Solar Panel Cost Guide in Ann Arbor, MI (2025 Update)
- Ann Arbor Solar Installation Cost: $17,419
- 25-Year Savings: $13,064
- Payback Period: 17.3 Years
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Average Cost of Solar Panels in Ann Arbor
See how much it might cost to install solar panels in Ann Arbor.
The national average cost of solar panels is $2.66 per watt, but in Ann Arbor it’s 4 per watt.The average solar panel system size in Ann Arbor is around 6.1 kilowatts, meaning a cost of about $17,419 for a solar installation, or $24,909 before the 0 federal solar tax credit is applied.
The true cost of your system can go above or below the average in Ann Arbor depending on several factors, such as the model of solar panels you choose and the solar installer you hire.But, once you've paid the upfront cost of installation, the return on investment for most homeowners is quite rewarding, with a net average savings of about $16,000 over 20 years on utility bills.
For a free quote from a local solar installer that has been pre-vetted by the EcoWatch team, click the button below.
Solar savings over time in Ann Arbor
| Year | Return on Investment |
|---|---|
| 1 years | $-16,027 |
| 3 years | $-13,242 |
| 5 years | $-10,457 |
| 7 years | $-7,673 |
| 9 years | $-4,888 |
| 11 years | $-2,103 |
| 13 years | $681 |
| 15 years | $3,466 |
| 17 years | $6,251 |
| 19 years | $9,035 |
| 21 years | $11,820 |
| 23 years | $14,605 |
| 25 years | $17,389 |
Top Solar Installers in Ann Arbor
When switching to solar energy, many homeowners choose to use a solar installer since handling can be a time-consuming project. Plus, warranties and repairs from your solar panel installer can protect your investment and reduce the cost of maintenance over time.
If you're searching for a solar company in Ann Arbor, we've put together a list of our top suggestions here:
See all of the solar companies in Ann Arbor
Factors that Affect Solar Panel Costs in Ann Arbor
For many Ann Arbor homeowners, the decision to install solar panels depends on cost. However, the range of solar installation costs can be quite wide in Ann Arbor, with typical prices between $20,000 to $40,000. There are a number of factors that considerably influence the price you’ll pay, which we'll go over below.
Solar Equipment
The cost of solar panels varies by thousands of dollars due to some different factors. One of the notable factors is the system size, which is measured in kilowatts (kW). Solar power systems with better efficiency or power production use better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $4,060.The brand and kind of equipment you get for your solar system can raise or lower the price quite significantly. If you prefer a brand name like Tesla or SunPower, these often come at a higher price than other brands. Efficiency also matters. Whether you’re opting for high efficiency because you have limited roof space or just want maximum energy production, you will be looking at a higher equipment cost, but this can typically lead to greater savings over time. Plus, if you want add-ons like an electric vehicle charger or solar batteries, this will also raise the cost.
Solar Financing Terms
Solar panels can save you money on power bills over time, but they can also be a big investment. That’s why many Ann Arbor homeowners opt to finance their solar panel systems to make paying for solar more affordable.When estimating your overall cost, you should also calculate the interest you’ll pay if you opt for a solar loan. Also, paying a higher down payment can reduce the total interest paid over time.
Solar Panel Installation Company
A final factor to keep in mind when trying to figure out the cost of solar for your home or business in Ann Arbor is the company you choose to install your PV system. Similar to choosing a company to build a deck or pool, for instance, there’s no shortage of solar installers that offer a range of services for different budgets.The size of the company can sometimes play the most considerable role in your costs. Larger national companies, like SunPro and Sunrun, often have lower pricing because they have more resources and bulk pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or discount can bring their pricing lower to compete with bigger names.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $4.22 | $17,734 | $6,856 | 18.0 years |
| 8 kW | $4.14 | $23,191 | $9,597 | 17.7 years |
| 10 kW | $4.06 | $28,420 | $12,564 | 17.3 years |
| 12 kW | $3.98 | $33,422 | $15,759 | 17.0 years |
| 14 kW | $3.90 | $38,196 | $19,181 | 16.6 years |
| 16 kW | $3.82 | $42,744 | $22,831 | 16.3 years |
| 18 kW | $3.74 | $47,064 | $26,708 | 15.9 years |
| 20 kW | $3.65 | $51,156 | $30,812 | 15.6 years |
How to Save on Solar Panels
The company that does your solar system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Since picking a company can be difficult, we have some tips to help you, such as:
- Reputation: Companies that have been operating for many years likely have a high reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide adequate aftercare and customer support, such as part repairs and replacements.
- Contract: Although reading through a contract can take a lot of time, it’s important to do it fully so you can make sure you understand how much the equipment and services will cost and how part repairs and replacements will be handled.
- Installation Process: When going solar, it’s necessary to maintain an open line of communication with your solar panel installer. Make sure you understand how the installation process works and the completion timeline.
- Warranty: Warranties that provide coverage for panel repairs and maintenance over a couple decades are the gold standard in the business, and offering that kind of warranty is one mark of a quality company.
EcoWatch's Ann Arbor, MI Solar Cost FAQs
How much does it cost to install solar panels in Ann Arbor?
The average cost of solar panels in Ann Arbor is about $20,300 for a 5-kW system and $40,600 for a 10-kW system before the ITC, but the real cost will depend on things such as the type of solar panels you want, what size system you need and how much energy you consume.
Can you get solar panels for free in Ann Arbor?
Solar panels aren’t free in Ann Arbor, but there are some options that can make getting them more feasible, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that you can take advantage of.
Can solar panels completely eradicate my power bills?
Solar panels can potentially eliminate your electricity bills depending on your location and the efficiency of your system. Even if it doesn’t get rid of them completely, you can save a lot of money on your bills, about $819.68 per year.
What solar power system size is right for my home?
The exact number of solar panels you need depends on your household energy usage and the average daily sunlight your roof gets. You can look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to get between 20 and 35 panels to account for their typical energy usage.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.