover. However, modern solar panels efficiently capture available light year-round, making solar a smart investment here.
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 Panel Systems in Grand Rapids
We’ve mapped every solar installation across the United States to bring you this interactive view of Grand Rapids. Explore which neighborhoods in your community have already made the switch to clean energy—you might be surprised by how many of your neighbors have gone solar!
Leasing Solar Panels
Grand Rapids residents served by DTE Energy or Consumers Energy have access to Palmetto’s LightReach Power Purchase Agreement (PPA). With a PPA, you pay only for the electricity your solar panels produce at a set rate per kilowatt-hour, rather than a fixed monthly payment. Your bill varies seasonally—higher in summer when panels produce more energy, lower in winter—but annual costs remain predictable.
The key advantage of a PPA is simplicity. Palmetto handles all system maintenance, monitoring, and repairs at no cost to you. There’s no upfront investment to manage or equipment to maintain. You simply enjoy lower electricity costs from day one without the responsibilities of system ownership. Compare this to purchasing a system outright, where you’re responsible for all maintenance and repairs after installation.
For customers of Indiana-Michigan Power or Lansing Board of Water & Light, PPA options aren’t currently available, but Palmetto offers other financing solutions. Learn more about whether buying or leasing solar panels makes sense for your 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 Grand Rapids. Despite Michigan’s reputation for cloudy weather, the area receives 4.3 peak sun hours daily—enough for solar panels to generate significant electricity year-round. With electricity rates at 19.3¢ per kWh and rising, a typical Grand Rapids solar system can save homeowners around $40,000 over 25 years.
Modern solar panels work efficiently even on cloudy days, capturing available light to power your home. Michigan’s property tax exemption and net billing program provide additional financial benefits, making solar a practical long-term investment for Grand Rapids residents.
Grand Rapids does not have traditional net metering. Michigan utilities now use a net billing system where you’re charged the full retail rate for electricity from the grid, but receive reduced credits for excess solar energy exported back.
Credit rates vary by utility: DTE Energy offers 8.5-14¢/kWh depending on time of day, Consumers Energy provides 9-16¢/kWh (highest during summer peak), Indiana-Michigan Power credits 12.4¢/kWh, and Lansing Board of Water & Light offers 6-10¢/kWh. Unused credits roll over monthly as dollar amounts toward future bills.
Yes, solar panels increase home value in Grand Rapids. A Zillow study shows homes with solar panels sell for 4.1% more than comparable homes without them. For a typical Grand Rapids home valued at $250,000, that means an additional $10,250 in resale value.
Michigan’s property tax exemption protects you from higher taxes on this increased value. The added worth comes from lower utility bills and energy independence—features that appeal to today’s homebuyers looking for long-term savings.
Solar panel costs in Grand Rapids vary by home size. Based on actual local installations, a small home (up to 2,000 sq ft) needs a 5.10 kW system costing around $16,744. A medium home (2,000-3,000 sq ft) requires a 6.38 kW system at approximately $20,340. Large homes (over 3,000 sq ft) typically install a 9.13 kW system for about $28,075.
These prices reflect the full system cost at $3.08-$3.28 per watt. A typical medium-sized Grand Rapids home can expect to save around $91 monthly on electricity bills, with a payback period of approximately 15 years and total 25-year savings near $40,000.
Yes, solar is financially worth it in Grand Rapids. A typical system costs $16,744-$28,075 depending on home size, with monthly savings of $73-$130 on electricity bills. The payback period ranges from 14-15 years, after which you enjoy free electricity for the remaining system life.
Over 25 years, Grand Rapids homeowners save $31,771-$56,877 in total electricity costs. Michigan’s property tax exemption and net billing credits provide additional value, while protecting against future utility rate increases that have risen 10% since 2021.
We’re proud to serve Grand Rapids homeowners with quality solar installations. As a national company with local focus, we’ve completed 826 installations across Michigan since 2020, bringing our expertise directly to your community.
We offer flexible financing options to fit your budget, along with a trusted network of professional installers. Our team handles everything from design to activation, making your transition to solar energy straightforward and stress-free.