Michigan
Michigan solar in 2026
Michigan is not a net-metering state dressed up with a new label. Its Distributed Generation program separates the bill into inflow and outflow. You buy utility power at the full retail rate. You export your surplus for the power-supply component of retail, potentially less transmission costs. With a 22.01-cent statewide residential price, that split makes a thoughtful load profile worth more than an oversized array.
Michigan solar starts with a high retail price, then gets more selective
The retail figure is high enough to make locally used solar valuable. The catch is timing. A production estimate alone does not explain the deal because a kWh used by the refrigerator or heat pump can be worth materially more than a kWh sent out during a low-load hour. That is why batteries, EV charging, and ordinary daytime demand deserve an honest look.
| Energy source | Type | Average price | What that means |
|---|---|---|---|
| Michigan household power | Electricity | 22.01¢ per kWh | Michigan's EIA residential price observation for May 2026. |
| Michigan residential gas | Natural gas | $14.07 per Mcf | EIA's Michigan gas entry for 2026-05, equivalent to near 4.6 cents per thermal kWh. |
| Rooftop electricity you own | Electricity | ~9.5¢ per kWh | A 25-year levelized generation cost calculated from the EnergySage cash-cost input and our PVGIS runs. It does not set the payment for any exported kWh. |
The retail-power entry is from EIA Table 5.6.A, covering May 2026. The gas comparison uses EIA natural gas prices for 2026-05, with 1 Mcf about 304 kWh of thermal energy. See the methodology page for the solar estimate's calculation approach.
The Michigan production spread is manageable
Detroit sits at the upper end of this city sample and Traverse City at the lower end. The difference is real but it does not excuse a hand-wavy quote. Ask for a production model based on your roof, then pressure-test what share will be used in the home versus pushed into the DG outflow bucket.
| Sample city | Per-kW annual generation | 11.9 kW system generation |
|---|---|---|
| Detroit | 1,278.7 | 15,217 kWh |
| Grand Rapids | 1,231.3 | 14,652 kWh |
| Lansing | 1,262.3 | 15,021 kWh |
| Traverse City | 1,198.1 | 14,257 kWh |
PVGIS v5.2 model runs by Solar Learning Lab on August 18, 2026, using the NSRDB radiation database. Assumptions: fixed roof mount, south facing, 30 degree tilt, 14 percent losses. Your roof will differ. PVGIS v5.2.
Michigan DG rewards the kWh you keep
Michigan replaced net metering with its Distributed Generation program. Public Act 235 of 2023 increased the eligible project size to 550 kW and allows generation up to 110% of the prior 12 months' consumption. Following Order U-21767, utilities filed updated DG tariffs that the MPSC approved on March 13, 2025.
The hard part is the inflow and outflow distinction. Utility-delivered kWh are billed at the full retail rate. Exported kWh are credited at the power-supply component of the full retail rate, potentially less transmission costs. Cooperatives are not required by statute to offer the statewide DG program. Get your utility's tariff and do not turn a DG estimate into a retail-net-metering estimate by accident.
| Rule | Threshold or term | What it means |
|---|---|---|
| Eligible DG project | Up to 550 kW | Public Act 235 of 2023 |
| System sizing | Up to 110% of prior 12 months use | State program limit |
| Outflow credit | Power-supply component of retail | Potentially less transmission costs |
Policy source: Michigan Public Service Commission DG program. Get the current inflow and outflow tariff from the utility that serves your address.
For a homeowner, the tariff is the incentive story
| Item | Value | Fine print |
|---|---|---|
| Residential solar credit or rebate | No statewide program confirmed | The state materials reviewed did not confirm a statewide residential solar tax credit or rebate. (Michigan Public Service Commission) |
| Solar Energy Facilities Taxation Act | Not a rooftop incentive | The 20-year ad valorem exemption applies to utility-scale facilities, not residential rooftop solar. (Michigan Treasury) |
| Federal 25D | Ended December 31, 2025 | Providers of leases and PPAs may claim the federal 48E business credit, with some of that value potentially reflected in customer pricing (CRS) |
Do not copy a utility-scale property-tax benefit into a rooftop proposal. Michigan's state research did not confirm a statewide residential rebate or credit. The relevant lever is a better self-consumption profile under the DG tariff.
Michigan's DG record shows why the tariff deserves more attention than a generic rebate claim
The state's reported Distributed Generation footprint is specific enough to be useful. Through 2024, behind-the-meter DG totaled 222.4 MW across 23,910 customers and 24,150 installations. That record appears in the MPSC 2025 Renewable Energy and DG report. The same report puts the prior year at 189.6 MW. A homeowner does not need to turn those statewide figures into a personal forecast, but they are a reminder that tariff terms are a live operating issue, not archival policy.
Utility territory matters. Consumers Energy reported 77,851 kW in DG systems 20 kW and under, plus 41,614 kW in systems from 20 to 550 kW. DTE reported 67,616 kW and 15,563 kW in those categories. Indiana Michigan Power reported 4,831 kW at 20 kW and under and 1,649 kW above that size. Those numbers do not rank installers. They show why a bidder needs to identify the serving utility before describing how inflow and outflow will land on the bill.
The program's start dates also vary by company. The MPSC report lists DTE Electric at 5/9/2019, Indiana Michigan at 2/1/2020, Consumers Energy at 1/1/2021, Alpena Power at 1/1/2022, NSP at 1/1/2023, and UMERC at 1/1/2025. Each is tied to a named cap-approval case. That variation is exactly why a statewide slogan can fail a local project.
One final branch in the decision tree is cooperative service. Cooperatives are not statutorily required to offer Michigan's statewide DG program, although many have voluntary offerings and report data to MPSC staff. Ask for the actual tariff before assuming a DTE or Consumers-style calculation applies. It is a small request that prevents a large modeling error.
Keep two statewide totals distinct when reviewing market claims. Michigan had 1,428.0 MW of solar capacity in 2024 and ranked 27th of 51, while the 222.4 MW DG total refers to the behind-the-meter program record. The distinction does not change a household bill, but it stops a utility-scale statistic from being used as evidence about a particular DG tariff.
Model Michigan with a haircut for exported energy in mind
The calculator gives a straightforward retail-rate screen, which is useful for estimating system size. It cannot identify your DG outflow credit. If you expect regular exports, use your utility tariff and a conservative self-consumption assumption before treating the result as a savings promise.
Slider bounds come from our PVGIS runs across four Michigan cities. Your roof can differ because shade, orientation, and equipment choice matter.
Cash quotes in Michigan cluster near $2.96 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.
Assumptions you can change
Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.
Cash purchase
$15,392 after state credit
- Year 1 benefit
- $119/mo
- Payback
- 10 years
- 20 year net position
- $19,131
No statewide residential solar tax credit or rebate is included. Michigan economics depend on your current rate and the lower-value DG outflow credit for exports.
Solar loan
$194/mo 15 yr payment
- Year 1 net
- -$76/mo
- Upfront
- $0
- 20 year net position
- -$475
We price loans at $4.16 per watt, the EnergySage cash figure plus the $1.20 national loan-over-cash spread LBNL documents.
Lease / PPA
$0 down you buy the power
- Year 1 net
- -$11/mo
- Upfront
- $0
- 20 year net position
- -$1,312
A lease or PPA provider can still claim the federal 48E business credit. Ask how the contract handles the difference between self-consumed and exported production.
Estimates, not quotes. Inputs use Michigan EIA pricing, our PVGIS production runs, and EnergySage cost data. DG export credits are below retail and vary by tariff. We are a solar installer and we also partner with other solar companies. See our disclosures.
Michigan checks that catch weak DG proposals
- Ask your utility for the current DG tariff and identify the outflow credit, not just the retail rate.
- Size from the prior 12 months of consumption and remember the 110% program ceiling.
- If your home is served by a cooperative, confirm its voluntary program terms rather than assuming statewide DG treatment.
- A battery, EV charging, or flexible daytime loads can improve the value of production that would otherwise export below retail.
Michigan installers worth questioning about inflow and outflow
High retail rates attract broad savings claims. The better companies will show their work on the DG tariff and discuss how they size a system around your load. The cards below are not endorsements.
Michigan Solar Solutions
Commerce Township, Michigan
4.8(448 Google reviews)
Oak Electric Service
Waterford Township, Michigan
4.8(2,595 Google reviews)
Streamline Electric
Detroit, Michigan
4.7(346 Google reviews)
The Green Panel
Brighton, Michigan
4.4(134 Google reviews)
Strawberry Solar
Detroit, Michigan
4.7(78 Google reviews)
Ratings and review totals are a Google Maps snapshot from August 2026, via the DataForSEO SERP feed. Zero companies paid us and none are endorsed by us. Confirm the project licensing required by your state and locality before a contract is signed.
Get a Michigan estimate that separates onsite value from exports
Use four quick inputs, grounded in this page's EIA price and PVGIS output context. We are a solar installer and we also partner with other solar companies. More detail is available in our disclosures.
What does your monthly electric bill look like?
Michigan average is $119 per month (EIA, 2024).