Cost of Solar Panels in Michigan: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Michigan:

  • Average Cost Per Watt: $2.81
  • Cost of Average System: $14,556*
  • Cost of Energy Without Solar: $43,322
  • Payback Period: 10 Years**
  • Lifetime Savings of Going Solar: $23,652

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/19/2022

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Find Cost Savings on Solar in Michigan

As a homeowner in Michigan, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Michigan
  2. Solar Panel System Installation Cost in Michigan
  3. What Determines the Cost of Solar Panels in Michigan
  4. Michigan Solar Incentives
  5. Best Solar Panel Brands and Installed Solar System Costs in 2022
  6. FAQ: Solar Panel Cost Michigan


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The Green Panel

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Keep in mind that these figures are only estimates, and the price of a solar solution for your home may look quite different based on factors unique to you.

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Cost of Solar Panels in Michigan

Solar panel systems in Michigan are sold by the watt, at an average price of $2.81 per watt. This is above the national average of $2.66, so the cost of going solar in Michigan is a bit higher than in most other states. The typical system size recommended for Michigan homes is 7 kW, for which the average price is around $14,556 after the federal tax credit is taken.

The average monthly electric bill in Michigan is well above the national average at around $143. While energy costs aren’t comparatively that expensive, homeowners throughout the state use a lot of it. The slightly above-average cost of going solar, the rising electricity rates and the large amount of energy used make solar energy a great option in Michigan.

Solar Panel System Installation Cost in Michigan

Solar panel systems in Michigan typically range anywhere from around $10,000 to well over $20,000. The most significant factor to consider when determining where within that range your total will fall is the size of your system. Systems are priced according to watts, and every additional kilowatt will add approximately $2,810 to your total. The table below provides some average pricing for typical system sizes in Michigan.

Size of Solar Panel System Michigan Solar Panel Cost Cost After Federal Tax Credit
5kW $14,050 $10,397
6kW $16,860 $12,476
7kW $19,670 $14,556
8kW $22,480 $16,635
9kW $25,290 $18,715
10kW $28,100 $20,794

Interested to see the best solar companies in Michigan that offer affordable, high-quality systems? Click below.

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What Determines the Cost of Solar Panels in Michigan?

Size is, by far, the most crucial factor to consider when pricing out your solar energy system. However, there are other things that can influence the price of solar panels, the more crucial of which are discussed below.

Solar Equipment

As is the case with any home improvement, the equipment you choose for your solar system can raise or lower the price quite significantly.

Firstly, the brand matters. The many manufacturers of solar equipment provide varying levels of quality, durability and energy efficiency and each company’s products come at a unique price point. Solar customers looking for the most efficient solar panels, whether they have to opt for high efficiency because they have a small roof or just want maximum energy production, will be looking at a high equipment cost. However, the upfront cost will typically lead to greater savings over time.

Other customers might want specific brands, like Tesla Powerwall or SunPower solar panels, because they trust the brand name. These often come with higher upfront costs as well that could pay off in time.

Secondly, the type of equipment you want to be included in your solar panel system can have a significant impact on your cost. Most systems include solar panels and an inverter, but many customers choose add-ons like electric vehicle chargers or solar batteries, all of which will increase the total.

Solar Financing

Going solar is more affordable than ever before, but it’s still too expensive for many customers to switch to clean energy with a cash purchase. Solar loans are a popular option because they reduce your upfront costs and let you pay for your system over a term of, on average, between five and seven years.

While the upfront cost is significantly reduced with solar loans, you’ll have to take into consideration the interest you’re expected to pay and add that to your total. On an average system that totals $14,556 in Michigan, you could be looking at hundreds or even thousands of dollars in interest, which can bump up your effective total quite a bit.

Regardless of your annual percentage rate (APR), paying more upfront in your down payment can reduce the total interest paid over time. As such, the more you’re able to pay now, the less you’ll pay overall for your solar panel system.

Solar Installation Company

Finally, the company you choose to install your solar panel system can affect your pricing. Michigan’s solar companies all have different labor costs and add varying upcharges to equipment. Some companies only sell high-quality, high-efficiency and high-price products — like Maxeon solar panels from SunPower or Tesla Powerwalls — so choosing those installers will generally come with an above-average cost.

Larger national companies tend to have lower prices because they buy products in bulk and have greater resources, but some smaller local companies undercut them by providing discounts, sales and other incentives.

It’s best to do some research and find a company that provides the products, warranties and services you’re looking for and fits into your budget.

Michigan Solar Incentives

Luckily, there are many governmental programs available at the federal and state level to make switching to renewable energy more accessible for Michigan homeowners. Below are all of the solar incentives, rebates and credits you can take advantage of in the Great Lakes State.

Federal Solar Tax Credit For Michigan Homeowners

The federal solar investment tax credit (ITC) is a credit offered by the federal government to all Michigan homeowners who convert to solar energy in their homes. This is one of the most appealing solar incentives, as it provides a rebate in the amount of 26% of your total cost to install your solar system. In Michigan, with an average system cost of $19,670, that equates to an effective savings of $5,114.

The federal tax credit is scheduled to dip to 22% for installations completed in 2023 and then be eradicated for residential solar projects in 2024. Congress has the option to renew the bill, but even if it does, the rebate rates will almost certainly be lower than they are now.

Net Metering Policies in Michigan

Net metering is a billing option that allows two-way movement of energy via an inverter. When your home is demanding more energy than your solar panels are producing, the electrical grid will supplement electricity to meet the demand.

When your panels are producing more than your home is consuming, the excess energy will be sent to the grid and you’ll be compensated in some way. Compensation can be in the form of credits to your electric bill or in direct payment from the energy company.

Unfortunately, net metering is not mandated by the state government in Michigan, so some power companies throughout the state do not offer it, and many offer a less appealing net metering option where they charge retail prices for energy sent to your home but pay wholesale prices for overproduction you send them.

For example, Detroit Energy (DTE) is planning on decreasing net metering from retail to wholesale and switching to an in-flow, out-flow model. This new system will be less beneficial to solar customers and decrease savings over time.

Before you sign any contracts or agree to switch to solar, make sure you check the net metering policy offered by your electric company, as this single factor can change how much you save in the long run and how long it takes to pay off your solar system.

PRO TIP: When you’re choosing a solar panel installation company, check to make sure it has worked with your power company in the past. Installers that aren’t familiar with utility companies often cause delays in the process. Check the company’s net metering policy as well to determine how much benefit you’ll get from your solar conversion.

Local Solar Rebates in Michigan

Finally, there are some local rebates provided by the State of Michigan to incentivize residents to go solar.

First, the state offers a property tax exemption. Solar panel installation raises the value of your home, provided you buy or finance the system. Normally, an increase in home value would affect the assessed value and, consequently, your property taxes. To reduce the effective cost of installing solar, the state refuses to tax any added home value from your solar system, potentially saving you thousands or tens of thousands of dollars over time.

Second, the Michigan Saves Home Energy Loan Program is an organization that negotiates loan terms and APR to secure affordable financing for customers in Michigan. Provided you opt for an approved installer within the program’s network, you could save hundreds or thousands of dollars in financing costs by getting a lower APR through the program.

Third, the Michigan Local PACE program is another that helps secure affordable financing for Michigan residents for photovoltaic equipment. It allows you to pay off a low-APR loan via special assessments on your tax bills, making renewable energy more accessible for everyone.

For more information about additional incentives, you can check the Database of State Incentives for Renewables & Efficiency (DSIRE) website before you commit to going solar.

Best Solar Panel Brands And Installed Solar System Costs in 2022

There are many solar manufacturers out there that produce high-quality equipment, including panels, solar batteries, EV chargers and more. Based on our review of the best solar panels, below are some of the more reliable manufacturers, along with relative pricing.

Panel brand Avg cost ($-$$$$$)
LG $$$
Canadian Solar $$$
JA solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

Ready to see how much solar panels would cost for your Michigan home? To get a free, no-obligation solar quote based on your household’s energy usage, please refer to quotes below:

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People Also Ask

FAQ: Solar Panel Cost Michigan

The EcoWatch team gets tons of questions about home solar PV systems from Michigan residents. Below are some of the questions we see most often.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.