To make the most of your investment, consider the available solar incentives that are available—including rebates, tax credits and net metering.
Tax Credits
Michigan residents who purchase solar panels are eligible for the federal solar tax credit, which grants a 30% credit based on the cost of the installed solar panels for the following tax season. This is the most attractive incentive for installing solar in most places—and Michigan is no exception. For example, if your fully activated solar panels cost $20,000 to install in 2024, you can lower your tax bill by $6,000 next spring.
Net Metering
Although not mandated by the state, many utility companies in Michigan support net metering. If yours does, you can earn credits in exchange for excess energy produced by your solar panels. Those credits can be applied to future electricity bills when your solar panels don’t cover your household’s needs and you need to pull from the grid.
Distributed Generation Program
This is Michigan’s scaled-down version of net metering. You sell excess energy generated back to the utility company which turns into credits that pay for the aforementioned power supply portion of the bill.
Other State-Specific Incentives
State-funded Michigan solar incentives are currently limited. The most notable program is the Michigan Saves Home Energy Loan Program, which connects homeowners with lenders who offer low rates for energy-efficient home improvements, including the installation of solar panels. The state also offers a property tax exemption, excusing Michigan homeowners from increases in property tax bills that are solely from increased home values due to solar.
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