Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Utility credits read September 29 to October 1, 2026. Updated October 19, 2026.
A typical Michigan home system is 6.63 kW and costs about $20,487 in cash at $3.09 per watt. Simple payback before incentives is about 14.9 years, both across Michigan and at DTE, the largest utility: power you use saves your full price, about 21.28¢ on average, but power you send out earns an outflow credit, 8.709¢ at DTE off-peak.
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Michigan closed net metering to new systems. Under the Distributed Generation Program, one meter counts power coming in (inflow) and power going out (outflow) separately, and they are worth very different amounts.
| Case | Power used at home | Outflow credits | Yearly saving | Simple payback |
|---|---|---|---|---|
| DTE, 10.81¢ average outflow credit (Rider 18, rate D1.11), 51% used at home | $907 | $464 | $1,372 | 14.9 years |
| Great Lakes Energy, 5.6¢ credit (earlier basis: 21.28¢ state average, 40% used at home, after $199 upkeep) | $745 | $294 | $840 | 24.4 years |
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The DTE figure comes from our per-utility payback file and matches Michigan’s figure across six utilities, 14.9 years. Great Lakes Energy has no figure in that file yet, so its row keeps our earlier basis and is not a like-for-like match.
The name at the top of your electric bill sets the credit for every kWh you send out. The two big utilities follow the state program; co-ops and city utilities write their own terms.
Rider 18 on rate D1.11, from March 5, 2026. Weekdays 3 to 7 p.m.: 14.407¢ June to September, 10.319¢ October to May. Serves Detroit and southeast Michigan.
Next: ask for savings priced at the outflow credit, not your full rate.
Rate RSP, from May 1, 2026, confirmed on the rate sheet October 18, 2026. June to September: 15.1904¢ in on-peak hours (2 to 7 p.m. weekdays), 10.397¢ at other times. The monthly fuel adjustment is added. Serves Grand Rapids, Flint, Kalamazoo and much of the Lower Peninsula.
Next: ask for savings priced at these credits, not your full rate.
Lansing Board of Water & Light credits 7.5¢. Great Lakes Energy credits 5.6¢ for 10 years, on systems up to 20 kW. Other co-ops and city utilities set their own terms.
Next: get the credit, and whether unused credit carries over, in writing.
Utility and plan | When the power goes out | Credit per kWh |
|---|---|---|
DTE, rate D1.11 | Weekdays 3 to 7 p.m., June to September | 14.407¢ |
DTE, rate D1.11 | Weekdays 3 to 7 p.m., October to May | 10.319¢ |
DTE, rate D1.11 | All other hours | 8.709¢ |
Consumers Energy, rate RSP | On-peak hours, June to September | 15.1904¢ |
Consumers Energy, rate RSP | Other hours, June to September | 10.397¢ |
Consumers Energy, rate RSP | October to May | 8.2996¢ |
Lansing BWL | Any time | 7.5¢ |
Great Lakes Energy, Buy-All / Sell-All | All the power you make, 20-year agreement | 6.5¢ |
Great Lakes Energy | Extra power, 10-year agreement, up to 20 kW | 5.6¢ |
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Since February 27, 2024, credits at DTE and Consumers Energy can pay every charge on your bill except securitization charges, a small line that repays utility bonds. Unused credits move to the next month. DTE says its credits do not expire and cannot be cashed out while you stay in the program. A small monthly fuel adjustment (the PSCR factor) raises or lowers each credit.
DTE’s battery rules, dated July 1, 2026, list an export-only mode for a battery that charges only from your panels, but also say every battery must be set so it cannot send power to the grid. Ask DTE in writing whether battery power earns an outflow credit. One sentence in DTE’s tariff still says credits do not pay delivery charges, while its letter to solar customers says they do; if your first solar bill does not match the letter, ask DTE. At Great Lakes Energy the credit lowers the energy charge, not the fixed monthly charge. Indiana Michigan Power, Upper Peninsula Power, Upper Michigan Energy Resources, Alpena Power and Xcel Energy run the same state program, each with its own credit.
Each extra panel past your daytime use sends more power out at the outflow credit. Michigan also caps how big a system on the state program may be.
A system may make no more than 110% of the power you used in the past 12 months, and no more than 550 kW.
At DTE and Consumers Energy, filed with the request to connect, before the install.
First come, first served up to 10% of each utility’s peak load. An October 2025 state report found no utility had reached it.
Homes that joined before it closed keep it for up to 10 years from enrollment: closed May 9, 2019 at DTE, January 1, 2021 at Consumers Energy.
A Consumers Energy system above the size limit goes to the Simple Renewable Program, which pays a flat 6.1¢. At DTE, the first bill on Rider 18 can take one to two billing cycles after final approval.
The September 2026 benchmark, $0.20 above the US average. These are modeled cash prices, not quotes we collected.
| System size | Power made a year | Cash at $3.09 per watt |
|---|---|---|
| 5 kW | 6,600 kWh | $15,450 |
| 6.63 kW (typical) | 8,752 kWh | $20,487 |
| 8 kW | 10,560 kWh | $24,720 |
| 10 kW | 13,200 kWh | $30,900 |
No statewide rebate lowers the price. Michigan helps through your tax assessment, one city utility’s rebate and a nonprofit loan.
The value solar adds stays out of your assessment until you sell. Systems of 150 kW or less that make no more than the home uses. Nothing to file.
$500 per kW, up to $2,000. Board of Water & Light customers only, while money lasts.
Lowest posted rate. $1,000 to $75,000, up to 180 months, through credit unions.
Not for a system you own placed in service after December 31, 2025.
Way to pay | Who owns the panels | Michigan point to check |
|---|---|---|
Cash | You | The property tax rule applies; outside Lansing no rebate lowers the price |
Loan | You | Michigan Saves needs an authorized contractor; compare the financed total with cash |
Lease | The company | The property tax rule covers leased systems too; BWL’s rebate form asks for a purchase invoice |
Swipe the table sideways to see every column.
Michigan incentives guideWhat $0-down solar means in Michigan
An HOA’s standards may not cut a system’s output by more than 10% or add more than $1,000 to its cost (2024 Public Act 68).
Three companies on our Michigan list, A to Z, not ranked. Facts from their own sites and the Michigan licensing registry (LARA), read October 13 and 14, 2026.
None of these three companies buys homeowner leads from EcoGen America. How we make money.
Ask each installer which outflow credit it used, and to size from your last 12 months of use.
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CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyVerified Installer methodology
