Home Solar in Michigan:

Local installers, tax credits, and rebates.

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Michigan residents who experienced power outages in a span of ten years¹


Prices have fallen 54% over the last 10 years²


Average yearly savings for homeowner's who switch to solar³

Michigan Solar

Michigan, a state known for its diverse landscapes and changing seasons, has been making significant strides in adopting solar energy as a reliable and sustainable power source. Despite its northern latitude, Michigan has been capitalizing on its solar potential, driven by technological advancements, supportive policies, and the desire to reduce carbon emissions.

Michigan's commitment to renewable energy is evident in its Renewable Portfolio Standard (RPS), which requires utilities to generate a portion of their electricity from renewable sources, including solar. This policy not only encourages the growth of the solar industry but also contributes to the state's efforts to reduce greenhouse gas emissions and combat climate change.

If you're a Michigan resident considering solar adoption, it's important to familiarize yourself with key solar programs.

Let’s learn about some of those incentives, the utility policies associated with interconnection and setup, and special solar financing plans for solar panels and battery systems in Michigan.

Incentive Programs, Tax Credits, and

Solar Rebates in Michigan

Federal ITC - 30%Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system.
Instant Rebate from EnergyPalEnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day!
Ameren Solar RebateUpfront Rebate of $0.25/W. Max Incentive of $6,250. Requires TSRF 85%. Paid to installer.
Evergy Metro Solar RebateRebate to Homeowner. Total budget is $8MM, 7.7MM as of 10/17/2022 which means about ~1.199 mW of funding available. Paid to Homeowner.
Liberty Utilities Solar Rebate$0.25 per watt for systems operational between July 1, 2019, and December 31, 2023. Note, rebates for systems will expire on December 31, 2023. The system must be situated in a location where a minimum of eighty-five percent (85%) of the solar resource is available to the system. Paid to installer.
Residential Loan ProgramResidential Loan Programs in Michigan offer a valuable solution for homeowners seeking financing between $1,000 and $50,000 for their home energy enhancement projects. These loans can span up to ten years, providing flexible terms for homeowners.
Residential Property Tax ExemptionIn Michigan, the Residential Property Tax Exemption specifically addresses the concern of increased property taxes following the installation of a solar system. This exemption effectively mitigates the potential financial strain by preventing additional tax burdens, allowing homeowners to upgrade their residences without worrying about escalating taxes.

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Other Solar Energy Incentives

The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.

If you purchased a $20,000 system, your savings from the federal tax credit would look like this:

$20,000 X 0.30 = $6,000 savings

Home Solar Financing in Michigan

There are three pathways to powering your home with solar energy in Michigan: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Michigan. Here's a comparison:

Solar Purchase

  • Optimal Return-On-Investment
  • Potential Reduction of Bills to near $0
  • Enhances Property Value

Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Michigan can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.

Solar Loan

  • No Initial Expenses
  • Ownership of the System
  • Appreciates Property Value

Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us

Solar Lease

  • No Initial Investment Required
  • Complete Maintenance Coverage
  • Lower Monthly Payments
  • Guaranteed Rates

Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.

Talk to your EnergyPal Advisor about financing solar options in Michigan. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.

Find The Best Deals On Home Solar In Michigan

Step 1 of 4

Do you own or rent your property?

Frequently Asked Questions

Is it worth going solar in Michigan?

In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Michigan pays around 18.56¢ cents per Kilowatthour.

What is the payback period for solar panels in Michigan?

Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Michigan averages 8.1 years.

How much are solar panels in Michigan?

As of August 2023, the average solar panel cost in Michigan is $3.78/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Michigan is $15,876 with 30% tax credit applied.

What incentives are available for solar in Michigan?

Solar installations in Michigan are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Michigan incentives, tax credits & rebates you qualify for.




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