The state of Michigan is home to some of the most stunning lakes and forested wilderness in the United States of America. As a result of their commitment to preserving the state’s natural beauty, many Michigan residents are embracing environmentally friendly practices, including adopting clean, renewable solar energy.
To push this movement forward, there are a number of solar incentives available to Michigan homeowners. These incentives help offset the initial costs of solar equipment and installation of rooftop photovoltaic (PV) systems, making the transition more affordable.
We’ll explore the various solar incentives available to Michigan homeowners, including federal tax credits, state programs, and local initiatives that make adopting solar energy more affordable and accessible.
Federal Residential Clean Energy Tax Credit
The Residential Clean Energy Tax Credit, formerly the Federal Investment Tax Credit (ITC), is a federal incentive which allows homeowners to receive a credit for 30% of the cost of a new solar panel system, including solar batteries. Qualified solar panel system costs include equipment, labor, permitting, and sales tax. If you can’t claim the full credit all at once, it will roll over from year to year until the incentive begins to phase out in 2033.
On average, you can receive around $7,600 with this incentive to offset your solar installation costs, though this can vary depending on the size of your system and whether you opt to include any extra energy storage in your solar array.
Michigan Saves Home Energy Loan Program
Michigan homeowners who are unable to pay cash for their solar panel system are eligible for a low cost loan from Michigan Saves, the nation’s first nonprofit green bank. Michigan Saves is a solar incentive that aims to increase accessibility to sustainable home improvements, including solar PV systems, for a wider range of Michigan residents by offering low-interest loans with rates as low as 6.9% through partnerships with local credit unions.
The program achieves this by working with local credit unions to secure low down payments on loans to cover the costs of solar installations and equipment. Currently, loans are available with rates as low as 6.9%, with loan terms depending on the total cost of the project.
Net Metering Program and Distributed Generation
Net metering is another popular Michigan solar incentive. Michigan’s net metering programs and policies work differently than they do in most other states throughout the country. However, the end result is similar in terms of the average long-term energy savings solar customers can get out of the program.
Through Michigan’s distributed generation program, any excess energy generated by your solar panel system is sent to the utility grid and will earn you energy credits. These credits can offset energy use at night or on cloudy days when you may end up relying more on the utility grid.
This program is one of the most popular Michigan solar incentives, providing residents an average lifetime energy savings ranging from $25,000 to $40,000. For more information on this solar incentive, contact your current energy company to discuss specifics tailored to your home and situation.
Michigan Air Pollution Control Exemption
Michigan offers a property tax exemption for any home or facility dedicated to controlling or disposing of air pollution which would otherwise affect the health of the public. Home solar energy systems qualify under this category, and homeowners who switch to solar become eligible for a 100% property and sales tax exemption on any value added to their home by the addition of the solar system.
This means your property taxes will never be affected by your decision to go solar. You can collect on the increased value with no additional tax penalty if you sell your home in the future. This perk is automatic, so you will automatically start saving on your taxes when you go solar in Michigan. Average savings with this solar incentive add up to over $8,000 throughout the system’s lifespan.
Save More with Blue Raven Solar
As one of the top solar installation providers in the state of Michigan and throughout the country, Blue Raven Solar is an excellent partner in helping you qualify for as many Michigan solar incentives as possible. We’re on a mission to make solar available for homeowners, regardless of energy goals, home size, or budget.
We make installing solar panels on your roof straightforward and hassle-free while also offering a number of payment options, ranging from cash to flexible financing. Our specialized teams will walk you through the process—from designing the optimal rooftop system for your home and energy needs to energization of your solar power system.
While owning your solar panel system typically offers the highest savings and fullest access to available incentives, leasing and PPA opportunities provide alternative ways to benefit from solar power.
Switch to Solar
The state of Michigan offers several solar incentives to help you go solar, showing a dedication to reducing environmental impact and preserving Michigan’s natural beauty. At Blue Raven Solar, we’re here to help you navigate Michigan’s solar incentives and make your transition smooth and efficient.
To learn more about how you can get started, contact us today. Our team of solar experts will provide a free savings estimate to help you evaluate whether solar makes sense for your energy needs, home, lifestyle, and budget.
Sorry, the comment form is closed at this time.