Solar Panels Cost 5.5k-16k in Michigan | November, 2024

Solar Panels Cost $5.5k-$16k in Michigan | November, 2024

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How much do solar panels cost in Michigan in 2024?

For going solar in Michigan, the cost per watt in November, 2024 is about $3.94/W.

It will cost $3,940, on average, per 1K (or 1000 watts) your solar panels is able to produce. In Michigan, you will pay about $13,790 for a 5 kW solar system after subtracting the 30% federal income tax credit. Remember that a more extensive system could be required to satisfy your energy needs.

To the left, you can choose your county to view the average roof size and the maximum capacity of solar panel systems for houses in your area. Find below a detailed overview of the {price|costs, payback period, and 20-year average savings for a 5 kW system in your county.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Michigan: $13,790US Average: $12,523
Average Payback Period The number of years until you break even on the solar investment.
Michigan: 10 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Michigan: $8,716US Average: $16,169

Solar Potential in Michigan

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

Roof size 644sq. ft.
Capacity 9kW DC
Electricity 9.7kkWh AC per yr.

Electricity Costs in Michigan & What that Means for Your Solar Panel Pricing

Michigan residents generally use 618 kWh per month, with an average electric bill of $118.4. This figure also includes data from apartments and other smaller homes, which typically have lower energy needs.

In November 2024, the electricity rate in Michigan averages 19.15¢ per kWh.

If you’re a typical energy consumer in Michigan you will require 6 kW or larger sized system to take care of your full energy usage requirements. The expected cost is around $23,640 for 6 kW solar installation before incentives, but the federal tax credit gives you 30% back, reducing the price to $16,548.

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Average solar panel costs by system size in Michigan

Located below and to the left, you can find the price breakdown for various sizes of the solar panel systems set up in Michigan. Although a larger solar installation comes with a greater cost, it also yields greater electricity savings and more substantial income tax credits.

The solar panel calculator, positioned to the right and below, provides a detailed cost and benefit analysis based on a typical $118.4 electric bill for Michigan. Easily change the $118.4 to your regular electricity bill for more precise results.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $502 a year
Est. Price
$5,516
Savings from a 2kWthis system
  • Est. yearly production 2,620 kWh
  • Est. monthly savings $42
  • Full payback in 4 years
Environmental Impacts
  • Reduces CO2 emissions by 1.49 tons a year
  • Equivalent to planting 69 trees a year
  • Equivalent to driving 3,699 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $753 a year
Est. Price
$8,274
Savings from a 3kWthis system
  • Est. yearly production 3,930 kWh
  • Est. monthly savings $63
  • Full payback in 6 years
Environmental Impacts
  • Reduces CO2 emissions by 2.24 tons a year
  • Equivalent to planting 103 trees a year
  • Equivalent to driving 5,549 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $1,004 a year
Est. Price
$11,032
Savings from a 4kWthis system
  • Est. yearly production 5,240 kWh
  • Est. monthly savings $84
  • Full payback in 8 years
Environmental Impacts
  • Reduces CO2 emissions by 2.99 tons a year
  • Equivalent to planting 137 trees a year
  • Equivalent to driving 7,399 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,255 a year
Est. Price
$13,790
Savings from a 5kWthis system
  • Est. yearly production 6,550 kWh
  • Est. monthly savings $105
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 3.74 tons a year
  • Equivalent to planting 172 trees a year
  • Equivalent to driving 9,249 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,505 a year
Est. Price
$16,548
Savings from a 6kWthis system
  • Est. yearly production 7,860 kWh
  • Est. monthly savings $118
  • Full payback in 12 years
Environmental Impacts
  • Reduces CO2 emissions by 4.22 tons a year
  • Equivalent to planting 194 trees a year
  • Equivalent to driving 10,439 mi less a year

Michigan 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. Think you fit the criteria? Confirm your eligibility with our REAP Grant eligibility tool.

For those looking into residential solar, the 30% federal income tax credit is available to most people, making solar a practical option in various states. A multitude of state and local programs are in place to encourage the use of solar energy.

Michigan residents have access to 17 solar rebate and incentive initiatives from multiple utilities and governmental organizations.

Solar incentives in MI

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.

City of Ann Arbor - Green Power Purchasing

Value:Varies

The city of Ann Arbor is working toward a long-term goal of sourcing 100% of its energy from renewable means. Four initiatives support this goal, including community-choice power purchasing agreements, solar/wind system incentive programs, establishing community solar microgrids, and converting retired landfills into solar farms. Additional information is available from the Ann Arbor website.

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.

City of Grand Rapids - Green Building Requirements for Municipal Buildings

Value:Varies

Grand Rapids has adopted a local green building ordinance for municipal facilities. New public buildings and remodeling projects which affect at least 10,000 square feet or cost $1 million must meet or exceed LEED Silver certification or an equivalent standard. Existing buildings should draft plans to implement LEED-friendly improvements and "best practices", including procuring ENERGY STAR certified appliances and building materials when necessary. Additional information is available from the city website.

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 Michigan who intend to stay in their residence beyond the solar payback period, solar panels make an smart investment. A 5 kW solar system in Michigan could potentially save you $14,626.28 over the course of 20 years, with the break even point usually at 10 years.

The cost of not having solar panels in Michigan

Opting not to install solar panels or a separate backup energy solution results in you missing out on the savings noted earlier and makes you fully reliant on your electric utility for electricity. As we've seen in numerous recent news reports, complete reliance on your utility is not always ideal.

Michigan utilities have recorded 0.84 outages per customer per year over the past few years. Usually, outages have an average duration of 113.98 minutes. However, during critical events like planned maintenance, aging infrastructure or lightning strikes, these times can extend dramatically.

View the info below to see the number of current electricity customers without power in Michigan.

Whether featuring a backup battery or not, a solar panel system can help alleviate the stress of possible future outages.

Power Outages

Currently, 0 customers are being tracked in Michigan.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Michigan?

Your Energy Needs -Investing in larger solar panel systems costs more upfront, but the price per watt is reduced as the system size grows. Many consumers realize it's a good idea to set up a solar system that can produce enough power to fully cover their electric bill, because it helps them reduce costs.

Make & Model - Solar panels and mounting equipment are available in a range of makes and models. It's important to choose a highly rated contractor, considering the brand preferences that contractors may have. Buyers often find that using better quality equipment leads to a more satisfactory long-term experience.

Solar Panel Type - The industry standard is now monocrystalline panels, and for good reason. Although they are pricier, they provide increased energy. The majority of installers utilize panels made from this material.

Your Property - Each property and home presents unique challenges. Irregular terrain, trees, or other obstructions may complicate the installation process. These days, the majority of solar installers can assess your home with satellite images and incorporate these considerations in the first cost estimate.

Labor Rates - Different companies have varying pay scales for their employees, and these costs are ultimately borne by consumers. It is often observed that businesses with higher wages garner superior reviews for their work and customer service.

Permitting & Interconnection - Your final installation price will be impacted by the permitting and utility interconnection fees, which differ by area. Quality local installers will incorporate these figures into your preliminary estimates to avoid any surprises.

See what solar panels cost in other MI cities

See what solar panels cost in other MI counties

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Who are the best solar installers in Michigan?

YellowLite

Cleveland, OH(216) 333-1364

Services

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

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

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

Power Home Solar

Mooresville, NC(704) 870-3670

Services

  • Installation of solar arrays.
  • Reparation 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.
  • Consulting on all things solar related.

Dividend Finance

Cincinnati, OH(415) 805-7000

Services

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

Palmetto Solar

Charleston, SC(855) 339-1831

Services

  • Installation of solar arrays.
  • Reparation 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.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

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

Silver Sun Solar

Deltona, FL(407) 832-42452

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.

Harvest Solar

Jackson, MI(888) 907-6527

Services

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

Sunnova Energy

Houston, TX(866) 786-6682

Services

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

GRNE Solar

Palatine, IL(312) 859-3417

Services

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

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.
  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.
  • Installation of batteries for energy storage.

Ideal Energy

Fairfield, IA(800) 634-4454

Services

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

Altenergy

Charlottesville, VA(434) 293-3763

Services

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

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.

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.

Michigan Solar Panel Cost FAQs

  • In Michigan, the mean cost per watt for solar panels as recorded in November, 2024 is $3.94/W. A 5 kW solar panel system will cost you around $13,790 in Michigan after the federal tax credit is applied.
  • There are 17 rebates and incentives available in Michigan from a range of utility providers and government organizations. Also, nearly everyone can take advantage of the 30% federal tax credit.
  • Paying cash offers the most savings, but there are now numerous financing options for solar panels that are also cost-effective. Information about financing options is typically detailed in initial quotes provided by installers.
  • Yes, homeowners in Michigan can expect 5 kW solar panels to pay off in 10 years, with an estimated $14,626.28 in electricity savings during a 20-year span.
  • While Michigan does not currently provide payments for solar installations, all U.S. residents can utilize the 30% federal income tax credit for such projects.
  • No programs for free solar panels are currently available in Michigan, but the 30% federal income tax credit, available to nearly all US citizens, significantly lowers the cost burden of solar panel installation.
Ginalyn Gelera
Last Reviewed By: Ginalyn Gelera
Published: 2024-11-04