## Solar in Michigan

Michigan electricity rates have risen 19% between 2020 and 2024, and at 19.29 cents per kWh — well above the national average — more homeowners are looking for a smarter, more stable way to power their homes. Solar is one of the most practical options available today.

This guide covers everything you need to know about going solar — from how [home solar panels](/content/solar/solar-panels-for-home/index.html) work to what the installation process looks like and what to expect along the way.

### MICHIGAN by the Numbers

- [28th](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States
- [21k](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels
- [3.3](/content/local/peak-sun-hours/index.html) Average daily peak sun hours
- [~$32k](/content/local/michigan/#solar-cost-calculator/index.html) Michigan average savings over 25 years

## Michigan Solar Panel Cost

Curious what solar actually costs in Michigan? This calculator is built on real installation data from cities across the state — from Grand Rapids to Detroit to Lansing. It shows both leasing options (like Palmetto’s LightReach program, with no upfront cost) and cash purchase, so you can compare what makes sense for your home.

| Lease | Cash Purchase |
| --- | --- |
| **System Size** | **This system size is designed to offset approximately 100% of the average electricity usage for a home in Michigan.** |
| Recommended System | 6.80 kW | Typical for your home size in MI |
| Your Monthly Payment | Estimated monthly cost with LightReach | $78/mo |
| As low as | $78/mo |

### Cost Breakdown

| Your estimated investment | |  |
| --- | --- | --- |
| **System Cost** | $21,521 | Cost Per Watt: $3.16/W |
| **Final Cost** | $21,521 |  |
| **Savings** | Your total financial benefit |  |
| Monthly Savings | Average utility bill reduction | $72 |
| Payback Period | Break-even point | 18.9 years |
| 25-Year Savings | $31,535 |  |

## Palmetto Reviews

Palmetto completed **installation of the solar panels** on my roof, yesterday. They were exceptional. The installation crew was **prompt, professional, and courteous**. They maintained a clean and orderly workspace. Despite being impacted by afternoon thunderstorms, they completed the installation in a timely fashion.

- **Paul Stinavage** (Kalamazoo, Michigan)

Jonathan Sedlar was the man who helped us get started and he was with us **every step of the process**. Everyone made us feel comfortable with the process because they were so **knowledgeable**. The **installation crew** was great and showed up on time and they knew what they were doing and got it done well.

- **Bridget Horton** (Rockford, Michigan)

The **installation was professionally done** on time neatly and with care as if it was their own house. The installers were **courteous and informative** on what was going on with each part of the installation.

- **Donald Sonnenberg** (Otsego, Michigan)

## Key Takeaways

- Michigan electricity rates are above the national average and have risen nearly 20% since 2020 — making solar a smart, stable alternative.
- Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance, and a 90% Production Guarantee included.
- Michigan offers strong solar incentives — including property and sales tax exemptions, plus utility rebates from DTE Energy and Consumers Energy.

## Michigan Electricity Prices

Michigan residents pay some of the highest electricity rates in the country — and those rates have been climbing steadily for years. From 2021 to 2024, the average Michigan electricity rate rose from 17.5¢ to 19.3¢ per kWh — a 10% increase in just three years, and well above the national average of 16.5¢.

Solar panels help offset that cost by generating electricity at home. The more your system produces, the less you rely on the grid — and the less exposed you are to future rate increases.

### Michigan Area Utility Providers

| Provider | Rate |
| --- | --- |
| Consumers Energy | 18.80¢ |
| DTE Energy | 19.70¢ |
| Great Lakes Energy | 17.70¢ |
| Indiana Michigan Power | 15.70¢ |

## Michigan Solar Incentives

Michigan homeowners have access to a strong set of [solar incentives in Michigan](/content/local/michigan/#incentives-table/index.html) — from statewide tax exemptions to utility rebates — that can meaningfully reduce the cost of going solar.

### Incentives Overview

| Incentive | Type | Description | Source |
| --- | --- | --- | --- |
| Michigan Property Tax Exemption for Solar | Property Tax Exemption | Michigan law exempts the added home value from a solar energy system (up to 150 kW) from property tax assessments, saving homeowners hundreds of dollars per year. | [Learn More](https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-7hh) |
| Michigan Sales Tax Exemption for Solar | Sales Tax Exemption | Michigan exempts solar energy systems — including panels, inverters, racking, and battery storage — from the state’s 6% sales tax at the point of purchase. | [Learn More](https://www.michigan.gov/taxes) |
| Michigan Distributed Generation (DG) / Net Metering Program | Net Metering | Michigan’s Distributed Generation Program credits solar owners at or near the full retail electricity rate for excess power sent to the grid, with credits carried forward month to month. | [Learn More](https://www.michigan.gov/mpsc) |

### Michigan Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Michigan’s cold winters and cloudy skies may seem like obstacles, but longer summer days and reflective snow actually boost solar production — making Michigan a surprisingly strong state for solar energy.

#### Key Facts:

- Values shown are daily averages
- Based on 18 years of satellite data

### What Can the Average Michigan Solar System Power?

#### Summer Production (July)
- **41.3 kWh/day**

#### Winter Production (December)
- **6.0 kWh/day**

#### Annual Production
- **9420 kWh/year**

Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- Equal the environmental benefit of planting 175 trees
- Save approximately $4,234 in electricity costs

## Frequently Asked Questions

**Does Michigan have net metering?**  
**Yes.** Michigan replaced traditional net metering with the **Distributed Generation (DG) Program** under Public Act 235 (2023). Excess solar energy sent to the grid is credited at the **full retail electricity rate** and carries forward month to month.

**How does leasing solar work and what’s the approximate cost in Michigan?**  
With Palmetto’s **LightReach program**, leasing solar is simple: one fixed monthly payment covers the system, installation, monitoring, maintenance, and a **90% Production Guarantee** — with **no upfront cost**. For a typical **6.80 kW system in Michigan**, the estimated monthly lease payment is approximately **$78/month**.