Solar in Michigan: cost, payback & incentives

Michigan ranks #46 of 51 with a composite solar score of 18/100 (Marginal). The score blends inputs from NREL and EIA: average irradiance of 4 kWh/m²/day, residential electricity at 17.5¢/kWh, a turnkey 6 kW installed cost of $17,700 ($2.95/W), and 2 tracked state and utility incentive programs.

On those inputs, a 6 kW array here is modeled to generate roughly 7,008 kWh/year and offset about $1,226 in annual utility spending at the state's average rate, an estimated 14.4-year simple payback (#26 of 51 for speed to break-even) and a projected +$12,950 net position over a 25-year horizon before utility-rate escalation.

Policy matters as much as physics. Michigan's net-metering framework is classified as full, which governs how exported generation is credited, and its renewable portfolio standard is: Mandatory (25% by 2035). The 2 active programs tracked in DSIRE include tax exemption and net metering types, each can stack to compress payback. Notable programs include Consumers Energy CleanRate. Note that the 30% federal residential solar tax credit (§25D) ended for systems placed in service after December 31, 2025, so state and utility incentives now carry more of the economics, confirm current federal rules with the IRS and your tax advisor.