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.
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.
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.
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.
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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.
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