2025 Solar Incentives Guide for Bloomfield, MI - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Bloomfield?

Source: https://www.dsireusa.org/

Solar incentives are meant to encourage people to make the switch to renewable energy by providing financial incentives meant to lower the burden of solar panel installation and use. These incentives might include upfront discounts, cash back or monthly credits towards your utility bill. Some incentives are handled by the federal government, some by the Michigan government and some by your utility company, county or municipality. You might qualify for any of the following types of solar incentives:

• Tax Credits: Tax credits decrease, dollar-for-dollar, the amount of income tax you owe the government. These are different from tax deductions.
• Tax Exemptions: These could come in the form of property tax exemptions, which let you ignore the value added by your solar panels when calculating the taxes you pay on your home. You may also qualify for an exemption on sales tax at the time of purchase.
• Net Metering: Net metering factors in once your solar panels are up and running. If you have in place a net metering agreement with your Bloomfield utility company, the company will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some areas, this is a dollar-for-dollar credit, while in others you might get refunded a percentage of the value.
• Rebates: Rebates, or partial refunds after a purchase, are usually given prior to any solar tax credits being calculated. These rebates might be given by your local utility company, by your county or by your state.

Federal Solar Incentives

Federal incentives are the type of incentives that you are most likely to have some knowledge of. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. This incentive is a tax credit equal to a certain percentage of the money you spend on your solar system.

The ITC applies to solar panels installed after January 1, 2006, on a primary or secondary residence in the United States that you own. The credit initially covered 30% of the total cost – for panels, equipment, labor and accessories – although that amount may range from 26-30%, depending on the installation date of your solar system. There is no cap on the claim amount.

Have questions about how the ITC applies to your specific situation? Reach out to your local Bloomfield solar panel installation expert to get more information.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was expanded and extended by the passing of the Inflation Reduction Act. Homeowners can now receive a credit equal to 30% of the total costs of solar system installation for projects that began after January 1, 2022, and will be finished by the end of 2032. The percentage will then decrease yearly until the Clean Energy Credit expires in 2035. Starting in 2023, the expansion will also make claiming credit for energy storage systems easier than ever before.

More information about the new Inflation Reduction Act can be found here. The easiest way to understand how the new Clean Energy Credit might apply to you is to speak with your local Bloomfield solar panel installation expert directly.

State & Local Solar Incentives

Tax credits, rebates and more might be provided at multiple levels. In addition to federal solar incentives, there are often state and local ones, too. The incentives — which might be handled by your county or municipality, or by the state of Michigan — might be offered for only a limited time, or on an ongoing basis.

Next Steps for Installing Solar in Bloomfield

Nationwide solar energy use has gone up significantly in the last 15 years, in part thanks to the growth in the number of solar incentives. You may get these incentives from your local utility company, the federal government or the Michigan government. Reaching out to your local Bloomfield solar panel installer is the right first step towards getting all the incentives you qualify for when you switch to solar energy.