Solar Guide
Solar in Lansing
Considering solar panel installation for your Lansing home? You’ve found the right resource. With Michigan’s electricity rates at 19.29 cents per kWh—well above the national average of 16.6 cents—and prices climbing 19% since 2020, local homeowners are increasingly turning to solar energy solutions.
This comprehensive guide walks you through everything about solar installation in Lansing, from understanding costs and available incentives to navigating installation timelines and local requirements. We’ll help you make an informed decision about home solar panels for your property.
Key Takeaways
- Michigan homeowners save an average of $6,102 through federal tax credits and property tax exemptions on solar installations.
- Lansing’s electricity rates are 17% higher than the national average at 19.3¢ per kWh, making solar savings more significant.
- A typical 6.38 kW solar system in Lansing generates $40,173 in savings over 25 years with an 10.9-year payback period.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Lansing neighborhoods like East Lansing, Okemos, Holt, and Grand Ledge. Get accurate pricing estimates based on actual local projects, not generic estimates.
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Cost
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Lansing Electricity Prices
Understanding Lansing’s electricity costs helps homeowners make informed energy decisions for their homes and budgets.
Michigan’s electricity rates have steadily climbed from 17.5 cents per kWh in 2021 to 19.3 cents in 2024, consistently exceeding national averages.
Solar panels generate electricity from sunlight, helping homeowners reduce their dependence on grid power and buffer against these rising utility costs.
Over 25+ years, solar systems can provide predictable energy costs while traditional electricity rates continue their upward trend in Michigan.
Price of Energy: Michigan vs National Average
Lansing Area Utility Providers
Lansing residents get electricity from Consumers Energy, which charged 18.8¢ per kWh in 2023. This matches Michigan’s state average but sits above the national average of 16.0¢.
Michigan’s electricity costs reflect the state’s energy mix and infrastructure investments. Consumers Energy has been upgrading the grid and transitioning to cleaner energy sources, contributing to current pricing.
With electricity rates 17% higher than the national average, Lansing homeowners often explore solar to stabilize their energy costs and reduce dependence on traditional utility pricing.
Lansing Utilities Electricity Rates
Michigan Solar Incentives
Lansing homeowners can significantly reduce solar installation costs through available solar incentives in Michigan and federal programs.
Michigan offers property tax exemptions that protect you from increased assessments on your solar system’s added home value, providing ongoing annual savings.
The state’s net billing program allows you to receive credits for excess electricity your panels generate 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 a solar property tax exemption program. The legislation (Senate Bill 821) deals with emergency services authorities’ powers to issue bonds and levy taxes, but 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 incentive, I would need the correct legislative text or official documentation that specifically addresses solar energy systems and property tax exemptions. If you could provide the proper source material 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 (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. You’ll still pay the full retail rate for electricity you use from the grid, but any solar power you generate and don’t immediately use gets credited at a lower wholesale-style rate.
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 bonus for the first five years. All excess credits roll over month-to-month as dollar amounts that can be applied to future electric bills.
This program is available to all residential solar customers in Michigan, with monthly settlement periods across all participating utilities. The key consideration for homeowners is that maximizing your solar savings means using as much of your generated electricity as possible during daylight hours, since the solar power you consume directly avoids paying the higher retail rates. Credits for excess generation provide value, but at reduced rates compared to what you pay for grid electricity.
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’s continental climate brings snowy winters and variable cloud cover, but Michigan’s solar incentives and modern panels make solar surprisingly effective year-round.
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
We’ve mapped every solar installation across America to show you the clean energy revolution happening right in your backyard. Explore this interactive map to discover which Lansing neighborhoods and communities have already made the switch to solar power!
Leasing Solar Panels
In Lansing, Palmetto offers Power Purchase Agreements (PPA) as an alternative to buying solar panels outright. This option is available for customers served by DTE Energy and Consumers Energy, making solar accessible to most Lansing homeowners.
With a PPA, you agree to purchase the power generated by your solar system at a set price per kilowatt-hour instead of paying a fixed monthly amount. This means your solar bills will be higher during summer months when panels produce more electricity, but you’ll also see greater savings on your utility bills during those peak production periods.
The key advantage of choosing a PPA over paying cash is eliminating the upfront investment while still accessing solar savings immediately. Palmetto handles all system maintenance and monitoring through our LightReach program, so you can enjoy clean energy benefits without worrying about repairs or performance issues that come with 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 sense in Lansing. With Michigan’s electricity rates at 19.3¢ per kWh—17% higher than the national average—solar panels provide meaningful savings for local homeowners.
A typical 6.38 kW system generates $40,173 in savings over 25 years with a 10.9-year payback period. Federal tax credits reduce upfront costs by 30%, and Michigan’s property tax exemption protects you from increased assessments on your solar system’s added home value.
No, Lansing does not have traditional net metering. Lansing Board of Water & Light (LBWL) ended 1:1 net metering on November 1, 2022, replacing it with a net billing program.
Under the current system, excess solar energy exported to the grid is credited at 6-10 cents per kWh (varying monthly), while electricity from the grid is charged at full retail rates. Customers receive an additional 1.3 cents/kWh for exports during the first 5 years when transferring Renewable Energy Credits to LBWL.
Yes, solar panels typically increase home value in Lansing, MI. A Zillow study shows solar panels increase home value by 4.1% on average across the United States.
For Lansing homeowners, this means a $200,000 home could see an $8,200 value increase with solar installation. Michigan’s property tax exemption also protects you from higher assessments on your solar system’s added value, allowing you to benefit from increased home worth without paying additional property taxes.
Solar installation costs in Lansing 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 $14,238 after the 30% federal tax credit. This system generates approximately $40,173 in savings over 25 years with a 10.9-year payback period.
Yes, solar is financially worth it in Lansing. With Michigan’s electricity rates 17% higher than the national average at 19.3¢ per kWh, solar provides substantial long-term savings for homeowners.
A typical 6.38 kW system costs $14,238 after federal tax credits and generates $40,173 in savings over 25 years with a 10.9-year payback period. The 30% federal tax credit and Michigan’s property tax exemption further improve the financial benefits.
We believe Palmetto Solar is the best choice for Lansing homeowners. As a national company with local focus, we’ve completed 826 installations across Michigan since 2020, demonstrating our commitment to the state.
We offer some of the industry’s best financing options and work with a trusted installation network. Our approach combines national resources with personalized service, ensuring Lansing residents receive quality solar solutions tailored to their specific needs.