Solar Panels in Michigan2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Michigan.
$18,000–$30,000
Avg system cost
$12,600–$21,000
After 30% ITC
4.2 hrs/day
Peak sun hours
$0.172/kWh
Avg rate
Is Solar Worth It in Michigan?
Based on a home with a $150/month electric bill in Michigan
Est. system size
6.3 kW
Gross cost
$18,213
Federal tax credit
−$5,464
Net cost
$12,749
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 7.1 years — then 12 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Michigan Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Michigan State
State Incentive
Property tax exemption + Consumers Energy & DTE rebates
Additional Michigan Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: Solar system value exempt from property taxes
Sales Tax Exemption: Sales tax applies to solar equipment purchase
Solar Installation Cost in Michigan by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $1,212,910/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,698,073/yr |
| 9 kW | $22,091,040 | $15,463,728 | $2,183,237/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,910,983/yr |
* Costs based on $2.90/W national average. Michigan installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in Michigan
How much do solar panels cost in Michigan?
Solar installation in Michigan typically costs $18,000–$30,000 before incentives. After the 30% federal tax credit, most homeowners pay $12,600–$21,000 net.
Is solar worth it in Michigan?
Yes — Michigan homeowners benefit from 4.2 average peak sun hours per day and relatively high electricity rates ($0.172/kWh). The 30% federal ITC combined with property tax exemption + consumers energy & dte rebates make the financial case strong for most homeowners.
What state incentives are available for solar in Michigan?
Property tax exemption + Consumers Energy & DTE rebates. On top of state incentives, all Michigan homeowners qualify for the federal 30% Investment Tax Credit (ITC). Your solar system is also exempt from property tax assessment.
How long is the payback period for solar in Michigan?
Based on Michigan's average electricity rate of $0.172/kWh and 4.2 peak sun hours, most homeowners see payback in 7.1–10 years. Systems then produce free electricity for 15–20+ more years.
Does Michigan have net metering?
Yes — Michigan has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.