Michigan · Tax exemption · Mid-stack program
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
Mid-stack program · late directory
Michigan stacks 3 tracked programs; this tax exemption sits beside peer levers on a 14.4-year modeled baseline.
- Stack3 programs
- In-state #2/2
- Type #20/45
- Baseline14.4 yr
In-state directory place #2 of 2 (late alphabet). National tax exemption directory #20 of 45. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
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
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.
Where this tax exemption sits in Michigan's mid-size stack
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.
Other Michigan incentives
Frequently asked questions
What is the MI Renewable Energy Property Tax Exemption among Michigan's mid-size programs?
How does the MI Renewable Energy Property Tax Exemption work?
Who qualifies, and what does a late in-state directory place mean?
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 · Michigan solar data · ROI calculator · All incentives.