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Distributed generation billing

  • Under MCL 460.1177, your utility meter measures the electricity you take from the grid (inflow) and the electricity you send to it (outflow). Your electricity supplier credits you for outflow, and that credit appears on the next bill. It can't exceed the total charges on that bill. Credits you don't use carry forward. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-460-1177 (accessed 2026-10-20)
  • The statute doesn't set the outflow credit rate. Rates come from each utility's tariff approved by the Michigan Public Service Commission, so ask your installer for your utility's current rate.

Little else at the state level

We didn't find a statewide incentive as of October 2026.

A note on the federal tax credit

The federal residential clean energy credit (25D) doesn't apply to expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed. Source: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb (accessed 2026-10-20). This page isn't tax advice.

Is solar worth it in Michigan?

It depends on your bill, roof and utility rules. Here is an estimate for a home with a $150 monthly electric bill and a south-facing, unshaded roof, before any incentives:

  • Residential electricity averaged an estimated 21.53¢/kWh in Michigan (January–July 2026), above the U.S. average of 18.19¢ (13 of 51, highest first). Source: EIA Electric Power Monthly, Table 5.6.B (accessed 2026-10-20)
  • Small rooftop systems in Michigan produced an estimated 1,394 kWh per kW of panels in 2024 (2024 small-scale solar generation divided by average 2023–2024 small-scale capacity). Source: EIA Electric Power Annual 2024, Tables 3.21 and 4.7.B (accessed 2026-10-20)
  • Estimated system size: 4.7–6.3 kW, producing about 7,667 kWh a year (estimated).
  • Estimated installed cost: $16,500–$28,600 before incentives, using $3.00–$5.20 per watt. Source: Lawrence Berkeley National Laboratory (2024 installed prices, 20th–80th percentile; accessed 2026-10-20)
  • Estimated simple payback: 9–20 years. Savings depend on how your utility credits exported energy (see above).

Estimates only, based on public data and simple assumptions. Actual production, cost, and savings vary by home, utility, rate plan, and installer. Not a quote, and not a guarantee of savings. Ask your installer about any state, local, or utility incentives that apply. State and local programs: DSIRE.

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