State solar incentives

Solar incentives in Michigan you need to know

A good discount can make any purchase much better. Solar panels are no exception – you can save quite a bit by taking advantage of solar incentives in Michigan. And we’ll tell you how.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Sell excess electricity with net metering program

Solar laws in Michigan make net metering programs available to customers of investor-owned utilities and rural electric cooperatives. The program gives households an opportunity to send any excess electricity back to the grid instead of storing it with batteries.

When you sell your solar power to the utility, you receive credits that can be used to offset your next bills. In Michigan, their value is equal to full retail electricity price for the systems with a capacity of 20kW or less. Avoided cost rate is used for larger systems. The credits may be rolled over indefinitely, the companies neither retire nor purchase them.

Also, the utilities may not apply discriminatory rates to net metering customers. In Michigan, companies serving more than 1 million customers are required to supply a compatible meter if requested by a client. Application and interconnection review fees may not exceed $100.

Save up to $1,000 a year trading RECs

Renewable Energy Credits are certificates granted to any person or entity upon generation of each Megawatt-hour of clean electricity. Unlike with net metering, you don’t need to sell any electricity to get credits. The value of RECs is always changing, which makes them similar to stock market assets. Based on the available data, selling RECs could mean anywhere from $300 to $1,000 annually for a 10kW solar system.

To participate, you have to apply for approval from the Michigan Public Service Commission. After that, you can create a REC account with the Michigan Renewable Energy Certification System (MIRECS) to begin tracking and selling your credits. Keep in mind that in Michigan RECs have a lifetime of only three years.

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Michigan

SHOP SOLAR PANELS

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

More articles from this author


Read Also

Mitrex solar panels review 2024: Canadian beauty

Solar incentives in Montana: Full list

Permission to operate: What is PTO for a solar system and how to get it

Solar incentives in Pennsylvania for a smooth solar switch

What is a solar farm and how much money can it make you

Stay tuned

Learn about the latest arrivals and discounts first!

By clicking "Subscribe", I agree by electronic signature to: (1) receive marketing and other texts and messages from A1SolarStore, directly or from third parties acting on its behalf, at the email address I entered above; (2) the Terms and Conditions; and (3) the Privacy Policy.