Solar Companies in Michigan
3.6 hrs/day
Peak Sun Hours
$0.16/kWh
Electricity Rate
$14,200
Avg. System Cost (6kW)
Michigan's solar resources vary significantly between the sunnier southern lower peninsula and the cloudier upper regions, averaging about 3.6 peak sun hours daily statewide. Despite modest solar irradiance, the Great Lakes State's above-average electricity rates help solar economics.
Michigan transitioned from traditional net metering to a distributed generation tariff in 2018 under Public Act 342. DTE Energy and Consumers Energy, the state's two largest utilities, now offer outflow credits at rates that are typically close to but somewhat below full retail. Michigan does not have a state solar tax credit but does provide property tax exemptions for solar equipment.
Detroit, Grand Rapids, and Ann Arbor lead residential solar adoption. With electricity rates around $0.16/kWh and moderate sunshine, Michigan homeowners can expect payback periods of 9-12 years with the federal tax credit. The state's 2023 clean energy legislation mandating 100% clean energy by 2040 is expected to further boost solar adoption.
Solar Incentives in Michigan
Federal ITC: 30% tax credit on total system cost (through 2032)
Net Metering: Reduced
State Tax Credit: No state-level credit
Michigan replaced net metering with a distributed generation tariff in 2018. Some utilities offer outflow credits close to retail rates.
City-level data for Michigan coming soon. Check back as we expand our directory.