Michigan Solar Guide 2026
Everything Michigan homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about Michigan solar
Michigan's relatively high electricity rates ($0.17/kWh) partially compensate for weak export credits under new net billing rules. Detroit and Grand Rapids have faster-growing solar markets than northern MI.
Peak sun hours
4
hrs/day avg
Avg electricity rate
17.0¢
per kWh
Median install cost
$3/W
before incentives
Typical payback
12 yrs
8 kW system, avg usage
Typical 8 kW system in Michigan
Annual production
11,680 kWh
Year-1 savings
$1,986
System cost (est.)
$24,000
No federal tax credit — Section 25D expired December 31, 2025.
Michigan Net Metering Policy
Inflow/Outflow billing (net billing)
Michigan's 2023 legislation (HB 5120) phased out full retail NEM for new customers. Consumers Energy and DTE now use inflow/outflow billing — exports credited at avoided cost (~$0.04–$0.06/kWh) rather than retail.
Michigan Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Michigan Saves green financing program
- ✓Property tax exemption
- ✓Consumers Energy / DTE periodic rebates
Top Utilities in Michigan
Interconnection timeline: 6–12 weeks
Calculate your Michigan solar economics
Our calculators are pre-filled with Michigan data. Run any tool below.