Michigan Solar Panels
Solar in Michigan
Thinking about solar energy for your Michigan home? You’re in the right place. With electricity prices climbing 19% since 2020, more homeowners across the Great Lakes State are exploring solar panels for home use as a way to take control of their energy costs.
This guide breaks down everything you need to know about solar installation in Michigan—from costs and incentives to how the state’s unique climate affects solar performance.
Michigan Solar Panel Cost
Our calculator uses real installation data from homeowners across Michigan—from Detroit to Grand Rapids to Ann Arbor—to show you accurate solar costs for your area. Get personalized estimates based on actual local projects, not national averages.
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Key Takeaways
- Michigan electricity rates have climbed 10% since 2021 to 19.3¢/kWh, making solar an increasingly smart investment for homeowners.
- Average Michigan solar systems cost around $20,340 and can save homeowners approximately $54,000 over 25 years.
- Michigan offers valuable solar incentives including property tax exemptions and credits for excess electricity your system produces.
Looking for More Detailed Michigan City Guides?
Explore our comprehensive solar guides for major cities across Michigan to find location-specific information on incentives, installers, and solar potential.
Michigan Electricity Prices
Understanding Michigan electricity costs is key to evaluating your home energy options and planning for the future.
Michigan electricity rates have risen from 17.5 cents per kWh in 2021 to 19.3 cents per kWh in 2024—a 10% increase in just three years. That’s consistently higher than the national average.
Solar panels generate electricity at a fixed cost, insulating homeowners from utility rate increases. Once installed, your system produces power at the same predictable rate for decades, regardless of grid price fluctuations.
Over a typical 25-year lifespan, solar systems can offset hundreds of thousands of kilowatt-hours. That long-term production helps Michigan homeowners maintain more predictable energy expenses as traditional electricity costs continue their upward trend.
Price of Energy: Michigan vs National Average
Michigan Area Utility Providers
Understanding your local utility rates helps you make informed energy decisions. Michigan’s major providers—Consumers Energy, DTE Energy, Great Lakes Energy, and Indiana Michigan Power—charge varying rates, with most exceeding the 2023 national average of 16.0¢ per kWh.
DTE Energy and Consumers Energy, serving the majority of Michigan residents, charge 19.7¢ and 18.8¢ per kWh respectively (2023 data). These rates reflect infrastructure costs, fuel expenses, and regulatory factors. Indiana Michigan Power offers the lowest rate at 15.7¢ per kWh, slightly below the national average.
With most Michigan utilities charging above-average rates, solar panels can help stabilize your energy costs. When you generate your own electricity, you reduce reliance on utility rate increases—giving you more predictable monthly expenses and long-term savings on your energy bills.
Michigan Utilities Electricity Rates
Michigan Solar Incentives
Michigan homeowners have access to valuable solar incentives in Michigan that help offset installation costs and improve long-term savings.
The state offers a property tax exemption that protects you from higher taxes as your home’s value increases with solar. Additionally, Michigan’s Distributed Generation Program provides credits when your system produces excess electricity.
These programs can change, so research current offerings and act when you’re ready. Understanding available incentives 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 (like fire and ambulance services) and their ability to issue bonds and levy taxes. This legislation does not appear to be about solar energy or renewable energy property tax exemptions.
Michigan does have a legitimate solar property tax exemption under a different statute, but the document provided does not contain information about that incentive. To create an accurate description of Michigan’s Property Tax Exemption for solar installations, I would need the correct source material that specifically addresses renewable energy systems and property tax treatment.
If you’re looking for information about Michigan’s actual solar property tax exemption, please provide documentation that specifically references solar energy systems, renewable energy equipment, or similar clean energy property tax provisions. This will ensure I can give you accurate, helpful information for Michigan homeowners considering solar installation.
Michigan’s Distributed Generation Program uses a net billing system where your solar energy is tracked differently than traditional net metering. When your solar panels produce electricity, any power you use immediately in your home helps you avoid paying the retail rate for electricity. However, any excess solar energy you send back to the grid is credited at a lower rate than what you pay for electricity from the utility.
The credit you receive for exported solar energy varies by utility company and time of day. DTE Energy customers receive approximately 8.5 cents per kilowatt-hour during off-peak times 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 the first 5 years if you transfer renewable energy credits to them). Any unused export credits roll over month-to-month as dollar amounts that apply to future electricity bills.
This program is available to all residential solar customers in Michigan, though the specific rates and terms depend on your utility provider. Because you maximize savings by using solar energy as it’s generated rather than exporting it, pairing your solar system with energy-efficient practices or battery storage can help you get the most value from your investment.
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 QuoteMichigan Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Michigan’s solar potential surprises many. Despite cloudy winters and shorter days up north, the state receives ample sunlight year-round. Properly designed systems consistently generate strong energy production statewide.
What Can the Average Michigan Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Michigan 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 Michigan 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 Michigan
We’ve mapped every solar installation across Michigan to help you discover which neighborhoods are leading the clean energy transition. Explore this interactive map to see how many of your neighbors have already made the switch to solar power.
Leasing Solar Panels
Michigan homeowners can access solar through flexible financing options beyond traditional purchase. For customers served by DTE Energy and Consumers Energy, Palmetto offers Power Purchase Agreements (PPAs) through our LightReach program. With a PPA, you pay only for the electricity your system generates at a set rate per kilowatt-hour—no upfront costs, no maintenance responsibilities.
LightReach simplifies solar ownership. Palmetto designs, installs, and maintains your system while you enjoy predictable energy costs and comprehensive protection. If your panels don’t meet our 90% production guarantee, we credit you the difference. This approach works well if you prefer avoiding large upfront investments while still benefiting from clean energy.
Note that LightReach availability varies by utility provider. Indiana-Michigan Power and Lansing Board of Water & Light customers currently don’t have access to this program, though traditional purchase options remain available statewide.
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 for many Michigan homeowners. Despite the state’s cloudy reputation, Michigan receives enough sunlight to generate strong solar production year-round. With electricity rates climbing 10% since 2021 to 19.3¢/kWh—consistently above the national average—solar panels help you lock in predictable energy costs.
The average Michigan system costs around $20,340 and can save approximately $54,000 over 25 years. State incentives like property tax exemptions and net billing credits further improve the financial picture, making solar a practical investment for long-term savings.
No, Michigan does not have traditional net metering. The state uses a net billing system where excess solar energy is credited at rates lower than retail electricity prices. Credits range from 6-16¢/kWh depending on your utility and time of day, compared to the state average retail rate of 19.3¢/kWh.
DTE Energy, Consumers Energy, Indiana-Michigan Power, and Lansing Board of Water & Light each have different credit rates. Unused credits roll over monthly as dollar amounts applied to future bills. You maximize savings by using solar energy as it’s generated rather than exporting it to the grid.
Yes, solar panels typically increase home value in Michigan. Research from Zillow shows that homes with solar panels sell for approximately 4.1% more than comparable homes without solar systems.
For a Michigan home valued at $200,000, that translates to roughly $8,200 in added value. Additionally, Michigan’s property tax exemption protects you from higher taxes on your solar system’s added value, allowing you to benefit from the increased home worth without increased tax burden.
The average Michigan solar system costs around $20,340 for a 6.38 kW installation, which works out to approximately $3.19 per watt. This figure represents the full system cost based on actual installations across the state.
Your final cost depends on your home’s energy usage, roof characteristics, and available incentives. Michigan offers a property tax exemption that protects you from higher taxes as your home value increases with solar. Most homeowners see monthly savings of about $123, with a payback period of roughly 11.6 years.
For most Michigan homeowners, solar makes financial sense. With electricity rates at 19.3¢/kWh and climbing 10% since 2021, solar helps lock in predictable energy costs. The average system costs $20,340 and saves approximately $54,000 over 25 years.
Your payback period averages 11.6 years, with monthly savings around $123. Michigan’s property tax exemption and net billing credits improve returns. Solar’s financial value depends on your energy usage, roof characteristics, and how long you plan to stay in your home.
We’ve completed 826 solar installations across Michigan since 2020, serving homeowners from Detroit to Grand Rapids with our proven track record. Our national reach gives us competitive financing options, while our local installation partners understand Michigan’s unique climate and building requirements.
We offer flexible payment options including Power Purchase Agreements (PPAs) through our LightReach program for customers served by DTE Energy and Consumers Energy. Our systems come with comprehensive warranties and production guarantees, giving you peace of mind throughout your solar journey.