Solar Panels Cost 2.6k-13k in Lansing, MI | August, 2024

Solar Panels Cost $2.6k-$13k in Lansing, MI | August, 2024

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How much do solar panels cost in Lansing, MI in 2024?

Going solar averages out to $3.77/W in the month of August, 2024 in Lansing, MI.

For every 1000 watts (1 kW) your solar panel system can produce, you will need to spend, on average, $3,770 for installation. Subtracting the 30% federal tax credit, a 5 kW solar system in Lansing typically costs $13,195. To ensure your energy requirements are met, you could require more than a 5kW system.

On the left, you can choose your county to find the typical roof size and the maximum capacity for solar panels on houses in your area. Below, you can see a summary of the price, payback period and 20 year average savings for a 5 kW system installed in your county.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Lansing: $13,195US Average: $12,634
Average Payback Period The number of years until you break even on the solar investment.
Lansing: 10 yearsUS Average: 8 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Lansing: $7,128US Average: $15,248

Solar Potential in Lansing

Estimated system size and solar electricity production per median viable roof in
Lansing.

Roof size 590sq. ft.
Capacity 8.25kW DC
Electricity 8.7kkWh AC per yr.

Electricity Costs in Lansing, MI & What that Means for Your Solar Panel Pricing

For Lansing energy consumers, the average electric bill is $108.24 per month, with a usage of 557 kWh. These figures also encompass apartments and other smaller residences with lower energy demand.

In August 2024, the mean electricity rate in Lansing, MI is 19.44¢ per kWh.

The typical energy user in Lansing requires a 5 kW or higher solar setup to meet their entire power demands. The cost for aa 5 kW solar setup is approximately $18,850 initially, but with the 30% federal tax credit, the final price is reduced to $13,195.

Go Solar for less than your cell phone bill.

Average solar panel costs by system size in Lansing

Displayed below and to the left, you can find a thorough price breakdown for multiple solar panel system sizes set up in Lansing. The larger the solar array, the higher the initial expense, but also the greater electricity savings and income tax credits you'll gain.

In the calculator found to the right and below, you will find a breakdown of solar panel costs and benefits, calculated with an average $108.24 electric bill for Lansing. Adjust the $108.24 to fit your average bill payment for customized outcomes.

System Size 1kW
Roof Size Min. space required
72 ft²
Electricity Value Annual Production $256 a year
Est. Price
$2,639
Savings from a 1kWthis system
  • Est. yearly production 1,348 kWh
  • Est. monthly savings $21
  • Full payback in 2 years
Environmental Impacts
  • Reduces CO2 emissions by 0.81 tons a year
  • Equivalent to planting 37 trees a year
  • Equivalent to driving 2,002 mi less a year
System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $512 a year
Est. Price
$5,278
Savings from a 2kWthis system
  • Est. yearly production 2,695 kWh
  • Est. monthly savings $43
  • Full payback in 4 years
Environmental Impacts
  • Reduces CO2 emissions by 1.62 tons a year
  • Equivalent to planting 74 trees a year
  • Equivalent to driving 4,004 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $768 a year
Est. Price
$7,917
Savings from a 3kWthis system
  • Est. yearly production 4,043 kWh
  • Est. monthly savings $64
  • Full payback in 6 years
Environmental Impacts
  • Reduces CO2 emissions by 2.43 tons a year
  • Equivalent to planting 111 trees a year
  • Equivalent to driving 6,006 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $1,024 a year
Est. Price
$10,556
Savings from a 4kWthis system
  • Est. yearly production 5,391 kWh
  • Est. monthly savings $85
  • Full payback in 8 years
Environmental Impacts
  • Reduces CO2 emissions by 3.24 tons a year
  • Equivalent to planting 149 trees a year
  • Equivalent to driving 8,008 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,280 a year
Est. Price
$13,195
Savings from a 5kWthis system
  • Est. yearly production 6,739 kWh
  • Est. monthly savings $107
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 4.04 tons a year
  • Equivalent to planting 186 trees a year
  • Equivalent to driving 10,010 mi less a year

Lansing Solar Panel Installation Incentives & Rebates | 2024

Rural entrepreneurs and farmers might find that the REAP Grant pays for 80% to 100% of their costs when installing solar energy or wind energy systems. Not sure if you are eligible? Use our REAP Grant eligibility tool to verify.

For those considering residential solar, the 30% federal income tax credit is offered to nearly everyone, which makes solar power a smart investment in numerous parts of the country. A variety of regional and state programs are in place to support solar energy adoption.

A total of 15 solar incentive and rebate initiatives are available in Michigan from multiple utilities and government bodies.

Michigan Saves - Home Energy Loan Program

Value:Up to $30,000

Single-family homes or multifamily properties up to four units may be eligible for special financing on energy efficiency improvements through the Michigan Saves Home Energy Loan Program (HELP). Eligible projects range from energy efficient lighting to new residential solar photovoltaic systems (up to 20 kW). Available principal for a HELP loan ranges from $1,000 to $30,000. Repayment plans range from 12 - 120 months. Interest rates will vary but typically range from 4.25 - 6.99%. To apply, proof of property ownership and standard credit checks are required. Applicants should have a minimum FICO credit score of 640, and a maximum debt to income ratio of 1:2. Additional information is available from the Michigan Saves website.

Michigan Saves - Business Energy Financing

Value:Up to $1,000,000

Small businesses, nonprofits, and owners of multifamily or public-sector buildings in Michigan may be eligible for special financing on energy efficiency improvements through the Michigan Saves Business Energy Financing Program (BEFP). BEFP loans carry special interest rates and repayment terms. Eligible projects range from energy efficient lighting to new solar, wind, or geothermal energy devices. Interested property owners may consult the Michigan Saves website for additional information and to download a pre-approval checklist. The website also contains a directory of lending partners that service BEFP loans.

Interconnection Standards

Value:Varies

Distributed generation and interconnection have been standardized by the Michigan Public Service Commission since 2003. Each energy system connected to the state grid will be assigned into one of five "categories" based on rated capacity. Systems at each level must follow recognized standards such as those set by IEEE or UL. Interconnection fees and application review turnaround will depend on the system's level. Customers must carry at least $1 million of liability insurance coverage on energy systems between 1 to 5 MW by law. Though external disconnect switches are not required centrally, utilities may request that they be installed prior to interconnection. After successful connection, customers will own any renewable energy credits they generate and may sell them to the utility at their discretion.

Renewable Energy Standard

Value:Varies

Michigan requires private/municipal utilities and electric retailers/cooperatives to submit Renewable Energy Plans detailing their compliance with the state's portfolio standards. By 2021, 15% of each company's electricity should be sourced from renewable means. Eligible technologies include solar PV, wind, biomass, solid waste, and currently-operational hydroelectric systems (new hydro does not count toward the standard). Compliance is measured through a renewable energy credit system pegging electrical capacity to a dollar value. The standard law includes "bonus credit" provisions which a utility may earn for exceeding their standard quota or using an in-demand renewable technology. Additional information is available from the Michigan state website.

Refundable Payroll Tax Credit

Value:Varies

The NextEnergy Zone is located on the Wayne State University Detroit campus. The area is a Renaissance Zone, allowing renewable energy companies and institutions who locate inside to receive certain tax incentives. Incentives specific to the NextEnergy Zone include indirect payroll tax credits for a company's employees, provided they work directly with renewable energy manufacturing or R&D. Credit amount is equal to an employee's salary times their state income tax rate as a percentage. Should credit exceed liability, a refund will be issued for the remainder of the credit amount. Additional information is available through the NextEnergy Authority website.

Low-Income and Energy Efficiency Fund (LIEEF)

Value:Varies

The Low Income and Energy Efficiency Fund (LIEEF) is a public benefits fund in Michigan. LIEEF is supported by the state's three largest power companies through monthly consumer surcharges. Rather than supporting incentive or rebate programs, LIEEF funding supports request-for-proposal programs and grant initiatives to support low-income Michiganders in adopting on-site renewable energy or making other energy efficiency improvements. Additional information is available from the Michigan Public Service Commission, which administers the fund.

Michigan Accelerating Technologies (MATch) Energy Grant

Value:Varies

Michigan Accelerating Technology (MAT) is a grant program managed by the state's NextEnergy authority. Through MAT, businesses and educational institutions that receive federal grants supporting energy sustainability or alternative transportation research may be eligible to have their awards matched at the state level. Grant recipients may be eligible to contract some services to the NextEnergy Authority (for example, statistical analysis and supply chain research.) Additional information is available from the NextEnergy website.

Energy Efficiency in State Buildings

Value:Varies

Michigan first established a mandatory renewable portfolio standard in 2008. The standard required at least 25% of the state's energy to be sourced from renewable means by 2015. The standard was part of a larger restructuring law which also established green construction standards for new state buildings, energy efficiency "best practices" for existing buildings, and a new agency to regulate wind power in the state. Additional information is available from the federal Energy Codes database.

Net Metering

Value:Varies

Private/municipal utilities and electric cooperatives in Michigan are required to offer "inflow-outflow" tariff program participation to new renewable energy and distributed generation customers. This program serves as the successor to traditional net metering, which is expected to be phased out in full by 2028. Under an inflow-outflow contract, customers are technically billed for all electricity they generate, including excess generation (EG) sent to the grid. Rather than paying for all generated energy, however, they will only owe the cost of their "nettable energy" in that cycle. Nettable energy is equal to total power generated at the standard billed cost minus EG at a different "credit rate." As with net metering, should generation exceed consumption, any remaining bill credits will be applied to subsequent cycles. Additional information is available from the Michigan state website.

City of Lansing - Green Power Purchasing Policy

Value:Varies

Lansing has established its own renewable portfolio standard goals. The city was required to source 20% of its energy from renewable means by 2020 and 50% by 2030. Additional measures set goals for reducing energy use by 10% in city buildings. Additional information is available from the Lansing municipal website.

Alternative-Energy Personal Property Tax Exemption

Value:Varies

The NextEnergy Zone is located on the Wayne State University Detroit campus. The area is a Renaissance Zone, allowing renewable energy companies and institutions who locate inside to receive certain tax incentives. Incentives specific to the NextEnergy Zone include property tax exemptions on renewable energy systems, alternative vehicles, and corporate belongings. Eligible property must be completely new to Michigan; real estate does not qualify for exemptions. Additional information is available through the NextEnergy Authority website.

Solar Contractor Licensing

Value:Varies

Special licenses are available for installation/repair contractors of solar thermal systems in Michigan. Certified HVAC contractors do not need a separate license to install solar devices. To obtain a solar thermal license, applicants should have three years of experience as a journeyman and pass an exam. A trade school diploma counts as one year of experience. There is currently no special licensure for solar photovoltaic contractors. Solar contractors of any specialty may need to subcontract certain plumbing or electrical work. Additional information is available through the Interstate Renewable Energy Council.

Lean and Green Michigan PACE

Value:Varies

Lean and Green Michigan is a statewide property-assessed clean energy (PACE) program that offers special financing for energy efficiency improvements and equipment. Multi-family residential and commercial property owners alike may consult with PACE representatives to design a competitive loan with a private lending partner. Effectively, funding comes from the government; repayment will therefore take the form of a tax lien senior to the property's mortgage. Single-family homes are ineligible for PACE funding due to regulatory concerns from the FHFA. Fannie Mae and Freddie Mac cannot take ownership of a mortgage with an active PACE lien. Interested property owners should visit the Lean and Green Michigan website.

Renewable Energy Program Grants

Value:Varies

Funding for renewable energy grants and initiatives may be provided by the Michigan Energy Office. Grants support educational programs for local governments and businesses on renewable energy adoption. Communities may obtain personalized feasibility studies or examine prototype equipment. Additional information is available from the Michigan Agency for Energy website.

Renewable Energy Renaissance Zones

Value:Varies

"Renaissance Zones" are clearly designated locations in Michigan in which renewable energy developers may qualify for special tax incentives. Qualifying facilities will earn a 15-year property tax abatement and are exempt from state corporate, education, and income taxes, along with some local taxes. Eligible construction includes new solar, wind, or biomass facilities. Capital construction for institutions researching or manufacturing renewable energy products may also qualify for exemptions. Applications for Renaissance Zone incentives will consider potential economic impact. Additional information is available from the Michigan Economic Development Corporation website.

Are solar panels worth it in Michigan?

For homeowners in Lansing intending to stay beyond the payback period of their solar system, solar panels are the best choice. Installing a 5 kW solar system in Lansing, MI will, on average, save you $12,782.6 over 20 years, and you can expect to break even in about 10 years.

The cost of not having solar panels in Lansing, MI

If you don't have solar panels or an alternate backup power source, you forgo the previously mentioned savings and your household is completely dependent on your electric utility for electricity. As shown by numerous recent news reports, total reliance on your utility isn't always the best situation.

Residents in Lansing have seen an average of 1.04 utility outages per year lately. Outages generally last for an average of 182.99 minutes. During major occurrences like grid management errors, tornadoes or wildlife damage, these times can extend significantly.

A solar energy system, with or without a backup battery or not, can relieve the pressure of future power outages you may face.

Go Solar for less than your cell phone bill.

What impacts the cost of solar panels in Lansing, MI?

Your Energy Needs - When opting for larger solar panel systems, the overall expense is greater; however, the cost per watt decreases with an increase in system size. Homeowners often find that setting up a solar system to replace their electric bill is a good move, resulting in the most savings.

Make & Model - Solar panels and mounting equipment are offered in a wide variety of makes and models. Because the installer you choose might have particular brand preferences, selecting a recommended contractor is especially important. Opting for higher quality equipment generally ensures a more favorable long-term experience for the buyer.

Solar Panel Type - For valid reasons, monocrystalline panels have emerged as the standard in the industry. They have a higher price, but they produce more energy. Many solar panel installers choose this type of material.

Your Property - Every home and property differs in its own way. Challenges like uneven land, trees, or other challenges can increase the difficulty of installing solar panels. These days, solar installers commonly utilize satellite images to assess your home and factor in these considerations into the first cost estimate.

Labor Rates - The varied employee wages paid by companies lead to costs that consumers ultimately paying . Higher wages generally correlate with better reviews for businesses' services and customer service.

Permitting & Interconnection - Installation costs will be influenced by varying local permitting and utility interconnection fees, depending on the region. That said, experienced local installers will be able to incorporate these numbers into your initial quotes so there are no surprises.

See what solar panels cost in other MI cities

Go Solar for less than your cell phone bill.

Who are the best solar installers in Lansing?

YellowLite

Cleveland, OH(877) 743-8757

Services

  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Reparation of solar arrays.
  • Installation of solar arrays.

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.
  • Reparation of solar arrays.

Power Home Solar

Mooresville, NC(704) 870-3670

Services

  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.
  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

Dividend Finance

San Francisco, CA(415) 805-7000

Services

  • Installation of batteries for energy storage.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Palmetto Solar

Charleston, SC(855) 339-1831

Services

  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Silver Sun Solar

Deltona, FL(340) 227-7785

Services

  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

Harvest Solar

Jackson, MI(888) 907-6527

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Consulting on all things solar related.

Sunnova Energy

Houston, TX(866) 786-6682

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

GRNE Solar

Palatine, IL(312) 859-3417

Services

  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Ideal Energy

Fairfield, IA(800) 634-4454

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

Altenergy

Charlottesville, VA(434) 293-3763

Services

  • Consulting on all things solar related.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Consulting on all things solar related.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

PowerHome Solar

Mooresville, NC(704) 870-3670

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Cinci Home Solar

Cincinnati, OH(513) 616-6044

Services

  • Installation of solar arrays.
  • Auditing of energy requirements for independent energy generation.
  • Consulting on all things solar related.

Lansing, MI Solar Panel Cost FAQs

  • During August, 2024, the average price for solar panel installations in Lansing, MI is $3.77/W. A 5 kW solar panel system will cost you around $13,195 in Lansing, MI after the federal tax credit is applied.

  • In Michigan, you have access to 15 rebates and incentives provided by numerous utilities and government organizations. Moreover, nearly everyone is eligible for the 30% federal income tax credit.

  • While cash payments offer the most savings, there are now many financing options for solar panels that are also financially beneficial. Financing options from installers will often be detailed in your initial quotes.

  • Yes, solar panels systems of 5 kW in Lansing, MI typically have a payback period of 10years, with expected savings on electricity costs of $12,782.6 over 20 years.
King Manalo
Last Reviewed By: King Manalo
Published: 2024-08-15