Lansing, MI
Solar in Lansing
Lansing homeowners are discovering solar power’s potential as Michigan electricity prices have surged 19% since 2020. With the state’s utility costs ranking 12th highest nationwide, solar offers a practical path to energy independence and long-term savings.
Curious how home solar panels can benefit your Lansing property? This comprehensive guide explains everything you need to know about solar installation in Michigan’s capital city.
Key Takeaways
- Lansing homeowners can save $40,000+ over 25 years with solar panels while reducing dependence on Michigan’s increasingly expensive electricity.
- Michigan offers valuable solar incentives including a 30% federal tax credit and property tax exemptions that significantly reduce installation costs.
- Solar systems continue producing energy during Michigan winters with panels often performing efficiently in cold temperatures and benefiting from snow reflection.
Solar Cost Calculator
Discover the true cost of solar installation in Lansing with our calculator powered by real local data. From East Lansing to DeWitt, Okemos to Haslett, we’ve analyzed actual installations to provide you with accurate, personalized estimates for your home’s solar potential.
Select Your Home Size
Estimated Investment and Savings
Based on Palmetto Solar installations in Michigan. Current electricity rate: 19.3¢/kWh. Assumes 70% credit of retail rate.
Lansing Electricity Prices
Lansing residents face rising electricity costs that consistently outpace national averages, making solar installation an increasingly attractive option for Michigan homeowners.
Since 2021, Lansing electricity rates have jumped from 17.5 to 19.3 cents per kWh—a 10.3% increase. Michigan’s rates remain approximately 17% higher than the national average.
Solar installation provides Lansing homeowners a path to energy independence by generating clean electricity on-site. With Michigan’s net metering program, excess energy produced can offset high utility costs.
While electricity rates continue climbing annually, solar systems offer predictable energy costs for 25+ years. Lansing homeowners can effectively lock in today’s rates and protect against future utility increases.
Price of Energy: Michigan vs National Average
Lansing Area Utility Providers
In Lansing, 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.
Lansing residents pay higher electricity costs due to Michigan’s aging infrastructure, weather challenges requiring robust systems, and regulatory compliance expenses that utilities pass to consumers.
Solar installation offers Lansing homeowners a path to reduce dependency on utility pricing. With predictable energy costs and potential savings, solar provides a practical alternative as electricity rates continue to rise.
Lansing Utilities Electricity Rates
Michigan Solar Incentives
Lansing homeowners can access valuable solar incentives in Michigan that significantly reduce installation costs and improve your investment’s return.
Michigan offers property tax exemptions that protect you from paying higher property taxes when solar increases your home’s value. The state’s net billing program also provides credits for excess electricity you generate.
These incentives can change over time, so research thoroughly and act promptly to maximize your savings. Contact local 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 energy systems allows municipalities to exempt certain renewable energy installations from property taxes. This incentive is established under Public Act 102 of 2022, which authorizes local authorities to make decisions about property tax assessments for clean energy equipment.
While this legislation creates the framework for property tax exemptions, implementation varies by municipality. Homeowners should check with their local tax assessor to confirm if solar installations are exempt in their specific area. There are no stated dollar limits or expiration dates for this exemption, meaning it could potentially provide ongoing tax savings for the life of your solar system. Before installing solar panels, it’s recommended to verify your eligibility with local authorities to ensure you’ll receive this valuable tax benefit.
Michigan’s Distributed Generation Program (Net Billing) is a solar incentive that credits homeowners for excess electricity their solar panels export to the grid. Unlike traditional net metering which credits exports at the full retail rate, this program credits exported energy at a lower rate that varies by utility. When your solar system produces more electricity than your home uses, the excess flows back to the grid and you receive a credit on your bill.
The credit rates vary across Michigan’s utilities: DTE Energy credits exports at approximately 8.5 cents per kWh during off-peak hours and 14 cents during summer peak hours (4-7pm). Consumers Energy offers between 9-16 cents/kWh depending on season and time of day, with highest values during summer peak (2-7pm). Indiana-Michigan Power provides 12.4 cents/kWh, while Lansing Board of Water & Light offers 6-10 cents/kWh plus an additional 1.3 cents/kWh for the first 5 years if you transfer your Renewable Energy Credits to them. All utilities allow unused credits to roll over month-to-month as dollar amounts that apply to future supply charges.
This program uses monthly settlement, meaning your imports and exports are calculated each billing cycle. While there are no specific eligibility requirements mentioned, the program is designed for residential solar customers. The most important consideration for homeowners is understanding that you’ll pay full retail rate for all electricity you draw from the grid, while receiving a lower rate for what you export – making it beneficial to use as much of your solar production as possible in your home.
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.
Despite Lansing’s snowy winters and variable cloud cover, solar panels can still produce significant energy year-round, capturing abundant summer sunlight and reflecting off snow during winter months.
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 Installations in Lansing
Discover how Lansing, MI is embracing solar energy! We’ve meticulously mapped every solar installation in the area to show how your neighbors are making the switch. Explore our interactive heatmap to see which Lansing communities are leading the clean energy revolution.
Leasing Solar Panels
For Lansing residents, Palmetto offers Power Purchase Agreements (PPAs) through selected utility providers. With DTE Energy and Consumers Energy, you can access PPA options that allow you to purchase solar power at a fixed price per kilowatt-hour instead of owning the equipment outright.
This financing option eliminates upfront installation costs and ongoing maintenance responsibilities. The solar company owns and maintains the system while you simply pay for the clean energy it produces—often at rates lower than standard utility prices.
Unfortunately, Lansing Board of Water & Light (LBWL) customers don’t currently have access to Palmetto’s LightReach program. However, residents serviced by DTE Energy or Consumers Energy can take advantage of these flexible financing options to start saving immediately without the responsibilities of system ownership.
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 Lansing despite Michigan’s seasonal climate. With electricity rates 17% above the national average and rising, solar panels can save homeowners $40,000+ over 25 years.
Lansing residents benefit from the 30% federal tax credit and Michigan’s property tax exemption. Even with fewer winter daylight hours, panels produce efficiently in cold temperatures, often benefiting from snow reflection.
No, Lansing no longer has traditional net metering. In 2022, the Lansing Board of Water & Light (LBWL) replaced it with a Distributed Generation Policy that credits exported electricity at approximately 6-10 cents per kWh, lower than the retail rate.
Under this net billing system, customers receive an additional 1.3 cents/kWh for exports during the first 5 years for transferring Renewable Energy Credit ownership to LBWL. Credits can roll over monthly as dollar amounts applied to future bills.
Yes, solar panels increase home value in Lansing. According to Zillow research, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
This value boost is particularly significant in Lansing where electricity rates are 17% above the national average. Additionally, Michigan’s property tax exemption means homeowners won’t pay higher property taxes on this increased value.
The average cost of solar installation in Lansing is between $14,000-$20,000 after the 30% federal tax credit. For a typical 6.38 kW system, homeowners pay approximately $14,238 after incentives.
Final costs vary based on home size, energy needs, roof conditions, and equipment quality. Most Lansing installations have a payback period of 10-11 years with lifetime savings exceeding $40,000.
Yes, solar is financially worth it in Lansing. With Michigan electricity rates 17% above national averages and continuing to rise, the typical Lansing homeowner saves over $40,000 during a solar system’s 25-year lifespan.
The investment becomes even more attractive with the 30% federal tax credit and Michigan’s property tax exemption. Most Lansing solar installations reach their break-even point in 10-11 years while providing reliable energy production even during Michigan winters.
As a national solar company with strong local presence, we believe Palmetto offers the best solar installation service in Lansing. We’ve completed over 826 Michigan installations since 2020, providing homeowners with industry-leading financing options and exceptional service.
Our comprehensive approach includes custom system design, quality equipment, professional installation, and ongoing monitoring through our dedicated support team. Our Lansing customers consistently praise our transparent process and long-term commitment to their solar success.