Solar by State / Michigan
Data last verified: August 2026Is Solar Worth It in Michigan in 2026?
The honest answer depends on four numbers that are unique to Michigan: your electricity rate, your solar production, your net metering policy, and your state incentives. Here are the real figures, with sources and dates.
Michigan Solar Snapshot (2026)
| Residential electricity rate | 20.7¢/kWh (EIA, 2026 YTD May) |
| Solar production | ~1180 kWh per kW installed per year (NREL PVWatts v8) |
| Net metering | Net billing (exports below retail) — export ~12¢/kWh |
| State tax credit | None in 2026 |
| Rebates / performance | None |
| SREC market | No active SREC market |
| Property tax exemption | Yes |
| Sales tax exemption | No |
Estimate Your Own Payback in Michigan
The table above is a 6 kW benchmark. Your home is different — use the Solar ROI Calculator with Michigan pre-loaded to get your exact payback, or the 30-second worth-it quiz for a go/no-go verdict.
Michigan FAQ
Does Michigan have a solar tax credit in 2026?
Michigan does not offer a state income tax credit for residential solar in 2026. The federal residential credit (Section 25D) expired Dec 31, 2025 and does not apply to 2026 installations.
What is net metering like in Michigan?
Michigan uses net billing with exports around 12¢/kWh. This means exports are credited below retail, so using or storing your power matters.
Is solar worth it in Michigan after the federal credit ended?
At a typical 2.90/W installed cost and 20.7¢/kWh electricity, a 6 kW system in Michigan has an estimated payback of about 12.9 years (rank #39 of 51 states). That is in the middle of the pack — workable for long-term owners.
Compare Michigan with Another State
See how Michigan stacks up against Utah — or use the state comparison tool for a side-by-side of any two or three states.
Popular guides
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What changed when the federal 25D credit expired.
Read →Solar Panel Cost by State (2026)
How much solar costs in every state this year.
Read →Net Metering vs Net Billing
Why your export credit matters as much as your rate.
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