MichiganSolar Incentives 2026: Tax Credits, Rebates & Net Metering
Michigan homeowners can reduce solar installation costs by up to 30% through state and federal incentives. With average monthly bills of $150 and 4.2 peak sun hours per day, the average MI homeowner saves $32,200 over 25 years.
State Solar Tax Credit
Michigan does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.
Net Metering in Michigan
Michigan requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is a modified rate (typically retail rate minus a small grid utilization fee).
In practice, this means a properly sized Michigan system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under MI net metering rules include DTE Energy, Consumers Energy.
Utility Rebate Programs
2 major utilities operate in Michigan: DTE Energy, Consumers Energy. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Michigan installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
Michigan does not currently offer a property tax exemption for solar. The added home value from a solar installation is generally included in the next assessment cycle.
Michigan does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.
How Michigan Compares to Neighboring States
Compare Michigan's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.