Find out if solar panels are right for your home in Michigan.
As of the second quarter in 2023, The Great Lakes State is able to power 223,888 homes just with solar alone. This is possible due to a number of large projects as well as policy changes with the help of the Solar Energy Industries Association (SEIA).
Large projects like the Assembly Solar in Lennon and the Demille Solar Farm in Lapeer have popped up only recently. Together, contributing to a total solar capacity of 1,308 MW as of Q2 2023.
The SEIA is actively involved in Michigan to help foster solar growth. They monitor new initiatives like the MI Power Grid and collaborate with local organizations to foster community solar and other solar developments.
The average price for a home solar panel system in Michigan is $22,680 or about $3.78 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Michigan | $19,020 | $31,700 | $9,510 | $3.17 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $15,850 | $8,785 |
| 6 kW | $19,020 | $10,542 |
| 7 kW | $22,190 | $12,299 |
| 8 kW | $25,360 | $14,056 |
| 10 kW | $31,700 | $17,570 |
Regrettably, solar energy isn't without its flaws. Our aim is to help you make the most informed choice for your situation. That's why we've gathered a list of advantages and disadvantages you might consider when analyzing a solar installation in your home state. We recommend considering all aspects.
Your perspective is important, and what you perceive as a downside might just overshadow the numerous benefits for you. We're here to lay out the pros and cons, empowering you to form your own judgment.
We are on the fence about Michigan. While there are some solar incentives, whether solar makes sense for you more highly depends on your situation more than other states. We’ll explain how solar may be an option for some, but may not be available for all.
In a state like Michigan, solar viability will more heavily depend on other factors. If your roof requires additional support to hold the solar system, the solar system could easily not make financial sense due to those construction costs. Also ensuring that your home receives adequate sunshine, free of shade, and ideally faces south.
Some can still expect a payback of 10 years on their solar system. If other costs are required or if you don’t have adequate sunshine then that can easily increase. Solar has a life expectancy of 20 to 25 years on average for solar panels, making a 10 year payback great if everything else aligns.
While it could make more sense for some, Michigan is a state where other factors could strongly sway the needle in one direction or the other. However, if you prioritize energy independence and renewable energy, other factors outside the financial could sway the decision.
Because of this, we strongly recommend talking with a local solar installer to get an estimate.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Michigan. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
In addition to the 30% Federal Solar Tax Credit, you may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. Some incentives are statewide and others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.
This table shows the available incentives in Michigan. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Energy Efficiency Grants | MI | Financial Incentive | Grant Program |
| Nonrefundable Business Activity Tax Credit | MI | Financial Incentive | Industry Recruitment/Support |
| Wind Turbine & Solar PV Incentive Program | MI | Financial Incentive | Rebate Program |
| Community Energy Project Grants | MI | Financial Incentive | Grant Program |
| Photovoltaic Demonstration Projects Solicitation | MI | Financial Incentive | Grant Program |
| Biomass Workshop and Event Grants | MI | Financial Incentive | Grant Program |
| Renewable Energy Program Grants | MI | Financial Incentive | Grant Program |
| Industrial Facilities Tax Exemption | MI | Financial Incentive | Property Tax Incentive |
| Large-Scale Photovoltaic Demonstration Project Grants | MI | Financial Incentive | Grant Program |
| Interconnection Standards | MI | Regulatory Policy | Interconnection |
Michigan Saves: This is a non-profit organization that offers financing for solar installations, making it more affordable for residents and businesses in Michigan.
Michigan Solar Companies
There are hundreds of solar companies in Michigan. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Yup! You read that right, floating solar panels. Just north of Grand Rapids, Michigan, there are plans to be one of the first municipalities in the state to develop a floating solar farm by 2024. Plainfield Township is partnering with White Pine Renewables, a San Francisco-based solar developer, for this project.
While this isn’t a new idea, there’s a reason you don’t see that many floating panels in the ocean. They have many challenges. Weather conditions like storms and high winds can damage the panels, while fluctuating water levels can affect their stability. Maintenance is another concern, as accessing the panels for cleaning or repairs is more complicated than with land-based systems. Accumulation of algae and other aquatic life, can reduce the panels' efficiency. Lastly, the panels may require longer cables to connect to the grid, which can lead to energy loss.
However, Michigan is doing things differently. The solar panels will be installed on a surface water treatment pond, which was formed from an old gravel pit adjacent to the local water treatment plant. Meaning no waves, easier to maintain, and shorter cables.
The initial idea was to go for a ground-mounted solar project, but after a site assessment, it was found that there wasn't enough space near the water treatment facility for such an installation. Therefore, the floating solar option was chosen, despite being more expensive than ground-mounted projects.
The goal of this solar farm is not to produce excess power but to generate an adequate amount to significantly reduce the energy load of the water treatment plant. A power purchase agreement for 800 kilowatts has been proposed, meaning the township will have zero upfront costs but will continue to buy power from the floating farm for roughly 30 years. The project is expected to save the township about $100,000 in the first five years and over $2 million over the 35-year lifetime of the solar panels. The earliest construction could start is in 2024.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Michigan decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Michigan can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Michigan is $22,680 for a 6kW system or about or about $3.78 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.
Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
Michigan, getting a solar permit is pretty straightforward but can vary depending on your local jurisdiction.
Typically, you'll need to submit a permit application to your local building department, which usually includes site plans and system specs. Some cities have streamlined this process to encourage solar adoption. It's always a good idea to consult your local building department for the nitty-gritty details like required documentation and fees.
If you're working with a solar installation company, they often handle the permitting process for you.
