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#26 Solar ROI State

Solar Panel ROI in Michigan (MI)

Michigan averages 1,100 kWh per installed kW per year. At $18.2¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $8,329.

$14,112
System Cost (After Credits)
$8,329
25-Year NPV
10 years
Payback Period
$0.189/kWh
Solar LCOE

Solar Cost Breakdown in Michigan

7 kW system (2.88/W)$20,160
Federal ITC (30%)-$6,048
Net Cost$14,112

Solar Production in Michigan

Michigan receives an average of 1,100 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 7,700 kWh in year one, declining by 0.5% annually due to panel degradation.

At Michigan's average residential rate of $18.2¢/kWh with 4% annual escalation, first-year savings are $1,401. The solar LCOE of $0.189/kWh is -4% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Michigan

1:1 net metering up to system capacity cap per utility (typically 10 kW)

Solar by Utility in Michigan

DTE Energy

Avg Rate: $18.8¢/kWh
Structure: TOU
Peak: $25.8¢/kWh / Off-Peak: $11.8¢/kWh
View analysis ›

Consumers Energy

Avg Rate: $17.8¢/kWh
Structure: FLAT
View analysis ›

Solar FAQ for Michigan

How much does solar cost in Michigan?
A typical 7 kW residential solar system in Michigan costs $20,160 before incentives. After the 30% federal ITC, the net cost drops to $14,112.
What is the solar payback period in Michigan?
Based on the average MI utility rate of $18.2¢/kWh and local solar irradiance of 1,100 kWh/kW/year, a 7 kW system typically pays for itself in 10 years. The 25-year NPV is $8,329.
Does Michigan have net metering?
1:1 net metering up to system capacity cap per utility (typically 10 kW)
What is the LCOE of solar in Michigan?
The levelized cost of solar energy in Michigan is approximately $0.189/kWh, compared to the current average utility rate of $18.2¢/kWh. Solar electricity costs -4% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Michigan?
Michigan receives approximately 1,100 kWh of solar energy per installed kW per year. A 7 kW system produces about 7,700 kWh in its first year, enough to offset 73% of the average U.S. household's electricity consumption.

Compare Options in Michigan

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Solar ROI in Similar States

Texas

NPV: $10,835 · Payback: 9yr
Rate: $13.8¢/kWh · #18 ranked

Pennsylvania

NPV: $7,155 · Payback: 10yr
Rate: $16.2¢/kWh · #19 ranked

North Carolina

NPV: $4,876 · Payback: 11yr
Rate: $12.2¢/kWh · #20 ranked

Utah

NPV: $5,916 · Payback: 11yr
Rate: $11.2¢/kWh · #21 ranked

Iowa

NPV: $9,904 · Payback: 8yr
Rate: $13.8¢/kWh · #22 ranked

Oregon

NPV: $1,513 · Payback: 15yr
Rate: $12.2¢/kWh · #23 ranked

Get Your Michigan Solar Analysis

These are averages. Your ROI depends on your specific utility, consumption, roof, and system size. Run a personalized 25-year NPV analysis — free.

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