Michigan solar rebates and tax credits calculator

Solar incentive

Federal ITC 30% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your home's location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Michigan solar incentives 2024

Despite the best efforts of Governor Gretchen Whitmer, who in 2019 signed into law a bill reinstating a property tax exemption for solar, the net metering rules for solar here were weakened significantly by DTE. Read on to learn what those impacts mean for your investment in home solar panels in Michigan.

On this page, we cover all of the solar and battery incentives, rebates and tax credits available for your Michigan home. We also encourage you to use the Michigan solar calculator above. It allows you to drill down and show only your roof and computes a savings estimate customized to how much sun you get where you live.

On this page, you can:

  1. Learn what solar incentives are available to Michigan homeowners

  2. See what Michigan solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Michigan solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Michigan

If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.

The federal tax credit falls to 26% starting in 2033.

Net energy metering in Michigan

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.

In 2019, the Michigan Public Service Commission eliminated full retail net metering in the state. The MPSC opted instead for a credit for solar customers at the “power supply component” of the retail rate minus transmission charges. That basically means you are credited at about half of the full retail for the power you send back to the grid.

More than ever it’s important to properly size your solar energy system for your usage, and perhaps look into onsite energy storage so you aren’t sending valuable electricity back to your utility on the cheap!

Michigan can and has done better than this, but it’s now going to be difficult for solar installers in the state to expand. Regardless, home solar power can still be a smart investment here. Use our solar calculator to find out why.

Michigan solar rebates

While Michigan does not have a dedicated state rebate for solar panel installation, some manufacturers offer their own solar rebates. These programs are usually time sensitive. 

Property tax exemption

Michigan's solar property tax exemption has been on a bit of a roller coaster in the past decade. The state had one for many years, but it went away in 2013 under former Governor Rick Snyder. Then in 2019, Gov. Gretchen Whitmer signed a bill to reinstate the property tax exemption for solar.

That means the tens of thousands of dollars in value your solar panels add to your property cannot be considered in assessing your home for property taxes. That's a win!

Cost of solar panels in your part of Michigan after all applicable solar incentives

Showing data for:

Prices based on a 10.2kW system, after 30% federal tax credit

Solar prices near you

Cost range of local prices

$16,728-$20,445

Payback period

10-12.2 years

Net profit (savings less system cost)

$33,397-$40,818

Average size system installed in MI in 2024

10.2kW

Solar panel cost calculator

Best 10 solar companies in Michigan

28 solar companies in Michigan provide pricing on SolarReviews. Here are the best rated companies near you.

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