State Banner

Discover the Power of Solar Energy in Michigan!

Welcome to Michigan, a state known for its Great Lakes, lush forests, and now, its budding interest in renewable energy. Despite its northern location, Michigan enjoys a favorable amount of sunlight throughout the year, especially in the warmer months, making it a promising area for solar power development. This potential provides an excellent opportunity for homeowners and businesses to explore the benefits of clean, renewable energy, aligning with the state?s commitment to reducing carbon emissions and fostering sustainability. Supported by beneficial incentives designed to lower the initial costs of adopting solar technology and a community ethos that prioritizes environmental preservation, Michigan is on a path to becoming a leader in solar energy. Learn how tapping into Michigan?s solar capacity can illuminate your home, decrease energy expenses, and contribute to a healthier environment in the Wolverine State. Join us in harnessing the sun?s boundless energy and stepping into a brighter, more sustainable future in Michigan.

Solar State Incentives

Michigan State Solar Incentives

Net Metering
Michigan's new DG rules cap capacity at 10% of average in-state peak load, with 50% available for projects between 20 kW and 550 kW. Existing net metering service continues under old tariffs for 10 years.
Lean and Green Michigan PACE
Property-Assessed Clean Energy (PACE) financing allows property owners to fund energy improvements with no upfront costs, repaid via a special assessment on the property over years.
Lansing Board of Water & Light - Residential Energy Efficiency Rebates
BWL offers energy efficiency rebate programs for residential customers, including appliance recycling, solar installations, and more.
Michigan Saves - Business Energy Financing
Michigan Saves Financing offers financial support for energy-efficient upgrades through a lender network. Commercial customers can access minimum financing of $5,000 at 6.99% APR.
Michigan Saves - Home Energy Loan Program
Michigan Saves offers financial support for energy-efficient home upgrades with loans ranging from $1,000-$50,000 at rates between 4.44%-7.90% APR.
Michigan Local PACE Program
Michigan’s PACE program allows property owners to borrow money for energy improvements, repaid through a special property assessment. Legislation also covers environmental hazard mitigation projects.
Renewable Energy Renaissance Zones
Michigan's Renewable Energy Renaissance Zones offer tax benefits to renewable energy facilities for up to 15 years, promoting local economic growth and job creation.
Renewable Energy Standard
Michigan's Public Act 235 establishes renewable energy requirements of 50% by 2030 and 60% by 2035, and clean energy requirements of 80% by 2035 and 100% by 2040.
City of Grand Rapids - Green Power Purchasing Policy
Grand Rapids aims to increase its renewable energy usage to 100% by 2025, focusing on reducing carbon emissions, enhancing public transit, and implementing new mobility programs.
City of Grand Rapids - Green Building Requirements for Municipal Buildings
Grand Rapids implements stringent sustainability policies for public buildings, with emissions reduction and 100% renewable energy goals set for 2025-2040.
City of Lansing - Green Power Purchasing Policy
Lansing facilities to buy 10% of their energy from renewable sources by 2010, increasing to 20% by 2020. Aim to reduce city energy use by 10% and purchase EPA ENERGY STAR appliances.
City of Ann Arbor - Green Power Purchasing
Ann Arbor plans to power its electrical grid with 100% renewable energy to reduce greenhouse gases by 41% via community choice aggregation and solar projects.
Low-Income and Energy Efficiency Fund (LIEEF)
Michigan's Low-Income and Energy Efficiency Fund (LIEEF) helps reduce energy costs for low-income customers, promotes energy efficiency, and funds energy projects. It's not available directly to homeowners.
Energy Efficiency in State Buildings
Michigan Governor Gretchen Whitmer issues directive for state-owned buildings to reduce emissions and energy use, aiming to be carbon neutral by 2040.
Interconnection Standards
Michigan updated its interconnection rules for distributed generation in 2009, improving customer protections and detailing interconnection categories based on system capacity.
Refundable Payroll Tax Credit
Public Act 38 of 2011 replaced Michigan Business Tax with Corporate Income Tax, but allowed certain credits to be retained. NextEnergy Zone businesses may claim certain credits for alternative energy research.
Alternative-Energy Personal Property Tax Exemption
Michigan HB 4465 reinstates property tax exemption for alternative energy systems, including vehicles and technology businesses, but excludes homeowners.
Solar Contractor Licensing
Michigan offers a solar heating contractor specialty license to those with 3+ years of solar installation experience. No equivalent exists for solar-electric installers.
Nonrefundable Business Activity Tax Credit
Act 90 of 2019 repealed a program that allowed businesses in Michigan to claim tax credits for alternative energy research and development.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.