Solar Panels in Michigan: Cost and Savings

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You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

According to FindEnergy, the average residential solar system costs $4.14 per watt, with a total price tag in Michigan of $24,815, for the average 6 kilowatt (kW) system. Tax credits and other financial incentives can decrease your upfront costs.

As you shop, remember that several factors can have a significant effect on the total cost of your solar system. The cost of solar panels in Michigan fluctuates based on the size and configuration of your system, the components included, and any labor and permitting costs.

The average payback period on the upfront cost is 12 years in the U.S and 15 years in Michigan. Over a 20-year period, the average Michigan consumer will save $7,500 in electric bills, a change that could make a big difference in your daily life.

Solar panel setup

The price you pay for a home solar panel system includes the costs of several different components. Solar panels work in a simple process. The most common parts of a solar panel system include: 

• Solar panels: Solar panels capture sunlight through solar cells to use as energy in your home. There are three panel choices: monocrystalline, polycrystalline, or thin-film panels. Solar panels also come in a variety of sizes and styles. Your solar installer can help you pick the right panels for your needs.
• Inverter: Solar panels capture direct current (DC) energy from the sun. Alternating current (AC) power is needed to electrify most things in your home. The solar panel inverter changes the flow of the DC current to create AC power, which your home can better utilize. 
• Batteries: Excess energy captured by your solar panels can be stored in batteries, if you choose to add this optional component to your system. Your system may benefit from a battery if you frequently experience power outages. 

Do you want to find out how much you can save with solar panels? Choose Energy can connect you with a solar installer to help you understand the cost of solar and savings for your home. Simply fill out this form to get started.

One big positive of buying a home solar system is receiving solar rebates and Michigan solar incentives. Many available incentives don’t apply to leased systems. Incentives such as the federal tax credits and state net metering policies can make buying your solar system an attainable goal for many homeowners.

• The Residential Clean Energy Credit, formerly known as the Investment Tax Credit (ITC), is a 30% tax credit on solar panel systems installed between the beginning of 2022 and the end of 2023. With this credit, you can claim 30% of the total cost of solar as a credit when you file you federal income taxes. The solar panels must be installed a primary or secondary residence to qualify. There is no set maximum limit with this solar panel tax credit. 
• Net metering. Michigan’s net metering program allows you to earn bill credits throughout the life of your panels as they generate energy. If your system generates more energy than you need during the month, you can send the extra electricity back to the grid. This energy is then sold by the electric company, giving you an account credit.
• LIEEF program. The Low-Income and Energy Efficiency Fund is run cooperatively by the Michigan Public Service Commission (MPSC) and Michigan’s three largest utilities. This statewide fund aims to assist low-income residents in order to promote energy efficiency and conservation.

When you install solar panels on your home, you can save money in multiple ways. You’ve already learned that tax credits and net metering help offset installation costs. Solar panels also help you save money on your monthly energy costs.

Here’s an example of the savings you could experience over time. If you buy a residential solar panel system for $24,815, the federal tax credit will help you recoup 30% on your costs on your tax return — in this case, about $7,500. Depending on your solar production, you may be able to significantly lower your electricity bill. The average monthly electricity bill for Michigan residents is $119. With solar, you could experience savings up to $1,428 each year. 

When you purchase solar panels, you can:

• Increase your home’s resale value
• Receive savings over time
• Decrease your reliance on the energy grid

Solar panels increase your energy independence. Michigan allows residents to disconnect from the traditional electricity grid. You will not be subject to seasonal energy market variations and bill increases. A solar battery is a necessary component to be fully disconnected from the grid.

In off-peak periods of solar power production, you still have the security of being connected to the power grid. Your solar system will still produce the majority of your electricity when sunlight is available.

Investing in solar panels is a big decision. Choose Energy can help you in your research through our marketplace and extensive library of resources. Review our guides on solar panels, such as the best states for solar or the pros and cons of leasing solar panels.

You should consider several factors before you buy solar panels, including:

• Your roof’s condition. Solar panels tend to gather the most energy on south-facing roofs with optimal slopes of 15 to 40 degrees. It’s also best to place them on a newer roof that is in good condition and doesn’t need to be replaced soon. A shaded roof will produce less electricity. 
• HOA rules. Restrictions might exist for placing solar panels on a home, with some homeowners associations. In this case, you might need approval before installation. In Michigan, HOAs do have the power to restrict solar installations, so be sure to research your area’s rules before making your choice.

Want to learn more about solar energy? Call the number on your screen to speak with a solar energy expert and to better understand your options for solar in Michigan. You can also get a quote today that is personalized from a solar installer.

Michigan is competitive among states in solar energy generation. The state ranks 25th in the nation for generating solar energy, with 0.98% of Michigan’s electricity coming from solar power, enough energy to power about 163,900 homes. 

What do the terms green energy and renewable energy mean? Green energy comes from natural sources, such as the sun and wind. Renewable energy is derived from sources that are constant, natural, and renewed without end. All green energy is renewable. 

However, some renewable energy might not be fully green. Solar panels can be placed on residential roofs or ground-mounted in open spaces. Solar projects can be as small as one panel for a home or as large as an industrial complex, making them an attractive, scalable option. There are also portable solar chargers and panels.

As solar panel costs have decreased more than 50% in the past decade, more homes have chosen solar. Michigan was quick to adopt solar power, and the investment in renewable energy has continued to increase. About 216 solar companies operate in Michigan with investments in all solar installations, including residential ones. 

What is the life expectancy of solar panels in Michigan?

Most solar panel warranties last between 25 and 30 years. Proper care and maintenance may even extend the life of your solar panels beyond that. When you consider purchasing solar panels, ask your preferred installer about the specifics of your panels’ warranties. You should familiarize yourself not just with the warranty length but also with the care requirements for the system.

Are there disadvantages to using solar energy in Michigan? 

Solar panels are less popular in Michigan than in the rest of the U.S., which can be seen as a disadvantage. For many homeowners, such a large purchase requires significant research. Because solar panels have such a significant impact on lowering electricity bills, consider how they will help your budget.

How does solar power help the environment?

Solar power is a form of green energy, meaning it does not have harmful effects on the earth’s environment in its production. Solar energy production doesn’t emit the same harmful greenhouse gases as traditional fossil fuel electricity generation. Thanks to this, it helps lessen climate change and pollution.

What percent of Michigan’s energy production is solar?

Michigan currently gets 0.98% of its electricity from solar power, which is enough to power about 163,900 homes. This number continues to increase each year.