Solar energy is gaining momentum in Michigan, with more homeowners recognizing the potential for long-term savings and environmental benefits. In fact, the Great Lakes State has seen a surge in solar installations, with projects like the 333.8MW Assembly Solar coming online in 2021, providing clean energy to over 54,000 residents. As the industry continues to grow, it‘s essential for homeowners to understand the costs, savings, and incentives associated with installing solar panels in Michigan.
The Average Cost of Solar Panels in Michigan
When considering solar panels for your home, the first question that likely comes to mind is, "How much will it cost?" In Michigan, the average cost of solar panels is around $2.66 per watt, which falls in the middle of the national range. For a typical 6kW system, homeowners can expect to pay about $15,960 before applying any incentives.
While this may seem like a significant investment, it‘s essential to consider the long-term savings potential. Michigan residents pay some of the highest electricity rates in the country, with an average monthly bill of nearly $120. By switching to solar, homeowners can drastically reduce or even eliminate their reliance on traditional electricity, resulting in substantial savings over time.
To make the initial investment more attractive, Michigan homeowners can take advantage of the federal solar tax credit, which offers a 30% return on the cost of equipment, labor, and sales tax. By applying this incentive, the price of a 6kW system drops from $15,960 to $11,172, making solar more accessible for many households.
Right-Sizing Your Solar Panel System
While the 6kW system serves as a useful example, the ideal size for your home will depend on your specific energy needs and available sunlight. On average, Michigan homeowners use about 22.5kWh of electricity per day, which is relatively low compared to other states. With an average peak sun hour of 4.0, a solar panel system would need to produce approximately 5.6kW per hour to meet this demand.
To determine the right system size for your home, divide your daily power usage by the average peak sun hours in your area. You can find the specific peak sun hours for your city using a Michigan sun chart. By tailoring your system to your energy needs and available sunlight, you can ensure optimal performance and maximize your savings.
Factors Affecting Solar Panel Costs in Michigan
In addition to system size, several other factors can influence the cost of solar panels in Michigan. Geographic location plays a significant role, as sunlight availability varies throughout the state. For example, Mackinaw City enjoys an impressive 4.9 peak sun hours, nearly a full hour more than the state average. This increased sunlight can result in higher energy production and potentially lower system costs.
The type of solar panels you choose will also impact your overall expenses. Monocrystalline panels are more efficient but come with a higher price tag, while polycrystalline panels are more affordable but may require a larger system to meet your energy needs. Homeowners in southern Michigan may benefit from the increased efficiency of monocrystalline panels, while those in sunnier areas like Mackinaw City could opt for the cost savings of polycrystalline without sacrificing performance.
Perhaps most importantly, the quality and reputation of your solar installer can significantly affect the long-term success and savings of your investment. With over 80 installation companies operating in Michigan, it‘s crucial to thoroughly research and compare your options before making a decision.
Choosing the Best Solar Installer in Michigan
When selecting a solar installer, look for companies with a proven track record of quality workmanship, top-tier equipment, and comprehensive warranties. Websites like EnergySage, trusted by the U.S. Department of Energy and the Solar Energy Industries Association (SEIA), can help you pre-screen installers based on these critical factors.
One standout installer in Michigan is Strawberry Solar, a Detroit-based company with 13 years of industry experience. Strawberry Solar works closely with local residents and partners with top equipment manufacturers like Tesla, Panasonic, and LG Solar. They are NABCEP-certified and offer a 25-year installation warranty, providing peace of mind for their customers.
On the western side of the state, Helios Solar in Kalamazoo is another reputable option. Although smaller in size, Helios Solar uses an in-house team of technicians and offers quality equipment with proper certifications. However, their workmanship warranty is not as extensive as Strawberry Solar‘s, so it‘s essential to weigh your priorities when making a decision.
Savings Potential for Michigan Homeowners
Despite Michigan‘s notoriously cloudy weather, homeowners can still realize significant savings by switching to solar. By offsetting utility costs with solar energy, residents can recoup the cost of their system and ultimately earn money back from the power they generate.
On average, Michigan residents spend $1,430.16 annually on electricity, or about $119.18 per month. By applying this utility offset to a 6kW solar panel system, homeowners could pay off their investment in approximately 11.2 years. While this payback period is slightly longer than in some sunnier states, the long-term returns are still substantial.
Considering the average lifespan of solar panels in Michigan is 20-25 years, homeowners can expect to see net returns of $12,585 to $19,736 after paying off their system. This significant financial benefit, combined with the environmental impact of reducing carbon emissions, makes solar an attractive option for many Michigan residents.
Incentives and Rebates for Solar Panels in Michigan
Although Michigan‘s state-level support for solar energy is limited compared to some other states, there are still incentives available for homeowners making the switch. The most notable is the federal solar tax credit, which allows residents to deduct 30% of their solar installation costs from their federal income taxes. For a 6kW system, this could result in a price reduction of nearly $5,000.
As the state continues to prioritize renewable energy, there is potential for increased incentives in the future. To stay informed about the latest benefits for solar panels in Michigan, be sure to check out our comprehensive list of incentives and rebates.
The Bottom Line on Solar Panels in Michigan
While Michigan may not have the sunniest reputation, the state‘s high electricity rates and the increasing affordability of solar equipment make it an excellent candidate for solar energy. By carefully considering factors like system size, equipment type, and installer quality, homeowners can maximize their savings and enjoy the long-term benefits of clean, renewable power.
As the solar industry continues to grow in Michigan, there has never been a better time to explore your options and join the countless residents already enjoying the financial and environmental rewards of solar energy.
Frequently Asked Questions
Is solar worth it in Michigan?
Yes, solar panels can be a worthwhile investment for Michigan homeowners. With high electricity rates and adequate sunlight, switching to solar can result in significant long-term savings. Homeowners with a properly sized system could see net returns of $20,000 or more over the life of their panels.
How much does solar cost in Michigan?
On average, solar panels in Michigan cost about $2.66 per watt. For a typical 6kW system, homeowners can expect to pay approximately $15,960 before applying incentives like the federal solar tax credit.
How long does it take for solar panels to pay back in Michigan?
Based on the average annual electricity bill of $1,430.16, Michigan residents could pay off a 6kW solar panel system in about 11.2 years. After this payback period, homeowners can enjoy net savings for the remaining lifespan of their system.
Can you get a federal tax credit for solar panels in Michigan?
Yes, Michigan homeowners are eligible for the federal solar tax credit, which allows them to deduct 30% of their solar installation costs from their federal income taxes. For a 6kW system, this could result in savings of nearly $5,000.
