State solar guide
Michigan has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (statewide range; Detroit area approximately 4.47 peak sun hours per day, lowest in Midwest group) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Michigan replaced traditional net metering with the Distributed Generation (DG) Program under Public Act 235 (2023). For systems 20 kW or smaller, excess solar earns bill credits at approximately 50 percent of the retail rate, averaging $0.06 to $0.14 per kWh depending on utility. This is a net billing model, not full retail net metering. Credits carry forward monthly. Major utilities: DTE Energy, Consumers Energy, Lansing Board of Water and Light (BWL).
DTE Energy and Consumers Energy each set their own export credit rates under PA 235 within the Michigan Public Service Commission framework. The roughly 50 percent of retail export credit means self-consumed solar avoids the full 20 cent rate while exported surplus earns approximately 10 cents. Battery storage is highly recommended to maximize self-consumption. Lansing BWL may offer different terms as a municipal utility; contact BWL directly for current tariff. Source: Michigan PA 235, GreenEnergyCalc Michigan 2026.
Program: Distributed Generation (DG) Program - Michigan PA 235. Last verified: June 2, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Michigan utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Michigan homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| DTE Energy Utility rebate / export credit active - verify current funding availability before relying on incentive | See description (as of 2026-06-02) Solar Currents Program: upfront rebate of $2.40 per watt of installed capacity (e.g., $16,800 for a 7 kW system) plus 20-year production incentive of $0.11 per kWh for all solar generated. Systems must be customer-owned (cash or loan); leases may not qualify. Contact DTE at (313) 235-4786. | DTE Energy customers. Verify eligibility directly with your utility. | Active | DSIRE (opens in new tab) |
| Lansing Board of Water and Light Utility rebate / export credit active - verify current funding with Lansing BWL | See description (as of 2026-06-02) Up to $2,000 ($500 per kW, max 4 kW) for qualifying Lansing BWL residential customers. | Lansing Board of Water and Light customers. Verify eligibility directly with your utility. | Active | DSIRE (opens in new tab) |
| Michigan Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) Michigan exempts solar energy system added value from property tax assessment under the Renewable Energy Property Tax Exemption. | Michigan residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
| Michigan Solar Sales Tax Exemption Sales tax exemption Verify that your specific installation and municipality qualify for the Michigan sales tax exemption. | State sales tax savings on system equipment and installation Solar equipment is exempt from Michigan's 6 percent state sales tax. | Michigan homeowners purchasing qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 2, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real Michigan market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at approximately 7,000 kWh for a 7 kW system at 4.47 peak sun hours. Assumes 75 percent self-consumption at 20.00 cents per kWh full retail value; remaining 25 percent exported at approximately 10 cents per kWh net billing rate. DTE $0.11 per kWh production incentive shown separately, not in annual savings figure above (it would add approximately $770 per year). Federal residential credit: $0 (expired). Figures are illustrative; DTE Solar Currents availability must be confirmed before relying on it. Non-DTE customers should use the without-rebate payback of 12 to 13 years.
Michigan homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Michigan does not have a statewide solar permit fee cap. Permit requirements vary by municipality and county. Detroit, Grand Rapids, Lansing, and Ann Arbor each have separate building departments. Typical residential solar permit approval takes 2 to 6 weeks. SolarAPP+ adoption in Michigan is limited. Contract to energization typically runs 10 to 18 weeks statewide including utility interconnection under PA 235.
PA 235 interconnection application to DTE Energy or Consumers Energy is separate from the building permit. DTE interconnection queue times vary; verify current timeline with your installer before signing. Utility approval is required before energization.
Commercial solar in Michigan
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Michigan business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
Get a Free Michigan Commercial AssessmentGet accurate solar numbers for your Michigan home.
We run the math for your specific utility, your net-metering rate, and the 2026 incentives that apply to your address. No federal residential credit assumed. No pressure.
Frequently asked
Every answer is specific to Michigan: your utility rules, your incentives, your net-metering regime. No generic boilerplate.
More state guides
A free in-home assessment runs the real numbers for your utility rate, your net-metering rate, and the 2026 incentives that apply to your address. No federal residential credit assumed. No pressure.
