Solar panel cost in Michigan

The average cost for an installed residential solar system in Michigan is currently $11,797 after claiming the 26% federal solar tax credit. This is $2.66 per watt.

Solar prices near you

Cost range of local prices

$14,779-$18,063

Net profit (savings less system cost)

$27,939-$34,147

Payback period

10.1-12.3 years

Recommended size for the selected utility bill

7.1kW

Chart 1: Distribution curve of MI residential solar cost 2020
$16K
SolarReviews average

Note: Prices after 26% Federal Solar Tax Credit

MI solar panel cost calculator

Cash flow graph based on cash purchase of a 7.1kW system

Michigan solar power overview

Despite there being little in terms of state-based incentives, investing in solar in Michigan can still be profitable. Thanks to net metering and the federal tax credit, homeowners who switch to this form of renewable energy save big on their electricity bills and drastically reduce their carbon footprint.

Are solar panels worth it in Michigan

Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

6¢ /kWh

If you don't get solar

35¢ /kWh

(forecast avg Michigan electric rates over the next 25 years)

Michigan solar incentives & tax credits

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Net Metering

Top 10 solar panel brands installed in Michigan in 2020

Average cost of solar panel installation in Michigan by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $11,600 $12,412
5kW $13,915 $14,889
6kW $15,942 $17,058
7kW $18,410 $19,699
8kW $21,360 $22,855
9kW $23,184 $24,807
10kW $25,490 $27,274

Best solar companies in the main cities of Michigan

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Michigan

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter where the direct current (DC) electricity is converted into alternating current (AC) electricity that can be used by your home or exported to the electric grid.

Off-grid solar system

Off-grid solar power involves meeting all your energy needs from the power of the sun. There’s no utility to fall back on. This means the solar installation needs to power the home not just during the day, when the sun is shining, but after dark as well.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Michigan in 2020?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Michigan will fall during 2020.

Can you buy DIY Solar Panel Kits and install them yourself in Michigan?

In Michigan, contractors must have a state electrical license in order to be considered qualified. Utilities and incentive programs may have additional requirements.

Buy DIY solar panel kits online

Prices don’t include installation, permits or inspections

How much electricity do solar panel systems generate in Michigan?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 24-degree pitch roof Michigan will generate 1,550kWh of peak DC (direct current) capacity per year per 1kW in Michigan.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Michigan solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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