Lansing, MI Solar Panels
Solar Power in Lansing
Considering solar energy for your Lansing home? You’re in the right place. With Michigan electricity prices jumping 19% from 2020 to 2024, more homeowners are exploring how solar panels for home use can help offset rising energy costs.
This guide breaks down everything you need to know about solar installation in Lansing, Michigan—from local incentives to what makes a home a good fit for solar.
How Much Do Solar Panels Cost in Lansing, MI?
Our calculator uses real installation data from Lansing homeowners—including those in East Lansing, Okemos, Holt, and DeWitt—to show you what solar actually costs in your area. Get accurate pricing based on local projects, not national estimates.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Lansing electricity rates increased 10% since 2021 to 19.3¢/kWh, making solar panels an effective way to lock in predictable energy costs.
- A typical 6.38 kW solar system in Lansing costs around $20,340 and can save homeowners approximately $40,000 over 25 years.
- Michigan’s Property Tax Exemption and Distributed Generation Program help reduce the cost of going solar while providing credits for excess energy production.
Lansing Electricity Prices
Understanding electricity costs in Lansing helps you make informed decisions about your home’s energy future and long-term budget planning.
Michigan electricity rates have climbed steadily from 17.5 cents per kWh in 2021 to 19.3 cents in 2024—a 10% increase in just three years. That’s notably higher than the national average of 16.5 cents per kWh.
Solar panels generate electricity at a fixed cost, effectively locking in your energy rate for decades. While utility prices continue rising, your solar investment maintains consistent production costs, insulating your household budget from future increases.
Over a typical 25-year system lifespan, this price stability can translate to significant savings. Lansing homeowners who switch to solar today protect themselves from decades of projected utility rate increases while reducing grid dependence.
Price of Energy: Michigan vs National Average
Lansing Area Utility Providers
Lansing residents are served primarily by Consumers Energy and DTE Energy. According to 2023 data, both utilities charge rates above the national average of 16.0¢ per kWh.
Consumers Energy’s rate sits at 18.8¢ per kWh, while DTE Energy charges 19.7¢ per kWh—matching or exceeding Michigan’s state average of 18.80¢. These higher rates reflect infrastructure costs and Michigan’s energy generation mix.
Higher electricity rates mean Lansing homeowners pay more monthly, but also see greater savings potential with solar. Locking in a fixed energy cost through solar helps protect against future rate increases.
Lansing Utilities Electricity Rates
Michigan Solar Incentives
Michigan offers several solar incentives in Michigan that help reduce the upfront cost of going solar in Lansing.
The Property Tax Exemption protects you from paying additional property taxes on your solar system’s added home value. Meanwhile, the Distributed Generation Program provides credits when your system produces excess electricity sent back to the grid.
These programs can change over time, so it’s worth researching current rates and eligibility. Understanding what’s available helps you make an informed decision about solar.
| 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 clarify an important issue with this request. The document you’ve provided is Michigan Senate Bill 821 from 2022, which relates to emergency services authorities and their ability to issue bonds and levy taxes. This legislation is about emergency services (like fire departments and ambulance services) and their financing mechanisms—it does not contain any information about solar energy systems or property tax exemptions for renewable energy installations.
Michigan does have a separate solar property tax exemption program, but it would be governed by different legislation (typically found in Michigan’s property tax statutes). To create an accurate description of Michigan’s solar Property Tax Exemption incentive, I would need the correct source documentation that specifically addresses renewable energy systems and their treatment under property tax law. If you can provide the appropriate legislation or official documentation for Michigan’s solar property tax exemption, I’d be happy to create a clear, helpful explanation for homeowners considering solar energy.
Michigan’s Distributed Generation Program uses a net billing system where your solar energy is valued differently depending on when and where it’s produced. Unlike traditional net metering where you receive full retail credit for excess solar energy, net billing credits your exports to the grid at a reduced rate while you pay the full retail rate for electricity you draw from the grid. The good news is that any solar energy you use directly in your home still offsets your electricity costs at the full retail rate, maximizing your savings when you consume power during the day.
The credit you receive for excess solar energy varies by utility company and time of day. DTE Energy customers on the Standard Time of Day rate receive approximately 8.5 cents per kWh during off-peak hours 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 credits during summer peak (2-7pm). Indiana-Michigan Power offers 12.4 cents per kWh, while Lansing Board of Water & Light provides approximately 6-10 cents per kWh, plus an additional 1.3 cents per kWh for five years when you transfer your Renewable Energy Credits to the utility. All utilities allow you to roll over excess credits month-to-month as dollar amounts that apply to future supply charges on your bills.
This program is available to homeowners installing solar systems with participating Michigan utilities. There are no specific deadlines mentioned, though it’s worth noting that Lansing Board of Water & Light transitioned from traditional net metering to this net billing structure in November 2022. To maximize your financial benefit, consider sizing your system to match your daytime energy consumption, as electricity you use directly from your panels provides greater value than energy exported to the grid.
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 experiences distinct seasons with cold, cloudy winters and sunny summers. While winter snow and shorter days reduce production, annual sunlight totals make solar surprisingly effective year-round here.
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 every solar installation across Lansing to help you explore the clean energy movement in your community. Click any hexagon to see how many neighbors in that area have already made the switch to solar power.
Leasing Solar Panels
In Lansing, homeowners served by Lansing Board of Water & Light (LBWL) don’t have access to Palmetto’s LightReach leasing program. However, if you’re in nearby areas served by DTE Energy or Consumers Energy, you can take advantage of Power Purchase Agreements (PPAs).
With a PPA, you pay for the electricity your panels produce at a set rate per kilowatt-hour rather than purchasing the system outright. This means no large upfront investment, and Palmetto handles all maintenance and repairs. Your monthly cost varies with production—typically higher in summer when panels generate more power, lower in winter.
Compared to paying cash, a PPA eliminates the burden of system maintenance, monitoring, and unexpected repair costs. You simply enjoy the solar energy your panels produce while Palmetto ensures everything runs smoothly for the life of your agreement.
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 Lansing. With electricity rates at 19.3¢/kWh—10% higher than three years ago—and 4.4 peak sun hours daily, solar panels can offset rising energy costs. A typical 6.38 kW system costs around $20,340 and could save approximately $40,000 over 25 years.
Michigan’s Property Tax Exemption and Distributed Generation Program provide additional financial benefits. While winter production is lower, annual sunlight totals make solar effective year-round in Lansing.
No, Lansing does not have traditional 1:1 net metering. The Lansing Board of Water & Light (LBWL) ended net metering on November 1, 2022, and now operates under a Distributed Generation Policy.
Under this system, you pay the full retail rate for electricity you use from the grid, but excess solar energy sent back to the grid is credited at a reduced rate of approximately 6-10 cents per kWh. Solar energy you use directly in your home still avoids purchases at the full retail rate. LBWL customers also receive an additional 1.3 cents per kWh for five years when transferring Renewable Energy Credit ownership to the utility.
Yes, solar panels can increase your home value in Lansing. Research shows that homes with solar energy systems sell for more than comparable homes without them.
A Zillow study found that solar panels increase home value by 4.1% on average across the U.S. For a median-priced Lansing home, this could translate to thousands of dollars in added value. Additionally, Michigan’s Property Tax Exemption means you won’t pay higher property taxes on your solar system’s added value.
The cost to go solar in Lansing depends 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 around $20,340, or about $3.19 per watt.
Smaller homes may need a 5.10 kW system ($16,744), while larger homes might require 9.13 kW ($28,075). These prices reflect actual Palmetto installations in the Lansing area and include equipment, installation, and permitting.
Yes, solar is financially worth it for most Lansing homeowners. With electricity rates at 19.3¢/kWh and rising 10% since 2021, a typical 6.38 kW system costing $20,340 could save approximately $40,000 over 25 years—an average of $92 monthly.
The payback period is around 14.7 years, meaning you’ll enjoy over a decade of essentially free electricity. Michigan’s Property Tax Exemption and net billing credits further improve returns by reducing costs and compensating excess production.
At Palmetto Solar, we’ve completed 826 installations across Michigan since 2020, bringing our national expertise to your local community. We offer flexible financing options that make solar accessible, paired with a trusted network of professional installers.
Our approach combines quality equipment with personalized service—from your free quote through system activation and beyond. We handle permitting, installation, and ongoing support, making your transition to solar straightforward and stress-free.