Solar Panel Cost Guide in Ann Arbor, MI (2024 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 average cost of solar panels in Ann Arbor is 4 per watt.Using this figure, a typical 6.1-kW system would cost about $17,419 before the 0 federal solar tax credit is applied.
The prices above are just estimates to give you an idea of the cost of a solar energy system. The true cost of making the switch to solar can vary quite a bit depending on multiple factors, such as what size system you need, your energy usage and what company you go with.Many homeowners find going solar is a sound investment. The average homeowner in Ann Arbor can save about $16,000 on their power bills over 20 years.
For a free quote from a local solar company that has been pre-vetted by EcoWatch, 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
Do-it-yourself solar panel installation is a possibility, but it's an undertaking that can be a pain. Using a solar company can make your switch to solar power much easier. Solar warranties and repairs are typically included in the cost of installation when you go with a solar contractor too, which can save you more money over time.
Working with a licensed solar installer can help you make the most of your investment in solar. Here are our recommendations:
Best National Provider
SunPower
- 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
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- 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
The cost of installing a solar system in Ann Arbor can vary by more than $10,000 from home to home. Your actual cost is dependent on several factors. The biggest one is your system size, and other factors include the equipment you choose, financing options and the solar company you choose.
Solar Equipment
The size of the solar energy system you need, 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 nearly $4,060. The solar equipment you choose can increase or decrease your cost by thousands or even tens of thousands of dollars. If you opt for the most efficient solar panel brands, you’ll end up paying more upfront than if you opted for the most affordable panels. However, higher efficiency could save you more over time on your power bills. Additionally, extra products, such as solar batteries, can bring your total well above the Ann Arbor average.
Solar Financing Terms
Most solar installers in Ann Arbor have solar loans, which reduce your upfront costs of installing solar panels.When trying to figure out your overall cost, you should also calculate the interest you’ll pay if you choose to go with a solar loan. Also, paying more upfront can lower the total interest paid over time.
Solar Panel Installation Company
A final consideration when trying to estimate the cost of solar for your home or business in Ann Arbor is the company you choose to install your PV system. As with choosing a company to build a deck or pool, for instance, there are plenty of solar installers that provide a range of services at different price points.Larger national companies usually have lower costs, but some local companies compete with them by promoting sales and discounts. While the smaller companies might not have access to specific equipment options like Tesla Powerwall batteries or add-on services like electric vehicle charger installation, they might be cheaper overall.
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
There are numerous companies to choose from in Ann Arbor, and some homeowners feel overwhelmed considering their options. Picking the right company for you can be challenging, so here are some tips to help you decide:
- Reputation: Make sure your solar installer has a good reputation by confirming it has certifications and licenses, checking how long it's been in business and reading reviews by previous customers and solar experts like EcoWatch.
- Contract: When looking through your solar installer’s contract, ask for clarification about any terms you’re not sure of and be sure you understand what happens in scenarios such as a system component breaking or if the company goes 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 timeline.
- Warranty: Each company may offer different kinds of warranties that cover different things. A 25-year, all-inclusive warranty is the gold standard.
Best National Provider
SunPower
- 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
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- 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
How much does it cost to install solar panels in Ann Arbor?
This is a difficult question to answer precisely, because the cost depends on a variety of factors. Generally speaking, it costs about $20,300 for a 5-kW system and $40,600 for a 10-kW system after the ITC is applied. It will cost more if you want extra solar equipment or more efficient panels, or if you have higher-than-average energy needs. On the other hand, you can spend less if you go with a smaller solar panel system or less expensive solar panels.
Are solar panels free in Ann Arbor?
A solar panel system isn’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.
How much can I save on energy bills after installing solar panels?
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?
To figure out what solar panel system size you need, you need to know how much energy your home uses and how much sunlight your home gets. For a general estimate, however, since each panel can typically produce about 250 to 400 watt-hours per hour, the average household will need 20 to 35 panels.
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.