Solar energy in Michigan

Michigan is advancing its green initiatives by expanding solar programs and promoting the adoption of renewable energy sources. Solar power is gaining popularity in the state, and Michigan currently ranks 24rd in the nation for solar generation. Installing solar panels in Michigan can offset electricity costs and lead to energy bill savings. 

The average monthly electric bill in Michigan is about $120.23  for the state’s typical monthly usage of 652 kilowatt-hours (kWh) of electricity, based on November 2023 data from the Energy Information Administration (EIA). While traditional utility rates increased in most of the country, Michigan solar prices have decreased by 42% over the past decade. Increased government incentives for solar, such as the Residential Clean Energy Credit, have made solar power more affordable than ever.

Investing in solar energy for your home could lead to thousands in savings on electricity bills while reducing your home’s carbon footprint. Learn more about solar panels in Michigan, including costs, financing options, and available incentives.

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Solar panels in Michigan

The cost of solar panels differs for every homeowner. Determining the exact price of solar for your home depends on many factors, including your energy usage, system size, panel type, and permitting fees. Requesting quotes from multiple solar companies in Michigan can help you find accurate solar costs for your home. 

Evaluate your solar quotes based on the following information to determine if they align with the average state and country prices. Based on data from the Lawrence Berkeley National Laboratory and Find Energy, the average solar system cost in Michigan is higher than the national average. The price per watt for a solar array in Michigan is $4.06, while the U.S. average is $3.67.

Find Energy estimates the average home in Michigan needs a 6-kilowatt (kW) solar system to cover its energy usage, costing $24,360 before incentives. Here’s how to estimate your total cost based on the system size and price per watt.

($4.06 X 6 kW) X 1,000 = $24,360

Compare the average solar panel system size and cost in Michigan to the national averages in the following table.

The next table details the cost of solar for varying system sizes. The smaller the solar array, the lower your total cost will be. If your goal is to power your entire home with solar, you will need a larger system, which may lower the price per watt. However, if you prefer to offset your energy bills without covering all your usage, installing a smaller system can still reduce your overall electricity cost. 

The following table displays Michigan solar panel costs based on system size. A reputable solar installer can help you figure out the best system size for your goals. 

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

Factors determining Michigan solar panel costs

The total price of solar panels in Michigan is made up of hard and soft costs. Hard costs include the physical equipment, while soft costs include expenses like sales, marketing, and permitting. Solar quotes are usually all-inclusive of the following factors unless noted otherwise. 

Are solar panels in Michigan worth it?

Installing solar panels in Michigan is worth the investment to reduce your reliance on the electricity grid and lower energy bills by generating your own power. Solar incentives help offset the total costs, making solar installation more financially appealing. You can significantly shorten the payback period by taking advantage of incentives, such as the federal solar tax credit. With an average Michigan electricity bill of $120.23, a 6 kW solar system can pay for itself in bill savings after about 12 years. Considering the typical warranty period of 25 years, you can enjoy approximately 13 years of electricity bill savings, making solar panels a worthwhile investment in Michigan.

The best Michigan solar incentives and programs

Michigan does not have a state solar tax credit, but it does offer a property tax exemption and additional city solar programs. Residents can use federal and local Michigan solar programs to lower their solar costs. The federal Residential Clean Energy Credit is the most significant incentive, offering a tax credit for 30% of your solar system costs when you file your next return. Learn more about how to apply for the solar tax credit.

While there is not an extensive list of Michigan solar programs, the state’s Department of Environment published an updated Energy Storage Roadmap in 2022. It aims to encourage the transition to renewable energy through research, incentives, and regulatory policies. Based on the roadmap’s short and long-term goals, residents may expect more available grants, educational opportunities, and shifts to time-of-use energy plans.

Solar incentives in Ann Arbor

Residents of Ann Arbor can participate in the Ann Arbor Solarize community bulk-buy solar program, which can save solar buyers up to 15% on the price of a solar system. The discount is determined based on the number of participants, the chosen installer, and available incentives. For example, if you participate in Ann Arbor Solarize and purchase the average 6 kW solar system, the discount lowers the price by about $3,654 before additional incentives.  

• Solar installers are locally based and vetted to ensure valid licenses, registration, and insurance. 
• Learn from other Ann Arbor solar owners with “Thursday Night Energy Events” from the Great Lakes Renewable Energy Association.
• Contact Joe Lange, an energy analyst for Ann Arbor Solarize, for more information.

Solar incentives in Lansing

The Lansing Board of Water and Light offers homeowners, renters, and businesses a renewable power program.  Customers can subscribe to the GreenWise program to purchase renewable energy for 1.30 ¢/kW. Participants can source up to 5% of their monthly usage or blocks of 250 kWh. Joining the GreenWise program does not guarantee a lower energy bill, but it is a way for homeowners and businesses to meet sustainability goals by using clean energy sources.

• The program offers a way to support clean energy without installing solar on your home and retires Renewable Energy Credits (RECs) on your behalf. 
• All customers are eligible for enrollment.
• Enroll or unenroll by entering your information on the LBWL website or contact GreenWise over the phone (517-702-6483) or email (greenwise@lbwl.com).

Solar incentives in Detroit

There are no specific Detroit-based solar incentives available, but the city is setting goals to reduce greenhouse gas emissions. DTE Energy is a utility company in Detroit providing electricity to 2.3 million homes. DTE Energy collaborated with 21 partners across Michigan to create the CleanVision Integrated Resource plan to end coal use in 2032. The company plans to invest over $11 billion in renewables over the next 10 years and develop enough clean energy to power 4 million homes. Reaching this goal supports the state’s sustainability goals and expects to create 32,000 renewable energy jobs in Michigan. Here are more details on DTE Energy’s goal:

• Install 15,000 megawatts of renewable energy and 1,800 megawatts of storage by 2042.
• Retire the Monroe Power Plant by 2032 and provide training for other job opportunities.
• Reduce DTE Energy customers’ future costs by $2.5 billion.

Why choose solar energy in Michigan?

There are three main benefits to installing solar panels in your home: 

• Reduce energy bills: By installing solar panels on your home, you can decrease your monthly energy bill and reduce the financial impact of rising electricity rates.Michigan solar incentives andrenewable energy credits (RECs) help offset energy costs, leading to long-term savings. 
• Improve energy independence:Generating your own power reduces your reliance on the electricity grid. While many solar owners remain connected to the grid, you can worry less about rising electricity rates and impacts from power outages.
• Go green: Solar energy is a renewable resource and does not emit harmful greenhouse gasses during generation. Adopting solar power reduces your carbon footprint and contributes to a healthier environment.

Should I buy or lease my solar panels?

There are many financing options for solar panel systems in Michigan. Each option has its benefits and drawbacks. A cash purchase typically leads to the largest return on investment over time, but the upfront costs are not suitable for every budget. Explore the following table to understand the pros and cons of various ways to access solar power in Michigan. 

Michigan solar panel companies

Michigan has around 80 solar installers. SaveOnEnergy can help narrow your solar options by providing a curated customer experience. Review our resources and guides to the top solar panel companies, the best solar panels, and the best solar batteries to help you make an informed decision. 

Get started today by calling the number on your screen or filling out the solar estimator on this page to determine how much you can save. Review some of the best solar companies in Michigan in the following table. 

Solar Installer	Year founded	Financing options	Warranty terms
Blue Raven Solar (acquired by SunPower in 2021, still operating)	2014	Cash purchase or solar loan	2-year system warranty; 25-year product warranty; 10-year quality of work guarantee
	2010	Cash purchase, solar loan, PPA, or lease	Minimum 12-year product warranty, 25-year performance guarantee
	2012	Solar lease, loan, or PPA	Up to a 25-year equipment and installation warranty
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

What to search for in a solar contractor

The terms “solar contractor” and “company” are sometimes used interchangeably, but there are differences between the two. A solar contractor is a licensed professional who installs, repairs, and maintains your solar equipment. Some solar companies have in-house contractors, while others outsource contractors and are only responsible for the sales, marketing, and paperwork. 

Here’s a list of what to consider when searching for a reputable solar company to avoid solar scams: 

• Licenses and certifications. Check your state’s requirements for contractors. Examples may include a contractor’s or electrical license and a North American Board of Certified Energy Practitioners (NABCEP) certification. 
• Experience and customer service. Ask for references or search for reviews from previous customers with similar projects. You want an installer who has experience and provides clear communication throughout the process. 
• Quality products. Ensure a contractor’s products are from reputable manufacturers, such as the best solar panels and inverters. High-efficiency products support the longevity and reliability of your solar system.
• Warranty terms. Review your solar warranty terms for length and inquire about the contactors maintenance and repair services to keep your system operating at peak efficiency.

Beware of free solar panels in Michigan scam

Solar panels are an expensive investment that can cost thousands of dollars. Any offer of free solar panels in Michigan is likely a scam. Do not provide personal information to companies or salespeople that offer solar for no cost, a free Tesla Powerwall, or any other gimmicky tactic used to persuade customers.

Some companies may advertise financing options as “$0 down solar financing” to trick you into a misleading contract. Before signing any agreement or sharing personal information, research the company, and thoroughly read your contract. While free solar panels in Michigan do not exist, federal and state incentives help make solar more affordable.

Important solar installation factors to consider

Choosing solar energy can have several advantages, but there are a few things to consider before making the investment. Review the following to help determine if solar is right for you. 

• Roof condition. Solar panels are most effective on south-facing roofs with a slope between 15 and 40 degrees. Maintenance may be required before installation if your roof is old or damaged. A certified installer and solar expert should provide recommendations during your consultation.
• Location. Solar panels operate best with direct exposure to the sun for power generation. Shaded panels reduce the system’s overall efficiency, resulting in less energy production. Before installing solar, consider if any trees or other obstructions prevent sunlight from reaching your roof.
• Neighborhood rules. Michigan does not have solar rights laws, which means homeowners associations (HOA) can ban solar panels. HOAs or other neighborhood organizations (HOAs) may have restrictions on solar panels or require approval. Work with your solar installer to navigate the rules in your area.