Michigan Solar Panels: Pricing and Incentives

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Solar power in Michigan

Michigan was a relatively late adopter of solar power. It didn’t start implementing solar-friendly policies until 2008 — much later than many other states. Nevertheless, it has seen a boom in solar power over the past several years that has made it competitive when it comes to solar energy generation. 

Are you wondering whether solar panels are right for you? Keep reading to learn more about Michigan solar power, the benefits of installing solar panels on your home, and whether solar is right for you.

Michigan solar panel cost

The cost of solar panels depends on many factors, including your location, the size and configuration of your system, local labor and permitting costs, and more. Every residential solar system is different, but the average system costs between $3 and $5 per watt, with a 5-kW system costing between $15,000 and $25,000 before taxes, rebates, and other financial incentives.

The good news is that while solar panels are a big investment, they can also save you money in the long term. Between the financial incentives available and the energy savings you’ll see, the average return on investment for solar panels is just 6-9 years.

Interested in learning more about solar in your area? Fill out the form below to get started.

Michigan solar incentives or rebates

There’s no doubt that solar panels are expensive. Luckily, the federal government and many state and local governments have created financial incentives to reduce the cost burden.

The federal government offers a solar tax credit for homeowners who purchase solar panels for their primary, and occasionally secondary, homes. This tax credit allows you to claim a credit of 26% of the cost of your solar panels on your annual taxes. In 2023, the credit amount will be reduced to 22%, and the tax credit will disappear in 2024 unless extended.

The state of Michigan also has incentives in place for homeowners who wish to purchase solar panels. The state’s Michigan Saves Home Energy Loan Program allows you to upgrade your home’s energy efficiency with loans up to $30,000 and rates starting at 4.99%.

Why choose Michigan solar power?

There are plenty of benefits to installing solar panels on your home. First, solar panels give you the opportunity to lower your energy costs. 

Lower energy costs

When you have solar panels on your home, they generate electricity to help you power each part of your home that requires electricity, be it your refrigerator or bedroom light. And during the time that solar power is powering your home, you aren’t paying to use electricity from the traditional energy grid. Depending on where you live and the amount of solar power you produce, you could save thousands of dollars a year.

Establish energy independence

Another benefit of installing solar panels is that you can move towards energy independence. When you’re energy independent, you aren’t reliant on the traditional energy grid to power your home, which can help you in several ways. 

First, energy independence means you aren’t vulnerable to electricity price hikes. When you power your home with solar, you can worry less about annual or sudden electricity rate increases. The other benefit of energy independence is that you don’t have to worry about power outages caused by a storm, downed power lines, or other causes, if you have a backup solar battery as part of your system.

Go green

The final key benefit of choosing solar power is that you can reduce your home’s carbon footprint. Traditional electricity generation emits greenhouse gasses into the air, which contributes to climate change and pollutes the air and water. But solar power is a form of green energy, meaning you can worry less about the negative environmental impact of energy.

Want to learn more about solar energy

Here at SaveOnEnergy, we’re your guide to everything solar energy, from checking your availability and discussing your home’s needs to getting you customized options to go solar with ease. Want to talk with a human? Call our dedicated solar advisors to discuss your solar energy options. Give us a call at 866-420-7250.

Michigan solar panel incentives or rebates

While initial installation can be costly, there are rebates and incentives to help offset that upfront cost. When it comes to Michigan solar incentives, there are a few different components to consider.

There are several such incentives and rebates at the federal level. A 26 percent federal solar tax credit is available for homeowners who install solar panels on their primary or secondary residence in 2021. As of now, this tax credit is set to expire in 2024 unless Congress renews it. While this has happened before, there is no guarantee that it will be renewed. With that in mind, homeowners interested in solar should consider purchasing a system sooner rather than later to guarantee that they benefit from the tax credit.

The state of Michigan also offers some incentives and rebates. The state offers low-interest loans to purchase and install residential solar systems. Homeowners who generate more electricity than they use can also sell some back to the local grid through a program called net-metering.

Should I buy or lease my solar panels?

When you install solar panels on your home, you’ll have the option to either buy or lease your panels. Both options come with benefits, but you’ll ultimately save more when you buy your solar panels, either with cash or a loan. 

Outright purchasing your solary system allows you to save more in the long run because once your panels are paid off, you have pure savings. But when you lease, you’ll always have a monthly payment. On average, solar panels increase your home’s resale value by $15,000, making them a great home improvement option.

Leasing solar panels can be a good option for many families looking to lessen their environmental impact, but it will not save you as much money over the life of the systme. It can open access to solar for more families who may not otherwise be able to purchase solar panels due to cost constraints, renting their home, and more. Keep in mind, however, that leasing your solar panels doesn’t give you access to the same tax credits and other incentives.

Finally, shared solar programs have increased solar power availability to even more people. Community solar projects and Power Purchase Agreements (PPAs) allow families to access solar power for their homes without paying the large upfront cost of solar panels or even having solar panels on their homes.

Michigan solar power installers

As solar production and installations grow across the state, more installers are becoming available. SaveOnEnergy can help you narrow down your solar options by providing the resources you need to make an informed decision. Give us a call to find a solar installer in your area. 

Are you ready to get started with solar power? Here’s how we can help:

1. Enter your information in the form below
2. SaveOnEnergy will connect you with a solar panel installer in your area
3. The solar installer will guide you through the entire process to design a custom solar panel system for your home. 

The history of solar power in Michigan

Residential solar power in Michigan dates back to 2008 when the state passed several policies to help incentivize the investment in solar panels. The state passed its Renewable Portfolio Standard and its net metering program, which have been successful in boosting solar generation in the state.

Today, Michigan ranks 26th in the nation for solar energy generation. Roughly 0.52% of the state’s electricity comes from solar power, which is enough to power more than 100,000 homes. Over the past several years, there has been an increase in residential solar installations. Not only that, but solar has become significantly more affordable over the past five years, which is likely to result in even more solar installations in the future.

Not only have residential installations increased in Michigan, but many major companies have also embraced solar power. Companies like Ford, General Motors, and IKEA have gone solar in Michigan.

Important solar installation factors to consider

There are plenty of benefits to installing solar panels on your home, but there are a few things to consider before you make such as a large financial investment. Here are a few things to keep consider:

• The state, age, and angle of your home’s roof. According to the Department of Energy, solar panels are most effective on south-facing roofs with a slope between 15 and 40 degrees. Additionally, it’s best to install them on roofs in good shape that won’t need to be replaced in the near future. Tackle any roof repairs before installing solar. 
• How much sun your home gets. Solar panels can only save you money if they capture sunlight to turn into electricity. Not only is it important to consider the weather patterns of your area, but it’s also important to consider if any trees or other obstructions prevent sunlight from reaching your home regularly.
• Your neighborhood. Some homeowners associations may have restrictions around the use of solar panels or may require that you get approval before installing them on your home, especially on the street view of your roof.