Michigan Solar Panels: Pricing and Incentives
Michigan is one of the best places in the country to start using solar panels to help the environment. To protect the environment and support sustainable economic development and growth, Michigan offers renewable energy and energy efficiency incentive programs for home customers, small and large businesses, and government entities. Going solar in 2022 is critical for reducing carbon emissions and cutting monthly energy expenses by utilizing renewable clean energy from the sun. In addition to the federal ITC, depending on where you reside and who your energy company is, Michigan offers additional incentives for going solar. Solar panel installation in Michigan has various advantages, but it’s critical to understand everything there is to know about solar panels before committing to a company’s services
Despite the fact that California and Florida are frequently cited as the best places to go solar, solar energy in Michigan has a proven track record, despite the state’s weather issues. Solar panels here can withstand a 50mph hail strike and most of them are certified to withstand 140 mph winds (if maintained properly).
Michigan is one of only ten states without a statutory framework governing the installation and usage of solar panels in residential settings, such as condominiums and homeowner organizations. The installation and use of solar panels in Michigan are governed by an association’s declaration of limits, master deed, bylaws, and/or rules and regulations until such legislation is approved in Michigan. While Michigan does not have a state-mandated rebate, manufacturers such as LG provide their own solar subsidies.
The Federal Solar Investment Tax Credit or ITC is a federal policy that supports the use of solar energy in the USA. This policy represents a 26% tax credit claimed against the tax liability for solar systems on residential and commercial properties. Michigan’s average cost of a solar panel installation ranges from $13,302.00 to $17,998.00. The size of a solar panel system has an impact on the cost of installation. Because people might buy the panels wholesale, systems with more capacity can often promise a lower value per watt. You can apply for the ITC credit on your taxes when purchasing solar systems and installing them on your roofs.
The percentage that you can get is the following:
- 26 percent for projects that begin construction in 2021 and 2022,
- 22 percent for projects that begin construction in 2023,
- After 2023, the residential credit drops to zero while the commercial credit drops to a permanent 10 percent.
To apply for this credit you must meet certain criteria, such as:
- The solar PV system is located at your primary or secondary residence in the United States, or for an off-site community solar project, if the electricity generated is credited against, and does not exceed, your home’s electricity consumption,
- You own the solar PV system (i.e., you purchased it with cash or through financing but you are neither leasing nor are in an arrangement to purchase electricity generated by a system you do not own),
- The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.