Saginaw, MI
Solar in Saginaw
Considering solar panel installation in Saginaw, MI? With Michigan’s electricity prices having increased 19% from 2020 to 2024, many homeowners are turning to home solar panels as a smart solution to reduce rising utility costs.
Despite seasonal weather variations, Saginaw offers excellent solar potential, allowing residents to generate clean energy while potentially saving money on monthly electric bills for years to come.
Key Takeaways
- Solar panels work well in Saginaw despite seasonal weather, with systems typically paying for themselves in under 11 years while saving homeowners $40,000+ over 25 years.
- Michigan electricity prices have risen 19% since 2020, making solar an attractive solution for Saginaw homeowners looking to stabilize energy costs.
- Federal tax credits reduce system costs by 30%, saving Saginaw homeowners an average of $6,102 on solar installation with no increase in property taxes.
Solar Cost Calculator
Discover the true cost of solar installation in Saginaw with Palmetto’s exclusive calculator. Using real data from our installations across Saginaw, Carrollton, Zilwaukee, and Buena Vista, we provide accurate estimates tailored to your home. Make informed decisions about clean energy with local, reliable information.
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Estimated Investment and Savings
Based on Palmetto Solar installations in Michigan. Current electricity rate: 19.3¢/kWh. Assumes 70% credit of retail rate.
Saginaw Electricity Prices
Saginaw residents face electricity costs that consistently outpace the national average, with local rates hitting 19.3 cents per kWh in 2024—nearly 17% higher than the U.S. average.
Michigan electricity prices have steadily climbed over recent years, increasing from 17.5 cents per kWh in 2021 to 19.3 cents in 2024—a concerning 10.3% rise that continues to impact Saginaw households.
Solar installation offers Saginaw homeowners a practical solution to these rising costs. By generating your own clean electricity, you can significantly reduce dependence on increasingly expensive utility power.
While traditional electricity costs continue their upward trend, solar provides long-term price stability. Once installed, your system delivers predictable energy costs for decades, protecting your budget from future rate hikes.
Price of Energy: Michigan vs National Average
Saginaw Area Utility Providers
Saginaw residents are primarily served by Consumers Energy and DTE, with 2023 rates of 18.8¢ and 19.7¢ per kWh respectively—both exceeding the national average of 16.0¢ per kWh.
Saginaw’s electricity costs match or exceed Michigan’s state average of 18.8¢ per kWh. These higher rates reflect infrastructure maintenance costs, weather-related challenges, and the region’s gradual transition to renewable energy sources.
With utility costs consistently above national averages, Saginaw homeowners can benefit from solar installation to reduce long-term electricity expenses. Solar provides price stability against future utility rate increases while supporting energy independence.
Saginaw Utilities Electricity Rates
Michigan Solar Incentives
Saginaw homeowners can significantly reduce solar installation costs through federal tax credits and solar incentives in Michigan designed specifically to make renewable energy more affordable.
Michigan offers Saginaw residents two key incentives: a Property Tax Exemption that prevents your property taxes from increasing when you add solar, and the Distributed Generation Program that credits you for excess electricity production.
These incentives can change over time, so research thoroughly and act promptly to maximize your savings. Contact local solar experts to understand how these programs apply to your specific Saginaw property.
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 in the legislation, but eligibility requirements and exemption amounts are determined at the local level. This exemption can significantly reduce the long-term cost of owning a solar system by preventing increases in property taxes that might otherwise result from these home improvements.
Michigan’s Distributed Generation Program (Net Billing) is a solar incentive structure that allows homeowners with solar panels to receive credit for excess electricity they export to the grid. Unlike traditional net metering which credits exports at the full retail rate, this program credits exported electricity at a lower rate that varies by utility company. When your solar system produces more electricity than your home is using, that excess power flows back to the grid, and you receive a credit on your bill based on your utility’s specific export rate.
The financial benefit varies by utility provider: DTE Energy customers receive approximately 8.5 cents per kWh during off-peak hours and around 14 cents during summer peak hours (4-7pm). Consumers Energy provides between 9-16 cents/kWh depending on season and time of day, with highest values during summer peak (2-7pm). Indiana-Michigan Power offers 12.4 cents/kWh, while Lansing Board of Water & Light provides approximately 6-10 cents per 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 excess credits to roll over month-to-month as a dollar amount that can be applied to future bills.
This program is available to residential solar customers connected to participating Michigan utilities. There are no specific deadlines to enroll, but rates and program details may change over time, so it’s advisable to check with your specific utility for the most current information. Homeowners should note that while this program provides less compensation than traditional net metering, you still receive the full retail value for solar energy used directly in your home, which makes self-consumption of solar energy particularly valuable under this program structure.
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 QuoteSaginaw 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 Saginaw’s snowy winters, solar panels can thrive here! With long summer days and advanced panel technology, homeowners can harness significant energy year-round, even during cloudy periods.
Solar Production in Saginaw 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 Saginaw
Discover the solar revolution in Saginaw! Our interactive heatmap showcases all solar installations across neighborhoods, allowing you to see how your community is embracing clean energy. Click any hexagon to reveal the number of homes that have made the switch to solar power.
Leasing Solar Panels
Saginaw residents have flexible solar financing options through Palmetto’s LightReach Power Purchase Agreement (PPA). Available to customers of both DTE Energy and Consumers Energy, a PPA allows you to go solar with zero upfront cost while paying only for the power your system produces at a predetermined rate per kilowatt-hour.
Unlike purchasing panels outright, a PPA eliminates maintenance concerns and repair costs, as Palmetto handles all system upkeep. This option provides immediate savings without requiring you to manage the solar equipment yourself, making clean energy accessible to more homeowners.
For those weighing solar options, comparing buying versus leasing can help determine the best approach for your financial situation. A PPA offers predictable energy costs with no maintenance responsibilities, making solar power accessible to more Saginaw homeowners.
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 Saginaw despite seasonal weather variations. Michigan’s electricity prices have risen 19% since 2020, making solar an attractive option for stabilizing energy costs.
With the 30% federal tax credit and Michigan’s property tax exemption, Saginaw homeowners can see systems paying for themselves in under 11 years while saving $40,000+ over their 25-year lifespan.
No, Saginaw doesn’t have traditional net metering. Instead, Michigan utilities offer a Net Billing program where excess solar energy exported to the grid is credited at less than retail rates.
In Saginaw, Consumers Energy customers receive between 9-16¢/kWh for exports depending on time of day, while DTE Energy customers get approximately 8.5¢/kWh off-peak and 14¢/kWh during summer peak hours (4-7pm).
Yes, solar panels increase home value in Saginaw. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
For Saginaw homeowners, this means a typical $150,000 home could gain about $6,150 in value. Additionally, Michigan’s property tax exemption ensures your property taxes won’t increase from this added value.
In Saginaw, a typical 6.38kW solar system costs around $20,340, but with the 30% federal tax credit, the final cost drops to approximately $14,238.
System prices vary based on home size, with smaller 5kW systems costing about $11,721 after incentives, while larger 9kW systems run around $19,653. Most Saginaw installations achieve payback in under 11 years.
Solar is typically a sound financial investment in Saginaw. With electricity prices rising 19% since 2020, a solar system can pay for itself in under 11 years while providing $40,000+ in savings over 25 years.
The 30% federal tax credit reduces initial costs significantly, and Michigan’s property tax exemption ensures your property taxes won’t increase. Self-generating electricity also protects against future utility rate hikes.
As a national company with a strong local presence in Michigan, Palmetto is the preferred choice for Saginaw homeowners. With over 826 installations across Michigan since 2020, we offer some of the industry’s best financing options.
Our comprehensive service includes professional installation, ongoing monitoring, and maintenance through our experienced local network, ensuring optimal system performance for decades.