Solar Panels Cost 5.2k-15k in Traverse City, MI | October, 2024

Solar Panels Cost $5.2k-$15k in Traverse City, MI | October, 2024

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How much do solar panels cost in Traverse City, MI in 2024?

In Traverse City, MI in October, 2024, the current price per watt for solar panel installations is estimated at $3.76/W

In accordance with this rate, expect to pony up $3,760, on average, for every 1000 watts (or 1 kW) of solar energy your solar system can produce. In Traverse City, you can expect to spend approximately $13,160 for a 5 kW solar installation once the 30% federal income tax credit is factored in. It should be noted that a larger system could be necessary to adequately cover your energy requirements.

Choose your county from the menu on the left to find out the typical roof size and maximum solar panel capacity for homes in your area. Shown below is a breakdown of the price, 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.
Traverse City: $13,160US Average: $12,562
Average Payback Period The number of years until you break even on the solar investment.
Traverse City: 11 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Traverse City: $4,444US Average: $15,784

Solar Potential in Traverse City

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

Roof size 751sq. ft.
Capacity 10.5kW DC
Electricity 11.1kkWh AC per yr.

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

In Traverse City, energy consumers usually see an average electric bill of $96.85 each month, with an average consumption of 616 kWh. Flats and other smaller residences with reduced energy requirements are included in this data.

The average rate for electricity in Traverse City, MI during October, 2024 is 15.73¢ per kWh.

Typical citizens in Traverse City may need a solar panel system of 6 kW or larger to cover their entire electricity consumption requirements. Before any incentives, a 6 kWsolar system is priced at approximately $22,560, after the 30% federal tax credit, the final cost is $15,792.

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Average solar panel costs by system size in Traverse City

Shown on the left and below is the cost analysis for multiple sizes of solar panel systems installed in Traverse City. The initial cost for more extensive solar systems is higher, but they also provide more significant electricity savings and larger income tax credits.

The solar panel cost calculator below and to the right details costs and benefits, using an average $96.85 electric bill in Traverse City For results that are more specific to you, modify the $96.85 to reflect your typical electricity bill.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $437 a year
Est. Price
$5,264
Savings from a 2kWthis system
  • Est. yearly production 2,734 kWh
  • Est. monthly savings $36
  • Full payback in 5 years
Environmental Impacts
  • Reduces CO2 emissions by 1.55 tons a year
  • Equivalent to planting 71 trees a year
  • Equivalent to driving 3,845 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $656 a year
Est. Price
$7,896
Savings from a 3kWthis system
  • Est. yearly production 4,101 kWh
  • Est. monthly savings $55
  • Full payback in 7 years
Environmental Impacts
  • Reduces CO2 emissions by 2.33 tons a year
  • Equivalent to planting 107 trees a year
  • Equivalent to driving 5,768 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $875 a year
Est. Price
$10,528
Savings from a 4kWthis system
  • Est. yearly production 5,468 kWh
  • Est. monthly savings $73
  • Full payback in 9 years
Environmental Impacts
  • Reduces CO2 emissions by 3.11 tons a year
  • Equivalent to planting 143 trees a year
  • Equivalent to driving 7,690 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,094 a year
Est. Price
$13,160
Savings from a 5kWthis system
  • Est. yearly production 6,835 kWh
  • Est. monthly savings $91
  • Full payback in 11 years
Environmental Impacts
  • Reduces CO2 emissions by 3.88 tons a year
  • Equivalent to planting 178 trees a year
  • Equivalent to driving 9,613 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,312 a year
Est. Price
$15,792
Savings from a 6kWthis system
  • Est. yearly production 8,202 kWh
  • Est. monthly savings $97
  • Full payback in 14 years
Environmental Impacts
  • Reduces CO2 emissions by 4.13 tons a year
  • Equivalent to planting 190 trees a year
  • Equivalent to driving 10,232 mi less a year

Traverse City Solar Panel Installation Incentives & Rebates | 2024

If you own a plot or small business in a rural area, the REAP Grant might cover between 80% and 100% of your photovoltaic or wind turbine installation costs. Wondering about your eligibility? Use our REAP Grant eligibility tool to check.

Adding residential solar panels comes with a 30% federal tax credit, available to most homeowners, making it a good option for many areas throughout the United States. Apart from the federal incentives, state and local programs also work to boost solar energy uptake.

A total of 14 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.

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 those in Traverse City looking to stay in their homes past the payback period of their solar system, solar panels make excellent sense. With a 5 kW solar system in Traverse City, MI, the average savings over a 20 period is $10,084, with break even generally occurring at 11 years.

The cost of not having solar panels in Traverse City, MI

Besides missing out on the savings outlined above, not installing solar panels or an alternative backup energy source results in total reliance on your electric utility for electricity. Recent news examples have indicated that complete dependence on your utility provider isn't always ideal.

Every year, customers in Traverse City face approximately 0.85 outages each year. Outages typically last for an average of 121.92 minutes. Major occurrences like hurricanes, wildlife damage, or grid management errors can lead to a significant rise in these time frames.

Whether it comes with a backup battery or not, a solar panel system could reduce the strain of any future power interruptions you may encounter.

Power Outages

Currently, 0 customers are being tracked in Grand Traverse County.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Traverse City, MI?

Your Energy Needs - Larger solar panel systems require more upfront investment, but the cost per watt declines as the size of the system grows. Installing a solar system that makes sufficient electricity to eliminate their electric bill is beneficial to most individuals, ensuring savings.

Make & Model - Solar panels and mounting equipment, like many other products, are offered in a variety of makes and models. The brand preferences of your selected installer can make it crucial to choose a highly rated company. The selection of better equipment can greatly better the long-term experience for buyers.

Solar Panel Type - Monocrystalline panels have become the industry standard, and it's easy to see why. Even with a higher cost, this technology generate more energy. Most installers opt for panels crafted using this material.

Your Property - Each property and home has its own characteristics. Factors such as uneven land, trees, or other obstacles can make the installation more challenging. These days, solar installers can utilize satellite images to evaluate your home and include these considerations into the preliminary cost estimate.

Labor Rates - Companies remunerate their employees in varying amounts, and these costs are transferred to consumers. It is frequently observed that businesses with higher wages receive superior reviews for their work and customer service.

Permitting & Interconnection - The cost of installation will be influenced by changing local permitting and utility interconnection fees. That said, quality local installers will be able to build these numbers into your initial quotes so there are no surprises.

See what solar panels cost in other MI cities

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Who are the best solar installers in Traverse City?

YellowLite

Cleveland, OH(877) 743-8757

Services

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

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

  • 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.
  • Installation of solar arrays.

Power Home Solar

Mooresville, NC(704) 870-3670

Services

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

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

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

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Monitoring of independent energy generation.
  • 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.

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.

Traverse City, MI Solar Panel Cost FAQs

  • During October, 2024, the average price for solar panel installations in Traverse City, MI is $3.76/W. The installation of a 5 kW solar panel system in Traverse City, MI will cost about $13,160 after federal tax credits.

  • At present, there are 14 rebates and incentives available to Michigan residents from various utility and government programs. Additionally, the vast majority qualify for the 30% federal tax credit.

  • Opting for cash payments results in the highest savings, but there are now multiple financing options for solar panels that are beneficial. Your initial quotes will often contain information about financing options provided by installers.

  • Yes, the average 5 kW solar panel payback time in Traverse City, MI is 11 years, with expected savings of $10,084 on electricity over 20 years.
King Manalo
Last Reviewed By: King Manalo
Published: 2024-10-01