Solar Energy in Michigan
There is some room for improvement when it comes to solar power in Michigan. There are no state-based or utility-based incentives for installing solar. Michigan does have a renewable portfolio standard, but it isn’t as ambitious as other states.
However, The Great Lakes State does have a net metering policy, so excess kilowatt-hours of energy your solar system creates are credited to your monthly utility bill.
Net metering, combined with the 26% federal tax credit, makes going solar an excellent choice for Michigan homeowners.
Michigan Solar Power Facts
$2.62 watt
Average cost: 5kW solar power system.
Average Payback time
On average it takes 9 Years 4 Months to pay back the system.
Average Lifetime Savings
On average, solar power can save you $36,384 over your lifetime.
6¢ kWh
This is the levelized cost of solar energy.
25¢ kWh
This is the levelized cost of energy without solar panels.
9,062 kWh
Annual power production of home solar panels.
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How much do solar panels cost in Michigan?
Before 26% solar tax credit
Before 26% solar tax credit
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Michigan?
The advantage of installing solar panels in Michigan is the state-mandated net metering requirement. Utilities must offer credits to their customers for excess energy generated by their solar systems. These credits are equal to the avoided cost rate of electricity.
The disadvantage of installing solar panels in Michigan is that it is very little in the way of state and utility-based incentives. Also, Michigan does not receive as much sunshine as other states, so a solar system here will produce less than a system in a sunnier state, like Arizona. The state does not offer any property or sales tax exemptions either.