Solar Panel Cost Guide in Ann Arbor, MI (2023 Update)

  • Ann Arbor Solar Installation Cost: $12,058
  • 25-Year Savings: $13,062
  • Payback Period: 12.0 Years

See cost of a solar system near you:

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated May 04, 2023

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We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

Average Cost of Solar Panels in Ann Arbor

We break down average solar pricing in Ann Arbor.

The average cost of solar panels in Ann Arbor is 2.81 per watt. The average solar panel system size in Ann Arbor is around 6.1 kilowatts, meaning a cost of about $12,058 for a solar installation, or $17,243 before the 30% federal solar tax credit is applied.

Bear in mind that the figures above are only estimates based on the average Ann Arbor homeowner. The price of a solar system for your home may be different depending on factors unique to you, like your household energy use and solar contractor. For most homeowners, the upfront cost of solar power is worth paying. On average homeowners in Ann Arbor see about $16,000 in savings on utility bills over 20 years.

Click the button below to get connected to a reputable solar company in your area for a custom estimate.

Solar savings over time in Ann Arbor

Year Return on Investment
1 years $-11,053
3 years $-9,043
5 years $-7,034
7 years $-5,024
9 years $-3,015
11 years $-1,005
13 years $1,005
15 years $3,014
17 years $5,024
19 years $7,033
21 years $9,043
23 years $11,052
25 years $13,062

Top Solar Installers in Ann Arbor

Although it's possible to install solar panels by yourself, it takes extra effort and knowledge. That's why almost all homeowners choose to hire a solar panel installer. The expertise that solar installers offer can be useful as well, especially if you aren't sure what brand of solar equipment you need.

There are several licensed solar professionals that can install solar panels for you. Here are our suggestions:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Solar Veteran

Michigan Solar Solutions

★★★★★
4.5

  • Great warranty coverage
  • Outstanding customer service
  • Offers products from leading manufacturers
  • Slightly limited service offerings
  • No leases or PPAs

Outstanding Local Installer

Strawberry Solar

★★★★★
4.5

  • Outstanding customer service
  • Representatives are experts on local policies
  • Educational, no-pressure sales approach
  • Limited warranty coverage
  • No leases or PPAs
  • Limited brands of solar equipment available

See all of the solar companies in Ann Arbor

Factors that Affect Solar Panel Costs in Ann Arbor

There are several factors that can affect your total installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that performs the installation.

Solar Equipment

The size of the solar energy system you need for your household, which is measured in kilowatts, is the most important cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by about $2,810. The type of solar equipment you choose can bring your price up or down by thousands or even tens of thousands of dollars. If you get the most efficient solar panel brands, you'll end up paying more upfront than if you opted for the most affordable panels. On the other hand, higher efficiency could save you more over time on your electric bills. In addition, add-on products, such as solar batteries, can bring your total well above the Ann Arbor average.

Solar Financing Terms

Most solar installers in Ann Arbor offer solar loans, which reduce your upfront costs of installing solar. You'll have to consider the long-term cost of loans, including the amount of interest you'll pay over the length of the loan. If you can only get a high-interest loan, then your total can be hundreds or even thousands of dollars more than the principal cost. Making a larger down payment or finding a solar loan with a low APR could reduce your costs significantly.

Solar Panel Installation Company

The final major cost factor you should take into consideration is the installer you choose. Given the growing popularity of green energy solutions in Ann Arbor, you'll have lots of options to choose from, but each comes at various price points for labor and equipment. Some companies only sell high-efficiency and high-priced products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come with an above-average cost. It's best to do some research and go with the company that provides the products, warranties and services you're looking for and also fits within your budget.

Solar Panel Cost Data by System Size

System size Cost per system watt Solar system cost 25-Year savings Payback period
6 kW $2.92 $12,274 $12,316 12.5 years
8 kW $2.87 $16,051 $16,737 12.2 years
10 kW $2.81 $19,670 $21,314 12.0 years
12 kW $2.75 $23,132 $26,049 11.8 years
14 kW $2.70 $26,436 $30,941 11.5 years
16 kW $2.64 $29,584 $35,991 11.3 years
18 kW $2.59 $32,574 $41,198 11.0 years
20 kW $2.53 $35,406 $46,562 10.8 years

How to Save on Solar Panels

Since the type of solar panels and the installation company you choose significantly influences your costs and your system's efficiency, production, and durability, it's important to pick the right ones for you. Here are some tips to keep in mind to help with your decision:

  • Reputation: Your solar installer should have a solid reputation as a company and have verifiable expertise in the field. Two ways to check this are to look for whether a company has technicians certified by the North American Board of Certified Energy Practitioners (NABCEP) and if it has good reviews from previous customers.
  • Contract: When looking over your solar company's contract, ask for clarification about any terms you're not sure of and make sure you understand what happens in scenarios like a system component breaking or the company going out of business.
  • Installation Process: Homeowners should make sure they understand how exactly the installation process will go, as well as important factors like the project completion timeline.
  • Solar Panel Brands: Not all solar installers have the same brands of solar panels, so the brand and type of panel you want can play a considerable role in the company you opt for.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Solar Veteran

Michigan Solar Solutions

★★★★★
4.5

  • Great warranty coverage
  • Outstanding customer service
  • Offers products from leading manufacturers
  • Slightly limited service offerings
  • No leases or PPAs

Outstanding Local Installer

Strawberry Solar

★★★★★
4.5

  • Outstanding customer service
  • Representatives are experts on local policies
  • Educational, no-pressure sales approach
  • Limited warranty coverage
  • No leases or PPAs
  • Limited brands of solar equipment available

EcoWatch's Ann Arbor, MI Solar Cost FAQs

What is the average cost of installing solar panels in Ann Arbor?

The average cost of solar panels in Ann Arbor is about $14,050 for a 5-kW system and $28,100 for a 10-kW system before the ITC, but the actual cost will depend on stuff like the model of solar panels you want, what size system you need and how much energy you use.

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 affordable, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can help lower the cost.

Do solar panels increase your property value?

Installing solar panels on your home can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Ann Arbor is currently $337,523, which means you can look forward to a value of about $13,838 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Ann Arbor is a fruitful investment.

How long do solar panels last in Ann Arbor?

Though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they stop working completely at that time. What this means is the amount of energy they produce will have decreased significantly after that point. You can choose to replace them after having them for that long or you can keep using them at a lower efficiency.

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.

Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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