Michigan · Tax exemption
MI Renewable Energy Property Tax Exemption
Removes a tax burden residential solar owners in Michigan would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Property tax exemption
- 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 Renewable Energy Property Tax Exemption stacks on top of that, on top of any federal credit.
- Property tax e…
- 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 exempts solar energy systems from property tax assessment.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Property tax exemption
- 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 tax exemption 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; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this incentive fits Michigan's solar picture
The MI Renewable Energy Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Michigan's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax exemption. 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 tax exemption 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 Net Metering. 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
- Read how state and federal solar credits work together. Tax-credit 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 Renewable Energy Property Tax Exemption?
How does the MI Renewable Energy Property Tax Exemption work?
Who is eligible for the MI Renewable Energy Property Tax Exemption?
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.