Cost of solar panels in Michigan (2025)

How much do solar panels cost in Michigan?

With professional installation, a typical 10-kilowatt residential solar panel system in Michigan costs $31,002. That price drops to $21,702 after the full federal solar investment tax credit (ITC). On the high end, Brenda in Saint Louis, Michigan, told us she spent $52,000 on a system.

The size of your solar panel system is another big factor in your overall solar costs. The average size of solar systems in Michigan is 6.5 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Average solar installation cost by system size in Michigan

Are solar panels worth it in Michigan?

Despite the state's cloudy days and snowy northern climate, solar panels can be worth it in Michigan. But it's important to note the cost-effectiveness of solar panels depends on your household energy needs, the condition of your roof, where you live in Michigan and other factors.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

For instance, George in Port Huron, Michigan, told us the value wasn't what he expected. “I thought I could save more or it would not be as expensive. It will take years to recoup my cost into what I have paid,” he said.

If your house is a good candidate, solar is worth considering if you like the idea of lower monthly utility bills and more energy independence. We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year at your house. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Michigan

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference of solar types comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, but they are expensive. Solar battery costs depend on the storage capacity, life span, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, a stand-alone solar system monitoring system costs $80 to $400.

Size of your system

The size of your system plays a big factor in how much you pay overall. You can easily determine what size system you need. First, find out the amount of electricity you used in the last year in kilowatt-hours (kWh). This information is available through your electric company’s online account dashboard. Then divide your annual kWh by 1,200 to find the system size you need. For example, if your home used 12,000 kWh last year, you would need approximately a 10-kW system.

Condition of your roof

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can. Get your roof inspected, fixed or replaced before you go solar.

Local permits and fees

Permits and interconnection fees, though relatively cheap, are worth mentioning. In most parts of Michigan, the costs associated with permits can range from a few hundred dollars to a few thousand, depending on the specific requirements and regulations of the local jurisdiction. Michigan State University’s Solar Planning and Zoning guide is a helpful resource for more information.

Solar incentives, tax credits and rebates in Michigan

The federal solar investment tax credit (ITC) currently lets eligible homeowners claim a tax credit worth 30% of the total cost to install a solar energy system. However, under the “One Big Beautiful Bill” signed in July 2025, the incentive is now set to expire at the end of the year, much earlier than previously scheduled.

Previously, the credit was set to drop to 26% in 2033 and 22% in 2034, then expire in 2035 — but those future step-downs have been eliminated under the new law. That means you only have until Dec. 31, 2025, to install and pay for a system to receive the 30% credit.

You might still be eligible for other solar incentives in Michigan. For instance, the Lansing Board of Water & Light has a renewable energy initiative. You might also be able to take advantage of solar panel manufacturer rebates. While these may not be specific to Michigan, they can still provide additional savings.

How to pay for solar panels in Michigan

Affordable financing makes the upfront costs of solar more manageable. In an ideal financing scenario, your system generates enough extra power to pay off the loan.

Solar loans and leases

A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. Solar loan terms typically last eight to 20 years.

With the federal tax credit disappearing, leasing solar panels might make more financial sense than buying.

Alternatively, leasing solar panels is a great way to set up a system without the high upfront costs. A solar power purchase agreement (PPA) is similar to leasing. A solar developer buys, installs and maintains solar panels on your property. You buy the power generated by the system on a per kWh basis. It’s a fixed price, and the cents per kWh is usually cheaper than the utility’s rate for the same amount of electricity.

» SOLAR PANELS: Lease vs. buy

Michigan solar financing programs

• Michigan Saves: The nonprofit Michigan Saves has partnered with lenders offering loans up to $100,000 for residents going solar. Rates are typically around 7.5% APR, and terms are available for up to 15 years.
• Lean and Green Michigan: Lean and Green Michigan’s Property Assessed Clean Energy (PACE) program lets commercial, industrial and multifamily property owners finance energy improvements with no upfront costs.

How to save money on solar panels in Michigan

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Michigan:

• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Compare quotes: Get quotes from at least three or four different solar companies in Michigan. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.

» MORE: Why are solar panels so expensive?

Compare solar installation companies in Michigan

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Michigan.

Bottom line

Michigan is overall a great place to go solar. The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Michigan and other states.

Solar costs vs. savings: Michigan and nearby states