Solar power in Michigan has been growing in recent years due to new technological improvements and a variety of regulatory actions and financial incentives, particularly a 30% federal tax credit, available for any size project. Although among the lowest U.S. states for solar irradiance, Michigan mostly lies farther south than Germany where solar power is heavily deployed. Michigan is expected to use 120 TWh per year in 2030. To reach a 100% solar electrical grid would require 2.4% of Michigan's land area to host 108 GW of installed capacity.
Michigan had over 176 MW of solar capacity in 2019. Solar provided only about 0.25% of all electricity. According to the Michigan Public Service Commission, the state had an estimated 27 MW of solar capacity as of the end of 2014, counting utility and distributed generation.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.