Lansing, MI Solar Panels
Solar Power in Lansing
If you live in Lansing, you’ve likely noticed your energy bills climbing. Michigan electricity prices have jumped 19% from 2020 to 2024, and at 19.29 cents per kWh, local homeowners pay more than the 16.6-cent national average. Whether you’re served by the Lansing Board of Water & Light or Consumers Energy, many residents are exploring solar to take more control over their energy costs.
This guide breaks down solar installation in Lansing in simple, clear terms. Drawing on Palmetto’s experience with local installations, our home solar panels guide can help you learn more.
How Much Do Solar Panels Cost in Lansing, MI?
See what solar really costs in Lansing with our calculator, built from real installation data across the area, including East Lansing, Okemos, Holt, DeWitt, and Grand Ledge. No guesswork or generic estimates—just clear, local numbers to help you understand what solar could mean for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Lansing electricity prices keep climbing, reaching 19.3¢ per kWh in 2024—well above the 16.5¢ national average—making solar an appealing way to gain cost control.
- Local incentives can lower your solar cost, including the LBWL rebate of $500 per kW, Michigan Saves financing, and a property tax exemption on added home value.
- Leasing lets you go solar with no upfront cost, since Palmetto’s LightReach program owns and maintains the system while passing savings to you through predictable monthly payments.
Lansing Electricity Prices
Have you noticed your Lansing energy bills climbing? You’re not imagining it—electricity prices here keep rising year after year.
Michigan electricity prices have steadily increased, reaching 19.3 cents per kWh in 2024. That’s well above the national average of 16.5 cents, meaning Lansing homeowners pay more than most Americans for their power.
As rates rise, many Lansing residents served by the Lansing Board of Water & Light or Consumers Energy are exploring solar. Producing your own power can help reduce how much you buy from the grid at these higher prices.
Over time, solar offers something rising rates can’t: predictability. Instead of watching your bills climb each year, you gain more control over your energy costs and a clearer picture of your long-term household budget.
Price of Energy: Michigan vs National Average
Lansing Area Utility Providers
If you live in Lansing, you’ve likely noticed your energy bills climbing. In 2023, Consumers Energy charged 18.8¢ per kWh—well above the 16.0¢ national average and right in line with Michigan’s 18.80¢ state average.
Why the higher cost? Michigan relies heavily on fuels shipped in from other states, plus aging grid infrastructure and harsh winters that strain the system. These factors push prices above what many other regions pay.
Solar offers a way to take more control over these rising costs. By generating your own power, you can rely less on the grid and gain more predictable energy expenses for years to come.
Lansing Utilities Electricity Rates
Michigan Solar Incentives
Several solar incentives in Michigan can lower the cost of solar installation in Lansing, from rebates to tax exemptions and low-interest financing.
Lansing homeowners may qualify for the LBWL solar rebate of $500 per kW, Consumers Energy’s SolarCurrents production incentive, and Michigan’s property tax exemption on added home value from solar systems.
While the federal tax credit has ended, these state and local incentives remain. Leasing through LightReach simplifies things—Palmetto handles the commercial credit and passes savings on via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Michigan Property Tax Exemption for Solar | Property Tax Exemption | Michigan law exempts the added home value from a solar energy system (up to 150 kW) from property tax assessments, saving homeowners hundreds of dollars per year. | Learn More |
| Lansing Board of Water & Light (LBWL) – Solar Rebate | Rebate | LBWL offers Lansing residential solar customers a rebate of $500 per kW of installed capacity, up to a maximum of $2,000 for systems up to 4 kW. | |
| Michigan Saves – Home Energy Loan Program | Rebate | Michigan Saves offers homeowners low-interest financing for solar and battery storage installations, with loan amounts from $1,000 to $50,000 at rates between 4.44% and 7.90% for terms up to 15 years. | |
| PACE Financing – Lean & Green Michigan (Commercial/Agricultural) | Rebate | Lean & Green Michigan’s PACE program allows commercial, agricultural, and nonprofit property owners to finance solar and battery storage with no upfront costs, repaying through their property tax bill over up to 25 years. |
Michigan’s property tax exemption, established under MCL 211.7hh, ensures that when you install a solar energy system on your home, the increased value it adds to your property is not counted in your tax assessment. This means your property taxes will not go up as a result of going solar — a significant long-term benefit for homeowners in Lansing.
The exemption applies to residential solar systems up to 150 kW in capacity, which covers virtually all home installations (most Michigan residential systems are 8–12 kW). The exemption also covers battery storage equipment paired with your solar system. At Michigan’s average property tax rate of approximately 1.25%, a $25,000 solar system could otherwise add $300–$435 per year to your tax bill — savings that compound to $6,000–$8,700 over a 20-year system lifespan.
This exemption applies automatically statewide and does not require a separate application by the homeowner. It was reinstated in 2019 under Governor Whitmer and remains fully active in 2026.
The Lansing Board of Water & Light (LBWL) offers a solar rebate program exclusively for residential customers within its Lansing, Michigan service territory. The rebate is $500 per kilowatt (kW) of installed solar capacity, with a maximum rebate of $2,000 for systems up to 4 kW in size.
Since the average solar array size in the Lansing area is approximately 7 kW, most eligible residents will qualify for the full $2,000 maximum rebate. This upfront cash rebate directly reduces your out-of-pocket installation costs and can be combined with Michigan’s state-level sales and property tax exemptions as well as the LBWL’s net metering credits.
Contact LBWL directly before scheduling your installation to confirm current program availability, eligibility requirements, and the application process, as rebate funding may be limited. Visit lbwl.com for the most current program details and to begin the enrollment process.
Michigan Saves is a nonprofit green bank that offers homeowners access to competitive financing for solar panel and battery storage installations. Through its Home Energy Loan Program, Michigan Saves negotiates favorable interest rates with a network of participating lenders, offering current rates between 4.44% and 7.90% APR — often lower than standard home improvement loans or credit cards.
Eligible loan amounts range from $1,000 to $50,000, with repayment terms of up to 15 years, making it possible to finance a full solar-plus-storage system with manageable monthly payments. The program is available to Michigan homeowners statewide, including residents of Lansing, and can be used for new solar installations, battery storage additions to existing systems, or solar system upgrades.
To apply, visit michigansaves.org to find a participating lender and contractor in your area. Michigan Saves-approved contractors have been vetted for quality and can help guide you through both the installation and financing process.
Property Assessed Clean Energy (PACE) financing, administered in Michigan by Lean & Green Michigan, is a powerful tool for commercial, industrial, multifamily housing, agricultural, and nonprofit property owners looking to install solar panels or battery storage with no upfront out-of-pocket costs. Under PACE, the cost of the solar installation is repaid through an assessment added to the property’s tax bill over a period of up to 25 years.
Because repayment is tied to the property rather than the individual borrower, PACE financing can be easier to qualify for than traditional loans and does not require a large down payment. If the property is sold before the loan is repaid, the remaining balance can transfer to the new owner along with the solar system — a feature that can also be a selling point for the property.
PACE is available for commercial, agricultural, and nonprofit properties in Michigan — it is not available for standard single-family residential properties. Contact Lean & Green Michigan directly at leanandgreenmichigan.com to learn more about eligibility, participating lenders, and how to begin the application process.
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 sees snowy winters and shorter daylight hours, which affect seasonal solar production. But summer’s long, sunny days more than compensate. With the right system, Lansing homes can generate plenty of clean energy.
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 the country, right down to the neighborhood level. Explore our interactive heatmap of Lansing, MI to see how many of your neighbors have already switched to solar. Click any hexagon to discover the number of installations in that community.
Leasing Solar Panels
In Lansing, homeowners served by Consumers Energy can go solar through a Power Purchase Agreement (PPA) with Palmetto’s LightReach program. If your utility is the Lansing Board of Water & Light, LightReach financing isn’t available in your area yet, but you can still explore buying a system outright.
With a PPA, you don’t pay upfront for panels. Instead, you simply pay a set price per kilowatt-hour for the clean energy your system produces—often less than your current utility rate. Because solar output rises in summer and dips in winter, your payments shift with production, though yearly costs stay predictable. You can learn more about how this compares in our guide to buying versus leasing solar.
Unlike paying cash, a PPA means no big initial investment and no maintenance worries—Palmetto owns, monitors, and services the system for you. See how it works with LightReach.
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!
Explore LightReach LeasingFrequently Asked Questions
Lansing does not offer traditional 1:1 net metering. The Lansing Board of Water & Light (LBWL) ended full net metering on November 1, 2022. New solar customers now fall under a Distributed Generation Policy.
Under this policy, energy you export to the grid earns a credit of roughly 6 to 10 cents per kWh, while power you pull from the grid is billed at the retail rate. Solar you use directly in your home avoids these retail charges. Customers can also earn an extra 1.3 cents/kWh for five years by transferring renewable energy credits to LBWL.
Yes, in many cases solar panels can increase your Lansing home’s value—but this benefit applies to systems you own or purchase, not leased or PPA systems. A Zillow study found that homes with solar panels sell for about 4.1% more on average.
With a leased or LightReach system, resale works differently, since the buyer may need to assume the existing lease agreement. Michigan also exempts the added solar value from property tax assessments.
Many Lansing homeowners go solar through Palmetto’s LightReach lease, which starts around $78 per month for a medium home—with no upfront cost, and Palmetto owns and maintains the system.
A cash purchase is another option, running about $21,500 for a 6.80 kW system. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 law change. See the calculator above for pricing by home size.
With LightReach, Palmetto’s all-inclusive solar lease, you make one simple monthly payment that covers your panels, installation, monitoring, maintenance, and a 90% Production Guarantee. There’s no upfront cost, and your payment is typically less than your current Lansing electricity bill, so you can save from day one.
For a typical 6.80 kW system in Lansing, MI, the estimated payment is about $78/month. Palmetto owns the system and passes federal tax credit savings to you.
Lansing homeowners can access several state and local solar incentives. The Lansing Board of Water & Light offers a rebate of $500 per kW (up to $2,000), Michigan provides a property tax exemption on the added home value, and Michigan Saves offers low-interest financing.
The federal 30% tax credit is no longer available for cash purchases after the 2025 law change. However, LightReach leasing still benefits, since Palmetto claims the commercial credit and passes those savings through in lower monthly payments.
Solar panels are low maintenance. Because they have no moving parts, they typically need little more than occasional cleaning, and Michigan’s rain and snow often handle that on their own.
With Palmetto’s LightReach program, you don’t have to worry about upkeep at all. Palmetto owns the system and handles all maintenance, monitoring, and repairs at no extra cost. It also includes a 90% Production Guarantee, so your Lansing home stays powered reliably.
Yes. Solar panels work well in Lansing’s climate. The area averages about 4.4 peak sun hours per day, and panels still generate power on cloudy or overcast days, just at reduced levels.
Production shifts with the seasons. Long summer days deliver the most energy, while shorter, snowier winter days produce less. A properly sized system accounts for this seasonal swing, so your Lansing home can generate meaningful clean energy across the entire year.