Solar incentives in Michigan
Federal tax credits, Michigan rebates, utility programs, and Distributed Generation Program (inflow/outflow tariff, MPSC-regulated) net metering - everything that lowers your solar payback.
Incentives & rebates
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Federal solar tax credit (Section 25D, ended for 2026 purchases)
The 30 percent federal residential tax credit (Section 25D) applied through December 31, 2025 and is not available for a purchased home system placed in service after that date, so most 2026 homeowner purchases cannot claim it. If you go solar through a lease or a power purchase agreement, the provider may still claim the business version of the credit (Section 48E) and pass part of the value through in your rate. Confirm your eligibility with your installer and a tax advisor.
Michigan Saves Home Energy Financing
Michigan Saves is a nonprofit green bank that connects homeowners with participating credit unions offering below-market financing for qualifying energy improvements, including solar photovoltaic systems, battery storage, and EV chargers. Loan rates start at 6.24 percent APR with terms up to 180 months. You must use an authorized contractor and apply through the Michigan Saves portal. Financing is independent of any tax credit you may qualify for; confirm your eligibility with a tax advisor. Check the Michigan Saves website for current lender rates and contractor eligibility before your project is quoted.
Net metering: Distributed Generation Program (inflow/outflow tariff, MPSC-regulated)
Michigan does not have traditional 1:1 net metering. In 2014 the Michigan Public Service Commission replaced net metering with a Distributed Generation (DG) Program that applies separate rates to what your panels export to the grid (outflow rate) and what you draw from it (inflow rate). DTE Energy and Consumers Energy each administer their own DG tariff under MPSC oversight. The outflow credit rate is typically lower than the retail inflow rate you pay, which means exporting excess power earns less per kilowatt-hour than you pay to buy it back. This is the main reason battery storage pairs well with solar in Michigan: storing daytime surplus for evening use earns you the full retail rate instead of the lower DG export rate. Your installer reviews the current DTE Energy or Consumers Energy DG tariff schedule for your address and models the storage-versus-export tradeoff as part of the quote.
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