MichiganSolar Panel Costs & Savings
Michigan averages 3.6 hrs of peak sun per day with an average payback period of 9.5 years. Homeowners can save $30,600 over 20 years.
Peak Sun Hours
3.6 hrs
per day
6kW System Cost
$19,200
before incentives
Payback Period
9.5 yrs
average
20-Year Savings
$30,600
estimated
Solar Cost Breakdown in Michigan
| Item | Amount |
|---|---|
| 6kW System Cost ($3.2/W) | $19,200 |
| Federal Tax Credit (30%) | -$5,760 |
| Net Cost | $13,440 |
Net Metering
Full Net Metering
Electricity Rate
19.34¢/kWh
Avg Monthly Bill
$126/mo
Solar Incentives in Michigan
Federal Solar Investment Tax Credit (ITC)
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
Solar Potential by ZIP Code in Michigan
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 48001 | Algonac | 3.6 hrs | $1,253 | 10.8 yrs |
| 48104 | Ann Arbor | 3.6 hrs | $1,253 | 10.8 yrs |
| 48201 | Detroit | 3.6 hrs | $1,253 | 10.8 yrs |
| 48301 | Bloomfield Hills | 3.6 hrs | $1,253 | 10.8 yrs |
| 49001 | Kalamazoo | 3.6 hrs | $1,253 | 10.8 yrs |
| 49201 | Jackson | 3.6 hrs | $1,253 | 10.8 yrs |
| 48601 | Saginaw | 3.5 hrs | $1,218 | 11.1 yrs |
| 49501 | Grand Rapids | 3.5 hrs | $1,218 | 11.1 yrs |
| 48701 | Akron | 3.5 hrs | $1,218 | 11.1 yrs |
| 48801 | Alma | 3.5 hrs | $1,218 | 11.1 yrs |
| 48901 | Lansing | 3.5 hrs | $1,218 | 11.1 yrs |
| 49301 | Ada | 3.5 hrs | $1,218 | 11.1 yrs |
| 49801 | Iron Mountain | 3.4 hrs | $1,183 | 11.4 yrs |
Compare With Other States
More Data for Michigan
Frequently Asked Questions
How much do solar panels cost in Michigan?
A typical 6kW solar system in Michigan costs approximately $19,200 before incentives. After the 30% federal tax credit ($5,760), the net cost is approximately $13,440.
How long does solar take to pay for itself in Michigan?
The average solar payback period in Michigan is 9.5 years, slower than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.
Does Michigan have net metering?
Michigan has full net metering. Homeowners receive full retail rate credits for excess solar energy sent to the grid.
How much sun does Michigan get for solar?
Michigan averages 3.6 peak sun hours per day, which is 0.9 hours below the national average. A 6kW system produces approximately 7,884 kWh per year.
Was this data helpful?
Data verified March 2026 · Source: NREL, DSIRE, EIA