The Complete Guide to Michigan Solar Incentives
Considering solar panels in Michigan? With more than 250+ sunny days per year and some of the top solar incentives in the US. Its no wonder why so many are switching to solar in The Great Lakes State!
In this article we'll explain the top solar incentives & local programs available to Michigan home & business owners.
Read on to learn more or enter your zip code below to see exactly which solar incentives & programs your home qualifies for!
Enter your zip code to see which Michigan Solar Incentives you qualify for!
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What Are Michigan Solar Incentives?
Solar incentives in Michigan are government programs, policies, or financial incentives that encourage the adoption of solar energy systems. These incentives aim to make solar installations more affordable and accessible for homeowners and businesses. They can include tax credits, rebates, grants, and net metering programs. Certain solar programs in Michigan even offer free solar panel installations! Learn more.
By taking advantage of these incentives, residents and businesses in Michigan can significantly reduce the upfront costs and enjoy greater financial benefits from going solar.
Federal Solar Investment Tax Credit (ITC)
The Federal Investment Tax Credit (ITC), also know as the Green Energy Tax Credit, is a financial incentive available to homeowners and businesses in Michigan who install solar energy systems. The ITC allows eligible individuals or entities to claim a 30% tax credit of the total cost of their solar installation, including equipment and installation expenses. This credit directly reduces the federal income taxes owed, resulting in substantial savings.
However, it's important to note that the ITC is subject to gradual phasing down and is currently set at 30% through the end of 2032.
Solar Net Energy Metering (NEM)
In Michigan, solar net metering is a billing arrangement that allows solar system owners to receive credits for the excess electricity they generate and feed back into the grid. When a solar system produces more electricity than is being used on-site, the surplus is sent to the utility grid, and the owner is credited for that excess energy. These credits can be used to offset future electricity bills when the solar system is not generating enough electricity, such as during nighttime or cloudy days.
By taking advantage of net metering, solar owners in Michigan can effectively reduce their electricity costs and potentially earn credits that can be applied towards future bills, effectively making some extra money with their excess energy. It provides an incentive for solar system owners to generate clean energy and contribute to the grid.
Solar Property Tax Exemptions
In Michigan, the solar property tax exemption prevents an increase in property taxes due to the installation of a solar system. Despite the significant upgrade to your home's value, the assessed value remains unaffected, ensuring that property taxes remain at the same level. This exemption helps solar system owners avoid additional tax burdens and promotes the adoption of solar energy by eliminating the potential financial deterrent of increased property taxes.
Enter your zip code to see which Michigan Solar Incentives you qualify for!
Do I Qualify?
Please enter a zip code
Michigan Solar Programs
Michigan is home to remarkable solar programs and initiatives that highlight the state's dedication to sustainable practices. These initiatives, championed by grassroots organizations and non-profit endeavors, showcase the proactive measures taken by Michigan communities to encourage the adoption of solar energy. By making solar power more accessible and affordable through these programs, Michigan is actively contributing to a greener and more sustainable future for the state.
The Clean Energy for Low-Income Communities Accelerator (CELICA)
The Clean Energy for Low-Income Communities Accelerator (CELICA) was a partnership between the U.S. Department of Energy (DOE) and state/local governments aimed at reducing energy costs for low-income communities. Its objective was to address energy challenges faced by low-income households and showcase locally tailored energy efficiency and renewable energy solutions. Low-income households typically spend around 8% of their income on energy expenses, which is three times higher than non-low-income households. Through CELICA, partners committed $335 million to assist 155,000 low-income households in accessing the benefits of energy efficiency and renewable energy.
The Michigan Saves Home Energy Loan Program
The Michigan Saves Home Energy Loan Program provides homeowners with the opportunity to enhance their home's energy efficiency through low-interest loans. With APRs as low as 4.99% based on credit score, this program offers favorable financing options. The loan term spans from 12 months to 10 years, ensuring flexibility in repayment, and the maximum APR is set at 7.90%. This program presents an excellent and affordable pathway for homeowners to invest in solar systems and make convenient payments over time.
Michigan Solar Rebates
The Lansing Board of Water & Light offers residential energy efficiency rebates in Lansing, Michigan. The rebate amount is dependent on the type and size of the energy-efficient system being installed. Currently, homeowners can receive a rebate of $500 per kilowatt (kW) with a maximum of 4 kW. When combined with the federal tax rebate and the Michigan Saves Home Energy Loan Program, these rebates can result in significant savings for homeowners.
Enter your zip code below to see which Michigan Solar Programs you qualify for!
Do I Qualify?
Please enter a zip code
Going Solar in Michigan
Michigan offers a promising environment for the adoption of solar energy, benefiting from its favorable climate and abundant sunlight. Embracing solar power empowers residents and businesses in Michigan to reduce their reliance on conventional energy sources, leading to significant savings on electricity expenses and a more eco-friendly impact. With a range of solar incentives, programs, and financing options available, going solar in Michigan is a financially advantageous and environmentally conscious choice that paves the way for a brighter and more sustainable future in the state.
Start the switch to solar today and explore all of your solar options with a Solar Savings Quote from EcoGen America, Michigan's most trusted solar company.
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