Michigan solar incentives rarely come as a check. They come as credits on your electric bill. Solar power you use at home saves you the full price of that power. Solar power you send to the grid earns a smaller credit, and your utility sets how many cents that is. Lansing is the one place we found a utility rebate for panels. Pick your utility below to see your numbers.
Recently changed: DTE’s credit amounts changed on March 5, 2026 and Consumers Energy’s on May 1, 2026, after rate cases at the state regulator. Since April 2, 2026, every homeowners’ association must have a written solar policy.
Bill credits, one tax rule, one city rebate: Michigan solar help in 2026
Four things are real and open. Only one pays cash, and only in Lansing.
Program | What you get | How it reaches you | Who can get it |
|---|---|---|---|
A bill credit for extra solar power: 8.709 to 14.407 cents per kWh at DTE, 8.2996 to 15.1904 cents per kWh at Consumers Energy | On your electric bill, each month | Customers of DTE, Consumers Energy and other state-regulated power companies | |
$500 per kW, up to $2,000 | A check to you after the system is approved | Lansing Board of Water & Light customers, while money lasts | |
The value your system adds is left out of your tax assessment until you sell | Nothing to file | Home systems of 150 kW or less that make no more power than the home uses | |
A loan of $1,000 to $75,000, with posted rates from 5.99% | From a credit union | Owners who hire an authorized contractor |
The federal tax credit is $0 for systems switched on after December 31, 2025. There is no statewide Michigan rebate for panels in this table. Before you count on a Michigan income tax credit for solar, ask a tax professional or the Michigan Department of Treasury.
DTE, Consumers Energy, Lansing BWL or Great Lakes Energy: who bills you?
The name is at the top of your electric bill. Open yours to see what your extra solar power earns.
DTE ElectricDetroit and southeast Michigan.Credit for extra power: 8.709 to 14.407 cents per kWh
What you can get with DTE Electric
- Credit for power you send out8.709 cents per kWh
The off-peak credit on DTE’s standard home rate, D1.11 Standard Time of Use. A time-of-use rate charges more at busy hours. Off-peak is every hour outside 3 p.m. to 7 p.m., Monday through Friday. Example: 100 kWh sent out off-peak earn $8.71.
- Credit in the busy hours14.407 cents per kWh
June to September, 3 p.m. to 7 p.m., Monday through Friday. Example: 100 kWh earn $14.41. From October to May the busy-hour credit is 10.319 cents per kWh.
- Power you use at homeWorth more
Each kWh you use yourself also saves the delivery charge of 9.726 cents per kWh. Delivery is the charge for the wires that bring power to you. Example: 100 off-peak kWh cost $18.44 to buy, before small surcharges. Sent out, they earn $8.71.
Your bill credits
DTE’s tariff, its official price sheet, lists a credit for every rate. These amounts took effect on March 5, 2026. A small monthly adjustment for fuel costs (the PSCR factor) raises or lowers them. Other DTE rates have other credits.
DTE’s letter to solar customers says credits can pay all electric charges except securitization charges. A securitization charge is a small line on your bill that repays utility bonds. Unused credits move to the next month and do not expire. You cannot cash them out while you stay in the program.
Watch out: DTE gives no credit for power that a battery sends to the grid. One sentence in DTE’s tariff still says credits do not pay delivery charges. Its customer letter says they do. If your first solar bill does not match the letter, ask DTE.
Also for you: the state rules, property tax and loans.
Consumers EnergyGrand Rapids, Flint, Kalamazoo and much of the Lower Peninsula outside the Detroit area.Credit for extra power: 8.2996 to 15.1904 cents per kWh
What you can get with Consumers Energy
- Credit from October to May8.2996 cents per kWh
On the standard home rate, called RSP, every kWh you send out in these months earns this. Example: 100 kWh earn $8.30.
- Credit from June to September10.397 to 15.1904 cents per kWh
In summer RSP is a time-of-use rate: the price is higher in the busy (on-peak) hours listed on your rate sheet. Power sent out in those hours earns 15.1904 cents per kWh. Example: 100 kWh earn $15.19. At other hours the credit is 10.397 cents per kWh.
- Power you use at homeWorth more
Each kWh you use yourself saves the whole price of that kWh, including the delivery charge for the wires. The credit covers the power supply part and the long-distance lines only.
Your bill credits
These credits are on the Consumers Energy rate sheet in effect since May 1, 2026. A small monthly adjustment for fuel costs (the PSCR factor) is added. Consumers Energy’s site did not open on the day of this update, so ask for the current sheet before you sign.
Since February 27, 2024, credits can pay every charge on your bill except securitization charges, a small line that repays utility bonds. Unused credits carry over to the next month.
Watch out: A system above the state size limit goes to the Simple Renewable Program instead. It pays a flat 6.1 cents per kWh, less than any credit above.
Also for you: the state rules, property tax and loans.
Lansing Board of Water & LightThe city-owned utility for the Lansing area.Rebate up to $2,000. Credit for extra power: 7.5 cents per kWh
What you can get with Lansing Board of Water & Light
- Solar rebate$500 per kW
Up to $2,000, which a 4 kW system reaches. Example: a 3 kW system gets $1,500. A typical 5.62 kW system would come to $2,810, so it gets the maximum. The check goes to you within about four weeks.
- Credit for power you send out7.5 cents per kWh
The Board of Water & Light (BWL) buys your extra solar power at this price. Example: 100 kWh earn $7.50.
Your bill credits
BWL is city-owned, so the state program does not bind it. It sets its own price. Of the 7.5 cents per kWh, 1.3 cents is for your renewable energy credits (RECs): the proof that your power came from solar. Ask BWL if you get that part when you keep your RECs.
BWL’s page does not say if unused credits carry over. Ask before you size your system.
Watch out: The rebate is first come, first served while money lasts. You apply after BWL gives written permission to run the system. The form asks for a purchase invoice, so a leased system may not qualify.
Also for you: the state rules, property tax and loans.
Great Lakes EnergyAn electric co-op in the western and northern Lower Peninsula.Credit for extra power: 5.6 cents per kWh
What you can get with Great Lakes Energy
- Credit for power you send out5.6 cents per kWh
For 10 years, on systems up to 20 kW. Example: 100 kWh earn $5.60. Power you use at home lowers your bill at the full price.
- Sell everything instead6.5 cents per kWh
Under Buy-All / Sell-All, the co-op buys all the power your system makes for 20 years. You buy all the power your home uses at the normal price.
Your bill credits
A co-op is a utility owned by its members, and it sets its own solar terms. The credit lowers the energy charge on your bill, not the fixed monthly charge. Unused credit carries forward. The 5.6 cents per kWh price is a limited offer, first come, first served. The application fee is $100.
Watch out: Size the system for the power you use during the day. Extra power earns little here.
Also for you: the state rules, property tax and loans.
Another utility? Indiana Michigan Power, Upper Peninsula Power, Upper Michigan Energy Resources, Alpena Power and Xcel Energy offer the same state program, each with its own credit per kWh. Other co-ops and city utilities set their own rules. Ask for the credit per kWh in writing, and do not use a DTE example.
Inflow and outflow: what replaced net metering in Michigan?
New systems no longer get net metering. Net metering means your utility counts each kWh you send out against a kWh you buy, at the same price. Michigan replaced it with the Distributed Generation Program, which has two prices. Utilities call power you take from the grid inflow and power you send out outflow.
Your bill has two main parts: power supply (the power itself) and delivery (the wires that bring it to you). Power you take from the grid is billed for both. Power you send out earns a credit for the power supply part only.
So the solar power you use at home, as your panels make it, is worth the most.
- Size limit: your system may make no more than 110% of the electricity you used in the past 12 months, and no more than 550 kW.
- What credits can pay: since February 27, 2024, every charge on the bill except securitization charges, a small line that repays utility bonds.
- Room in the program: first come, first served, up to 10% of each utility’s peak load. The state regulator’s report of October 2025 said no utility had reached it.
- Older systems: homes that joined net metering before it closed keep it for up to 10 years from enrollment. It closed on May 9, 2019 at DTE and on January 1, 2021 at Consumers Energy.
Watch out: A quote that values every kWh at your full rate is wrong in Michigan. Ask how many kWh the model sends to the grid, and at which credit.
Get quotes built on your own utility rate
Your ZIP code starts a quote request with installers who serve your area. Ask each one to size the system to your last 12 months of use.
- DTE and Consumers credit differentlyThe cents per kWh come from your own rate sheet, not a state average.
- Comparing costs nothingRequesting quotes is free, and you never have to sign.
- Shared only with matched installersYour details go to the installers you are matched with.
Michigan property tax: why your assessor leaves solar out until you sell
Solar does not raise your property tax while you own the home. Under MCL 211.27(2)(p), your assessor may not count the value that a home solar system adds until the property is sold. The rule has been in force since November 15, 2019 and has no end date.
Three conditions apply. The property must be residential. The system must be 150 kW or less. And it may not make more power in a year than the home uses, as measured by the utility meter. Owned and leased systems both count, and State Tax Commission guidance includes home batteries.
You do not have to apply. To put the system on record, you can report it to your local assessor on Form 865.
Watch out: This is a delay, not a permanent exemption. After a sale, the assessor may add the system’s value for the new owner. Michigan sales tax on solar equipment is not covered here. Ask your installer to show it as its own line in the quote.
A Michigan Saves loan, and what your HOA can no longer do
Michigan Saves: a loan, not free money
Michigan Saves is a nonprofit that works with Michigan credit unions. It offers fixed-rate loans for solar panels and home batteries: $1,000 to $75,000 at most lenders, up to $100,000 at MSU Federal Credit Union, for up to 180 months. The lowest posted rates ran from 5.99% to 6.99% by lender. Your own rate depends on your credit.
You need a Michigan Saves authorized contractor. There is no penalty for paying the loan off early.
Watch out: A loan adds interest. Compare the total you will pay, not only the monthly amount.
Your HOA cannot ban solar
Since April 2, 2025, a homeowners’ association (HOA) rule that bans solar panels, or has that effect, is void in Michigan. You send the HOA a written application. It must approve or deny it within 30 days. If it does neither, you may install.
An HOA may still set standards. They may not cut your system’s output by more than 10% or add more than $1,000 to the cost. The law also covers solar batteries.
When a Michigan home gets less than the quote shows
- The quote uses one price for all your solar power. Power sent to the grid earns the power supply part only. At DTE that is 8.709 cents per kWh off-peak.
- The system is larger than your past use allows. The limit is 110% of the electricity you used in the past 12 months.
- A co-op or city utility sends your bill. Great Lakes Energy credits 5.6 cents per kWh and Lansing BWL 7.5 cents per kWh. DTE numbers do not apply to you.
- A salesperson says the panels come through MI Solar for All. The state marks that program as paused, after a federal termination letter dated August 7, 2025. It was still paused when we checked.
- Your quote still subtracts a federal tax credit. It is $0 for systems switched on after December 31, 2025. Ask for a new quote.
Michigan solar paperwork, from your last 12 bills to your first credit
- Add up your last 12 months of use. The kWh are on your bills. This sets the largest system you may install.You.
- Apply to your utility before the install. Your installer files the interconnection application, the request to connect your system to the grid, with the program application. The fee is $50 at DTE and Consumers Energy.Your installer.
- Wait for approval before you switch on. The utility sets up a meter that counts power in both directions.Your utility.
- Check your first solar bill. It shows power taken in and power sent out as separate lines. At DTE it can take one to two billing cycles to arrive.You.
- In Lansing, send in the rebate form. Anywhere, you may tell your assessor. The BWL form comes after written permission to run the system. Form 865 for the assessor is optional.You or your installer.
Compare Michigan quotes that show both prices on your meter
Enter your ZIP code to request quotes from installers in your area. Ask each one which credit per kWh it used for the power you send out.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- Free quotes, no obligationYour ZIP code starts a quote request. You decide if you go ahead.
- Home questions firstA few questions about your home come first. Name, email and phone come last.
- Test each quote with this pageA good quote names your utility, your rate and your credit.
More Michigan solar guides
Michigan solar incentive questions
What Solar Incentives Does Michigan Have in 2026?
A bill credit for extra solar power (the Distributed Generation Program), a property tax rule that keeps your system out of your assessment until you sell, Michigan Saves loans, and a rebate of $500 per kW up to $2,000 for Lansing Board of Water & Light customers.
Does Michigan Have a Solar Tax Credit?
The federal credit ended for systems switched on after December 31, 2025. Before you count on a Michigan income tax credit for home solar, ask a tax professional or the Michigan Department of Treasury. The state tax rule that does apply is for property tax: the value a home system of 150 kW or less adds stays out of your assessment until you sell.
How Much Does DTE Pay for Solar Power Sent to the Grid?
On its standard home rate, DTE credits 8.709 cents per kWh in off-peak hours. In the busy hours (3 p.m. to 7 p.m., Monday through Friday) it credits 14.407 cents per kWh from June to September and 10.319 cents per kWh from October to May. A small monthly fuel adjustment is added.
What Does Consumers Energy Credit for Extra Solar Power?
On its standard home rate, 8.2996 cents per kWh from October to May. From June to September, 15.1904 cents per kWh in the busy (on-peak) hours on your rate sheet and 10.397 cents per kWh at other times.
Do Solar Panels Increase Property Taxes in Michigan?
Not while you own the home. The value a home system of 150 kW or less adds is left out of your assessment until the property is sold, if the system makes no more power than the home uses.
Sources (14)
- DTE Electric Rate Book (Rider 18, Sheets D-112.00 to D-116.02; Rate D1.11, Sheet D-14.05): dteenergy.com
- DTE Energy, letter to Rider 18 rooftop solar customers: dteenergy.com
- Consumers Energy Electric Rate Book (Rules C11.2 to C11.4): consumersenergy.com
- Consumers Energy, Simple Renewable Program: consumersenergy.com
- Michigan Public Service Commission, Distributed Generation Program: michigan.gov
- Michigan Compiled Laws 460.1183 (legacy net metering): legislature.mi.gov
- Lansing Board of Water & Light, Install my own solar: lbwl.com
- Great Lakes Energy, Renewable energy: gtlakes.com
- Michigan Compiled Laws 211.27 (property tax): legislature.mi.gov
- Michigan State Tax Commission, Bulletin 6 of 2020, Alternative Energy Systems: michigan.gov
- Michigan Saves, Home Energy Improvements: michigansaves.org
- Michigan Legislature, 2024 Public Act 68 (Homeowners’ Energy Policy Act): legislature.mi.gov
- Michigan EGLE, MI Solar for All: michigan.gov
- IRS, Residential Clean Energy Credit: irs.gov
