Key takeaways


olar power has increasingly come under the spotlight as a viable form of renewable energy. But does the solar equation balance out in Michigan, a state more famed for its icy winters than sunny days? Let's analyze this further.

The Practicality of Installing Solar Panels in Michigan

Despite its reputation, Michigan surprisingly receives ample sunlight to make solar photovoltaics (PV) a feasible option. The state experiences an average of 4 hours of peak sunlight per day, which is enough for PV panels to generate a significant amount of electricity. This abundance of sunlight forms the backbone of a strong solar infrastructure.

Another key factor is the economic aspect. The costs of solar energy in Michigan have fallen by 54% over the past decade, bringing green power within the reach of more homeowners. Additionally, Michigan's array of incentives for PV installations can further offset the initial investment, making the switch to solar a financially sound decision.

Perhaps unexpectedly, Michigan's colder climate also contributes to its solar potential. PV systems, contrary to popular belief, thrive when it's cooler. Lower temperatures enhance the efficiency of the panels, prolonging their lifespan and improving their output.

All things considered, it's clear that Michigan's potential is not to be underestimated. With a favorable combination of ample sunlight, reducing costs, enticing incentives, and ideal climatic conditions, the solar equation does indeed make perfect sense in Michigan.

What to Expect in PV Energy Costs

Many factors can influence the final price tag on your solar dreams. The size of the installation, measured in kilowatts (kW), is a primary factor. A larger system will, of course, carry a heftier upfront cost, but it will also yield greater electricity savings over the long run.

The cost per watt for solar energy in Michigan averages $3.50, which is higher than the national average of $2.95. Despite this disparity, Michigan residents tend to consume less electricity compared to residents of other states. As a result, they can opt for smaller arrays to compensate for their energy consumption. On average, a 6-kilowatt array in the state would cost around $17,850 to $24,150, with the average gross price being $21,500. Fortunately, thanks to the 30% federal investment tax credit (ITC) and various state and local incentives, the final net cost for installing a PV system can decrease substantially, potentially saving a significant amount of money.

Remember, the quality of the panels and other equipment can also impact costs. High-end, efficient products might be more expensive initially, but they tend to have longer lifespans and better performance, providing more bang for your buck over the long term.

Other costs to consider include labor and permitting fees, which can vary widely depending on your location and the specific conditions of your property. Finally, the direction and tilt of your roof, along with any potential shading issues, can impact the efficiency of your solar panel installation Michigan and thus, the cost-benefit analysis of your investment.

Use your own personal savings calculation to shop and compare top providers

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Green Power Incentives You Should Know About

As solar power in Michigan gains popularity, it's essential for homeowners to familiarize themselves with the array of incentives available to them. These incentives, ranging from tax credits to loan programs, are designed to ease the transition to solar energy, making it more affordable and accessible. Let's explore these incentives further.

First off, there's the Federal Tax Credit, also known as the Investment Tax Credit (ITC). Homeowners who make the switch to solar power in Michigan can enjoy a 30% discount, which is applied directly to their tax returns. To put it simply, if you spend $20,000 on installing a photovoltaic system, you could expect to receive a credit of $6,000 on your upcoming tax return. However, remember that you'll need to make the initial investment out of your pocket before you can claim this benefit.

Next on the list is the net metering scheme. Although not mandatory for Michigan providers, a lot of them choose to offer this program due to its mutual benefits. Net metering essentially allows homeowners who generate excess energy from their panels to use this surplus as a credit towards their next electricity bill. This serves as an excellent incentive to maximize power production.

Additional relief is available with the Michigan Residential Property Tax Exemption. Installing a photovoltaic system can often lead to an increase in property taxes. However, with this particular exemption, you can upgrade your home with solar without fretting over a potential tax hike.

Financing can also be made more manageable with the Michigan Saves loan program. This initiative helps homeowners to secure loans for their home energy upgrades and installations. The loans can range anywhere from $1,000 to a substantial $50,000, with repayment terms that can stretch up to ten years.

Lastly, if your location is Lansing, there's an additional cherry on top! The Lansing Board of Water & Light offers residential energy efficiency rebates for homeowners who make their dwellings more energy-efficient. The size of these rebates can vary depending on the type and size of the system you choose to install, currently pegged at $500 per kilowatt for a maximum of 4 kilowatts.

Meet Top PV Panel Installers in Michigan

Solar Panel Installation in Michigan 2014-2023
Solar Panel Installation in Michigan 2014-2023
  • Michigan Solar Solutions: Known for its customer-centric services, Michigan Solar Solutions is a locally owned and operated company that offers a diverse range of panel brands catering to different budgets and preferences. This makes it an ideal choice for customers who may be unsure about prioritizing either cost-effectiveness or higher system output. The company's highly knowledgeable technicians can help you make the right decision based on your specific needs. Moreover, they can assist you in uncovering local incentives that can reduce the overall cost of your installation. However, it's important to be aware that Michigan Solar Solutions provides a labor warranty of only five years, which is shorter than the industry average. Additionally, they currently accept payments exclusively in cash and loans, which could present limitations for certain customers.
  • Windfree Solar: For more than ten years, Windfree has been a vital part of the local PV installation industry, focusing on serving Michigan and Illinois. This long-term presence has provided them with extensive experience and a deep understanding of the specific energy needs of these areas. What sets Windfree apart from others is their ability to customize systems using any tier-one monocrystalline brand, a level of flexibility rarely found in the industry. However, it's crucial to note that their services are limited to these two states, and they exclusively prefer cash payments and loans.
  • Stellar Solar: Stellar Solar has an extensive 25-year history of installing solar panels in Michigan and California, making them the go-to local experts. They excel at installing top-of-the-line Maxeon modules from SunPower, which boast the highest production rates. This is particularly beneficial for regions with fewer sunny days, like Michigan. The flip side to Stellar's exclusive partnership with SunPower is the lack of variety. Customers looking for alternative, possibly more affordable brands may find this limiting.

Use your own personal savings calculation to shop and compare top providers

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The Verdict: Solar Power in Michigan, a Worthwhile Investment?

The idea of solar panels in Michigan is not only feasible but also compellingly attractive when you take into account the state's unique set of circumstances. Despite the upfront costs, which are slightly higher than the national average, the long-term savings, coupled with the available federal and state incentives, make solar energy a smart financial decision. With favorable conditions, the verdict is clear: investing in solar power in Michigan is definitely worthwhile.


Key takeaways

  1. Solar Potential in Michigan: Despite its reputation for cold winters, Michigan receives ample sunlight, making solar photovoltaics (PV) a feasible option. With an average of 4 hours of peak sunlight per day, Michigan has a strong solar infrastructure.
  2. Economic Factors: Solar energy costs in Michigan have fallen by 54% over the past decade, making it more affordable for homeowners. Additionally, the state offers incentives for PV installations, further offsetting initial costs.
  3. Climate Benefits: Michigan's colder climate actually enhances the efficiency of PV systems, prolonging their lifespan and improving their output.
  4. Cost Considerations: The cost per watt for solar energy in Michigan averages $3.50, slightly higher than the national average. However, residents consume less electricity on average, allowing for smaller arrays to compensate.
  5. Incentives and Financing: Michigan offers various incentives, including the Federal Tax Credit, net metering, property tax exemptions, and loan programs like Michigan Saves. These programs help make solar energy more accessible and affordable for homeowners.
  6. Top PV Panel Installers in Michigan: Michigan Solar Solutions, Windfree Solar, and Stellar Solar are reputable installers in the state, offering a range of services and expertise. Each company has its own strengths and considerations to keep in mind.
  7. Verdict: Despite slightly higher upfront costs, investing in solar power in Michigan is a smart financial decision due to long-term savings and available incentives. With favorable conditions and support programs, solar energy in Michigan is definitely worthwhile.
Aug 9, 2023
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