Solar & energy in Michigan

Cold winters but solar works fine. New DG tariff is less generous than old NM.

Avg electricity rate
$0.17/kWh
USA average
Peak sun hours
4.0
Annual average
Net metering
fair
Full retail NM (Distributed Generation)
Solar friendliness
★★★☆☆
Out of 5

Key facts

  • RegionMichigan
  • CountryUSA
  • Average rate$0.17/kWh
  • Peak rate (TOU)$0.24/kWh
  • Off-peak rate (TOU)$0.1/kWh
  • Peak sun hours4.0 hrs/day
  • Net metering policyFull retail NM (Distributed Generation)
  • NM qualityFair
  • Solar friendliness rating★★★/5

Available incentives

  • Property tax exemption

Net metering quality

Quality of net metering policy (higher = better for solar economics):

Fair — Full retail NM (Distributed Generation)

What this means

Fair net metering policies pay less than retail for exports. Consider self-consumption or a battery.

Example: 900 kWh/month household in Michigan

At 4.0 peak sun hours and a 400W panel, you'd need approximately 21 panels (8.4 kW system) to cover your usage. That produces ~10,547 kWh/year, saving about $1,793/year at the 0.17/kWh local rate.

Run the full calculator

Going solar in Michigan

Michigan, in Michigan, USA, has 4.0 average peak sun hours per day — good for solar. The local electricity rate is $0.17/kWh, which is above the USA average.

Net metering in Michigan is rated fair. Full retail NM (Distributed Generation). This significantly affects solar payback: with excellent net metering, every excess kWh you produce is credited at full retail value; with poor net metering, exports may be worth only 10-30% of retail, making battery storage much more attractive.

Available incentives include: Property tax exemption. These can substantially reduce the upfront cost of solar and battery installations. Note: the US federal solar tax credit expired December 31, 2025. State and local incentives still vary by region. South African taxpayers can claim accelerated depreciation under SARS section 12B.

Next steps

Use the Solar Panel Sizing Calculator with 4.0 peak sun hours to find out exactly how many panels you need. Then check the Solar Savings Calculator for a 25-year projection using the local $0.17/kWh rate. If net metering is poor in Michigan, also run the Battery ROI Calculator — batteries may be essential rather than optional.