Michigan experiences a diverse climate with approximately 180 sunny days annually, providing a reasonable amount of sunlight for solar energy initiatives. The solar incentive programs in Michigan as stated below are designed to encourage the adoption of solar energy, offering financial benefits to homeowners and businesses that invest in solar power systems.
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Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a significant nationwide incentive that allows Michigan residents to claim a 30% tax credit on the installation costs of solar energy systems. This credit can lead to substantial savings and is a primary driver behind the adoption of solar power in the state.
Michigan Property Tax Exemption
In 2019, Governor Gretchen Whitmer signed a bipartisan bill that reinstated a property tax exemption for renewable energy systems in Michigan. Homeowners with solar won’t have to pay heightened property taxes, despite the increased value of their home.
Distributed Generation and Net Metering in Michigan
Michigan has transitioned from net metering to distributed generation, which many find unfavorable. However, existing net-metering customers were grandfathered in, receiving the net-metering rate for 10 years before they’ll have to switch to distributed generation.
Solar Panel Costs in Michigan
The cost of solar panels in Michigan is influenced by various factors, including system size and installation complexity. While there are no state-specific tax rebate programs, local incentives and federal programs help to keep down the cost of solar panels.
Residential Loan Programs
The Michigan Saves loan program assists homeowners in securing financing ranging from $1,000 to $50,000 for home energy upgrades and installations. The term of this financing can extend as long as ten years.
Rebates from Utility Companies
In Michigan, rebates are administered by WPPI Energy and offered by seven different utility companies in the state. Rebates include $30 per square foot of collector area for solar-thermal systems and $2-$3 per projected annual kWh for photovoltaic systems.
Michigan’s solar incentives, including the Federal Solar Tax Credit, property tax exemption, and financing options, make solar energy systems more accessible and affordable for residents. While the state may not offer as many incentives as others, these programs still provide significant financial benefits to those looking to invest in solar energy.
Further information and programs can be found at the Programs.Dsireusa.org
