Michigan · Net metering
MI Net Metering
Sets the billing terms for excess solar generation sent back to the grid by residential customers in Michigan -- see the credit rate and how it shapes payback below.
- Retail rate credit
- stated benefit
- Residential
- eligible customers
- 14.4 yr
- Michigan baseline payback
- 2
- other Michigan programs
What it means
In Michigan, a 6 kW system already pays back in about 14.4 years on ~$1,226/year of modeled savings, and the MI Net Metering stacks on top of that, on top of any federal credit.
- Retail rate cr…
- stated benefit
- 14.4 yr
- baseline payback (pre-incentive)
- 3
- Michigan programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Michigan utilities offer net metering for residential systems up to 150 kW.
Program at a glance
- Program type
- Net metering
- Eligible customers
- Residential
- Stated benefit
- Retail rate credit
- State electricity rate
- 17.5¢/kWh
- Michigan solar score
- 18/100
How Michigan compares to the U.S. average
Why this incentive matters more (or less) here - Michigan's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Michigan
The market this incentive operates in: total installed solar capacity in Michigan reported to the EIA.
Michigan's solar incentive stack
How this net metering sits among Michigan's 2 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
What this shows Michigan tracks 2 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.
How this incentive fits Michigan's solar picture
The MI Net Metering governs how Michigan credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Retail rate credit. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Michigan averages 4 kWh/m²/day of usable sunlight and residential rates of 17.5¢/kWh, producing an estimated 7,008 kWh/year and $1,226 of annual utility offset on a typical 6 kW system costing $17,700. That baseline already implies a 14.4-year simple payback and a 25-year modeled net of roughly $12,950 before this incentive - every dollar this net metering delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Michigan has 3 solar incentive programs indexed in DSIRE, including adjacent options like MI Renewable Energy Property Tax Exemption. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Michigan's full solar profile, score, irradiance, rates, payback, and every program you can claim. Michigan solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- See how net-metering credits are valued state by state. Net-metering guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Michigan incentives
Frequently asked questions
What is the MI Net Metering?
How does the MI Net Metering work?
Who is eligible for the MI Net Metering?
How does this incentive affect solar ROI in Michigan?
Are there other solar incentives in Michigan?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.