Is it Worth Installing Solar in Michigan?

The question many have before installing solar for their home or business is if it’s “worth it”, most often the answer is yes. Installing solar can help offset the cost of your energy usage saving you hundreds of dollars per month or even thousands if you’re a business that uses a lot of energy.

Why Michigan homeowners are choosing solar?

Michigan ranks #26 nationally for solar capacity as of 2024, according to the Solar Energy Industries Association (SEIA) with solar installations continuing to rise over the last few years with a 30% jump year-over-year from 2023 to 2024 with many taking advantage of the federal tax credits available to them helping them save thousands of dollars on installation.

Note: This federal tax credit expires on 12/31/2025.

Michigan also has several state-level initiatives and incentives, such as the Michigan Saves program, that aim to make solar more accessible and affordable for homeowners.

Many homeowners in Michigan choose to install solar because of:

• The rising cost of utilities and electric rates.
• Protection from blackouts or power outages with solar battery backups.
• Helping the environment by lowering carbon footprint.
• Increasing the value of their home with solar panels.

What does solar actually cost in Michigan?

The true cost of solar varies based on your specific situation but understanding the key factors can help you plan and budget effectively.

Here are the main factors at play:

1. The overall size of your home and energy usage.
2. The complexity of the roof (flat, large slope, etc.).
3. The chosen equipment quality and how much energy you want to offset (we try to install with at least an 80% offset).
4. The electrical work needed to upgrade to support solar (most electrical panels need to be upgraded).

The other way most solar installers price is by the watt. In Michigan, you can expect to pay between $2.50+ per watt before any incentives meaning an 8 kW system might cost around $25,000 or more depending on some of the items listed above.

How much money can solar actually save you?

You would be surprised at how much money solar panels can save you in utility costs in the long-term. The thing to keep in mind is that installing solar should be viewed as an investment – not a short-term play. You’re investing in your financial future and the longer you have solar installed the more money it saves you in the long run.

Immediate Solar Savings

The immediate savings after installing solar come from having to pay next to nothing on your electric bill depending on how much you chose to offset. Most homeowners will see their electric bill drop by 70-100% depending on how much they have chosen to offset.

Most families go from paying $150-200 per month to only paying the connection fee of ~$10 per month.

Long-Term Solar Savings

The long-term savings from installing solar is where it really shines as once you start to add up the amount of money you’re no longer paying the utility companies over a 10, 20 or even 50 year period it can compound big time.

Example:

Your solar system costs $18,000 after the tax credit. You save $150 per month on electricity ($1,800 per year).

$18,000 ÷ $1,800 = 10 years to pay back

After 10 years, your solar panels produce free electricity for another 15+ years. That’s a lot of money back in your pocket, upwards of $25,000-$30,000 you no longer had to pay for your electricity usage.

Most Michigan homes see payback periods between 6-10 years, depending on their electric usage and system size and the faster you pay off your solar installation the faster you’ll see that compounding effect of not having to pay a utility bill.

The other thing to consider as well is the protection from rising electricity rates. If you’re offsetting 100% of your needs then you will not be impacted by the ~3% increase in rates being charged by electric companies, such as DTE. The ~3% increase each year means that your current $150 payment will be pushing over $200 per month with all of this savings staying with you and not going to the utility companies.

When should you install vs when not to?

Solar works best for Michigan homeowners who have electric bills over $100 per month and roofs that get good sun exposure. If your roof faces south, east, or west and doesn’t have heavy shade from trees or buildings, you’re likely a good candidate.

Solar makes the most financial sense if you’re planning to stay in your home for at least 5 years. This gives you time to see the payback and start enjoying the savings.

On the flip side, solar might not be worth it if your electric bills are already low (under $75 per month), your roof is heavily shaded or faces north, or you’re planning to move within the next couple years. If your roof needs replacement soon or your electrical system needs major upgrades, it’s usually better to handle those projects first, then consider solar.

Why Choose Strawberry Solar