Lansing, MI Solar Panels
Solar Power in Lansing
If you’re a Lansing homeowner curious about solar, you’re asking the right questions. Michigan electricity rates have climbed 19% since 2020, now averaging 19.29 cents per kWh — higher than the national average — making energy costs a growing concern for many households.
This guide will help you understand how solar panels for your home work, what installation looks like in Lansing, and whether it’s the right fit for you.
How Much Do Solar Panels Cost in Lansing, MI?
Based on real solar installations across Lansing and nearby communities like East Lansing, Okemos, Holt, and DeWitt, this calculator gives you an accurate, local estimate of what solar panels might cost — and save — for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Michigan electricity rates are 17% above the national average — making solar one of the most effective ways for Lansing homeowners to reduce their monthly energy bills.
- A typical Lansing home can save around $40,000 over 25 years with solar, with leasing options available starting as low as $73/month and no upfront cost.
- Michigan offers low-interest solar financing through Michigan Saves, with loans up to $50,000 and rates as low as 4.44% APR to help cover installation costs.
Lansing Electricity Prices
Electricity in Lansing costs more than most Americans pay — and that gap has been growing every year.
Michigan’s electricity rate climbed from 17.5 cents per kWh in 2021 to 19.3 cents per kWh in 2024 — well above the national average of 16.5 cents. That’s a meaningful increase for households managing monthly budgets.
Solar panels allow homeowners to generate their own electricity, reducing how much they draw from the grid. For Lansing residents already paying above-average rates, that shift can make a noticeable difference in monthly energy bills.
Because solar systems are designed to last 25 years or more, the long-term benefit compounds over time. As grid electricity prices continue to rise, the value of generating your own power tends to grow alongside them.
Price of Energy: Michigan vs National Average
Lansing Area Utility Providers
In Lansing, the primary electricity provider is Consumers Energy. Based on 2023 data — the most recent available — Consumers Energy charged 18.80¢ per kWh, already above the national average of 16.0¢ per kWh.
Consumers Energy’s 2023 rate matched Michigan’s statewide average of 18.80¢ per kWh, both sitting nearly 18% above the national average. Michigan’s aging grid infrastructure and fuel costs contribute to rates that consistently outpace the U.S. norm.
When electricity costs run higher than the national average, generating your own power through solar becomes more financially meaningful. Every kilowatt-hour your panels produce is one fewer you purchase at Lansing’s above-average rates.
Lansing Utilities Electricity Rates
Michigan Solar Incentives
Michigan homeowners may have access to several solar incentives in Michigan that can help reduce the upfront cost of going solar in Lansing.
The Michigan Saves Home Energy Loan Program is one of the most accessible options for Lansing residents, offering low-interest financing between $1,000 and $50,000 with terms up to 15 years to help cover installation costs.
Note that the federal residential solar tax credit is no longer available. For those considering solar leasing, Palmetto’s LightReach program handles the commercial tax credit internally, passing savings through as lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Michigan Saves Home Energy Loan Program | Rebate | Michigan Saves offers low-interest financing for residential solar installations, with loan amounts from $1,000 to $50,000 and terms up to 15 years at rates as low as 4.44% APR. | |
| Lean & Green Michigan PACE Financing (Commercial Solar) | Rebate | Michigan’s Property Assessed Clean Energy (PACE) program allows commercial, industrial, agricultural, and multifamily property owners to finance solar installations with no upfront cost, repaid over up to 25 years through their property tax bill. |
Michigan Saves is a nonprofit green bank that offers affordable home improvement loans specifically for energy upgrades, including solar panel installations. Homeowners can borrow between $1,000 and $50,000 with repayment terms of up to 15 years. Interest rates range from 4.44% to 7.90% APR, with most customers financing at approximately 5.50% APR — well below typical personal loan or credit card rates.
Unlike some financing programs, Michigan Saves loans are unsecured, meaning your home is not used as collateral. The program works with a network of approved lenders and solar contractors across Michigan, making it accessible to homeowners throughout the state regardless of their utility provider — including residents of Lansing.
This financing option is particularly valuable for homeowners who want to own their solar system outright (to maximize incentive eligibility) but need help covering upfront costs. Owning the system — rather than leasing — ensures eligibility for incentives like the Michigan property tax exemption and any applicable utility rebates.
Lean & Green Michigan administers the Property Assessed Clean Energy (PACE) Financing Program, which enables commercial, industrial, agricultural, and multifamily property owners in Michigan to finance solar PV installations with no upfront out-of-pocket costs. Repayment is structured as an assessment on the property tax bill, spread over a term of up to 25 years, making large solar projects financially accessible without requiring traditional bank financing.
PACE financing is particularly advantageous because the repayment obligation is tied to the property rather than the individual owner, which can make it easier to transfer with a property sale. Eligible properties include commercial buildings, industrial facilities, agricultural operations, and multifamily housing. Note that this program is not available for single-family residential homeowners.
Business and property owners in Lansing interested in PACE financing should contact Lean & Green Michigan to assess project eligibility, review current financing terms, and begin the application process. PACE can be combined with federal tax incentives and utility rebates to further reduce the net cost of a commercial solar installation.
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 QuoteLansing 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.
Lansing gets cold, snowy winters and warm summers. While cloudy days are common, solar panels still work well year-round. Many cities with similar climates produce excellent solar energy with the right system.
Solar Production in Lansing 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 Lansing
We’ve mapped solar installations across Lansing so you can see just how many of your neighbors have already made the switch. Explore the map below to discover which neighborhoods and communities are leading the way in clean energy adoption right here in Lansing, MI.
Leasing Solar Panels
If you’re a Lansing homeowner interested in solar but not ready to pay the full cost upfront, Palmetto offers a Power Purchase Agreement (PPA) through its LightReach program. A PPA is available to customers served by DTE Energy and Consumers Energy in Michigan — the two largest utilities in the state. Note that LightReach is not currently available to customers of Indiana-Michigan Power (IMP) or Lansing Board of Water & Light (LBWL).
With a solar PPA, you agree to purchase the electricity your panels produce at a set rate per kilowatt-hour — for example, $0.15/kWh — rather than paying a fixed monthly amount. Because solar panels produce more energy in summer than winter, your PPA bill will naturally be higher in summer months (when you’re also saving the most on your utility bill) and lower in winter. Over the course of a year, the total cost typically equals what you’d pay under a fixed monthly lease.
Compared to a cash purchase, a PPA through LightReach has some meaningful advantages. There’s no large upfront investment, and Palmetto owns and maintains the system — meaning repairs, monitoring, and performance guarantees are handled for you. If your panels underperform, Palmetto’s 90% production guarantee provides additional protection. To learn more about how a PPA compares to buying outright, visit our solar buy or lease guide.
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 for many Lansing homeowners. Michigan’s electricity rates have climbed to 19.3¢/kWh — well above the national average — and a typical Lansing home can save around $40,000 over 25 years with solar. With 4.4 peak sun hours per day, Lansing receives enough sunlight to make solar a practical choice year-round.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — Lansing homeowners can go solar with no money down and start saving from day one, with payments starting as low as $73/month.
Lansing’s primary utility, Lansing Board of Water & Light (LBWL), ended traditional 1:1 net metering on November 1, 2022. New solar customers now fall under a Distributed Generation Policy, where excess energy exported to the grid is credited at roughly 6 to 10 cents per kWh — less than the full retail rate of ~19.3¢/kWh.
Importantly, solar energy your home uses directly — before it reaches the grid — still avoids purchasing power at the full retail rate, which is where most of your savings come from. LBWL also offers an extra 1.3¢/kWh bonus for 5 years when customers transfer their Renewable Energy Credits (SRECs) to LBWL. Unused export credits roll over monthly and can be applied to future supply charges.
Yes, solar panels can increase your home’s value in Lansing. Research from Zillow found that homes with solar panels sell for about 4.1% more than comparable homes without them. For a $250,000 home in Lansing, that’s roughly $10,000 in added value.
This benefit is most significant for owned systems rather than leased ones, as buyers typically value systems they’ll own outright. With Michigan electricity rates already above the national average, Lansing buyers increasingly recognize the long-term savings solar provides.
For Lansing homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting as low as $73/month for a typical home. Palmetto owns and maintains the system, so there’s nothing to manage.
For those who prefer to own their system, a cash purchase runs approximately $20,340 for an average-sized Lansing home. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For many Lansing homeowners, solar can be worth it financially — especially with Michigan electricity rates at 19.3¢/kWh, well above the national average. A typical Lansing home can save around $40,000 over 25 years.
With Palmetto’s LightReach lease, there’s no upfront cost. Your monthly lease payment — starting as low as $73/month — is typically less than what you’re currently paying for electricity, meaning most Lansing homeowners start saving from day one.
Palmetto Solar is a top choice for Lansing homeowners. We’ve completed 826 installations across Michigan since 2020, bringing national-scale expertise with a local focus. Our vetted install network ensures quality workmanship, and we offer some of the most flexible financing options available — including our LightReach lease with no upfront cost, starting as low as $73/month.
As a national company serving Lansing residents, we handle everything from design and permitting to installation and ongoing monitoring — making the process straightforward from start to finish.
Palmetto’s LightReach is an all-inclusive solar lease — one monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There’s no upfront cost. For a typical 6.38 kW system in Lansing, the estimated lease payment is approximately $73/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage over cash purchases, where the residential ITC was eliminated. Most Lansing homeowners start saving from day one.