If you’re a Michigan resident, you have quite a few reasons to install solar panels and take charge of your electricity. Frequent power outages, especially when you face extreme temperatures during winter storms or summer months, are enough reasons for switching to solar in Michigan. Been facing these inclement weather conditions? Solar energy can help you become more independent, which is particularly helpful during rough weather.
The Great Lake State has lagged behind during the solar energy boom, but things are looking much better these days. Michigan is now primed for solar growth, thanks to the recent legislative changes and ambitious energy goals. The federal solar tax credit sweetens the deal with a 30% rebate on the cost of solar panels, making now a good time for you to go solar.
If you’re interested in switching to solar, the hardest part might be choosing a solar installer. We’ve compiled a list of national and local solar installers that serve the Great Lake State.
Best national solar companies in Michigan
Palmetto Solar
Best overall
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
Freedom Forever
Best for cash customers
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that’s changing.
Tesla Solar
Most affordable
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.
EnergyPal
Most versatile
EnergyPal is more than just a middleman. It’ll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
Local Michigan solar installers
You don’t have to go with a national installer if you want to go solar. Here are some local companies that might be worth considering.
The Green Panel is one of the few solar companies with brick-and-mortar solar showrooms, with locations in Grand Rapids and Brighton. The Green Panel is an authorized retailer and installer of many leading solar products from Enphase, Panasonic, SolarEdge, Tesla and more. You can purchase your system outright or finance it through a loan. The product warranty will depend on the brand of components you pick for your system.
Michigan Solar Solutions is known for its “cash-back energy guarantee,” which includes free system monitoring by Omnidian for three years. According to their brochure (PDF) “if your system generates less than 95% of forecasted energy, we pay you for annual energy loss even if you experienced a bout of bad weather.” The company also has 4.9 out of 5 stars with GuildQuality, which surveys customers in the home building industry.
Tiger Solar is a regional solar company that serves Idaho, Maryland, Michigan and Virginia. The company promises a “non-pushy” sales force and works with “nonprofits and credit unions whose sole purpose is to connect you with green financing options.”
Solar panels can protect you from Michigan’s frequent outages
Rising electricity rates are reason enough for many homeowners to install solar panels. Michigan’s electricity rates have increased over the years, but frequent power outages are another reason why Michigan homeowners choose to go solar. Michigan suffers from frequent power outages, with the state’s winter storms posing a threat to the reliability of the power grid during periods of extreme temperatures.
“The Michigan grid is in the bottom ten in terms of reliability and performance in the country,” Robin Dutta, a campaign director with Local Solar for All, a clean energy advocacy group, told CNET. “That’s been the last few years fairly consistently.”
How to determine which solar panel installation company is best for you in Michigan
You’ll likely have multiple solar installer options in your area. Which is the best and how can you tell? Every house is a bit different, so every solar installation will be different as well. What you really need is an installer who has experience working with the type of roof you have and the type of system you want installed.
Ben Delman, a communications director with Solar United Neighbors, a clean energy nonprofit, says homeowners should look for solar installers that are certified by NABCEP and have the proper licensing and permits to do their work. Read up on online reviews from as many sources as you can, too. Google and Yelp reviews are a good starting point. Look for solar companies with at least 20 to 30 positive reviews. If you know someone who has solar panels installed on their roof, you can ask them for recommendations too.
Make sure that your installer is getting the best angle and orientation possible for your system, Dutta said.
“You want to make sure that they’re looking at the orientation of your system so that you can maximize the generation of the system,” Dutta said. “So typically that’s a south or southeast facing orientation. And if it’s not, for some reason, make sure they can explain why and why it’s beneficial.”
Make sure you’re familiar with how the federal solar tax credit works. Your solar installer should be able to explain it accurately. If they can’t, that’s a red flag. Your installer should also be able to clearly define how pricing works before beginning the project.
According to Delman and Dutta, a good solar installer should be able to:
- Give good word-of-mouth references.
- Explain the project and working deadlines in detail.
- Clearly lay out the cost of everything beforehand. There shouldn’t be any surprise charges.
- Define technical terms in an easy-to-understand manner.
- Accurately explain how the federal solar tax credit works.
- Design a system that is as efficient and beneficial as possible for your needs.
- Be knowledgeable and transparent about how financing works.
- Have knowledge about the local permit requirements and the process for system interconnection with your local utility company.
- Understand homeowners association restrictions and assist you in navigating that process.
- Answer any question, even the difficult ones.
Read more: Just looking for an emergency backup? Check out the best portable solar panels and solar generators.
Cost of solar panels in Michigan
Here’s a look at the average cash price for a typical solar panel system before factoring in tax credits and incentives, according to data from FindEnergy.com. Your system could cost more if you choose to install a solar battery.
Average cost of solar panels in Michigan
| Typical system size (kW) | Price per watt | Total installed cost | Cost after 30% federal tax credit | |
|---|---|---|---|---|
| Michigan | 6 | $3.94 | $23,640 | $16,548 |
| National average | 8.2 | $3.56 | $29,192 | $20,434 |
Additionally, the graphic below will provide you with some insights on the average total cash price, cost per watt and system size for a solar panel system in different states across the country, according to data from FindEnergy.com. The prices shown don’t account for tax credits, state incentives or any other factors that may change the cost of your solar panel system. Certain states don’t have any FindEnergy solar data and are grayed out on the map.
Michigan solar panel incentives and rebates
The most substantial solar incentive in Michigan is the residential clean energy credit. This federal solar tax credit applies to solar panels purchased between 2022 and 2032 and allows you to claim 30% of the total cost of your system back in tax credits.
Michigan doesn’t offer traditional net metering. Instead, there is a similar program called the Distributed Generation Program. You won’t receive a set compensation rate for any excess solar sent to the power grid.
“The compensation that solar owners get for the excess power that they produce is less than the retail rate of the electricity that they pay for,” Dutta said. “And that has definitely hurt the value proposition for solar in Michigan.”
Michigan solar incentives
How solar-friendly is your state?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here’s how your state scored on CNET’s solar policy test.
Michigan
Grade: F
Incentives available:
- Retail rate net metering
- Solar panel systems fully exempt from property taxes
Strongest scoring categories:
When it comes to the state solar incentives Michigan does have, the state doesn’t skimp on quality. Retail rate net metering and a full exemption from property taxes for solar panel systems are the best versions of those respective incentives.
Categories to improve:
Though Michigan’s current incentives are good, the state just doesn’t have many incentives at the moment. Branching out and nailing down legislation for a sales tax exemption, a state solar tax credit, community solar programs or low-income solar programs would be a good next step in committing to solar-friendly policy.
How to pay for solar panels in Michigan
When it comes to the actual purchase of your solar panel system, you’ve got lots of options. Here are some of the most common.
Cash: Paying cash for your panels is an interest-free way to pay for solar panels, but requires a large amount of upfront capital. If you’re not ready to go solar yet, consider saving some money in a high-yield savings account.
Solar loan: Your installer will likely offer you financing options via a solar loan. These solar loans are an alternative way to buy a solar array and qualify for tax incentives, but you will have to pay interest.
Other financing options: Solar loans from your installer aren’t your only financing option. You could also consider taking out a personal loan through your bank or opening a home equity line of credit.
Solar lease: When you lease a solar system, you don’t own it. Instead, you pay for the use of company-owned solar equipment. Going with a solar lease will save you more money upfront, but less over time. Not every solar company offers solar leases.
Power purchase agreements: When you sign a power purchase agreement, you pay for the electricity generated by a third-party solar panel system to power your home. Certain states don’t offer power purchase agreements.
Installation factors to keep in mind
Besides deciding on your budget, solar installer, purchase and financing method, consider these five aspects of your home when considering residential solar panels.
Own or rent. Homeowners are set up to get the best incentives and return on investment with solar panels. Renters who want to use renewable energy are better off looking into community solar programs.
Roof condition: If your roof needs repairs before solar panel installation, factor that expense into your budget. Make sure your installer advises you on how the size and slope of your roof will affect panel placement and performance. A roof oriented toward the sun with an unobstructed view will generate more electricity.
Location: Some states receive more sunlight than others. Michigan doesn’t get nearly as much sunlight as other states, receiving about only four hours of peak sunlight per day.
Neighborhood and HOA rules: Michigan is the latest state to introduce solar rights laws, which means homeowner associations can’t stop you from installing solar panels on your home. The new law is expected to be ratified shortly.
Homeowners insurance: Consult your home insurance company to ensure a solar system can be covered under your policy.
How we evaluate solar companies
The companies we listed above as “the best” are curated from CNET’s best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we’ve completed a full review on a company or not, it’s always a good idea to get multiple quotes from different installers before choosing a company.
Michigan solar FAQs
Are solar panels in Michigan worth it?
Solar panels in Michigan can be worth investing in if your energy costs are high and your home has the conditions for efficient solar performance. A reliable solar installer can provide you with an estimate of the cost and return on your investment for solar panels. Get three to four quotes from different solar companies to accurately estimate whether solar panels are worth it for your home.
Can I get free solar panels in Michigan?
Completely free solar panels aren’t an option in Michigan. Several federal and state incentives exist that benefit homeowners and businesses when purchasing solar panel systems in the state.
How much do solar panels cost in Michigan?
Paying cash for solar panels in Michigan costs about $19,700 for a 5kW system, according to Find Energy.
