Wednesday, September 21, 2022

Are Solar Panels Worth It In Michigan

Michigan Saves Home Energy Loan Program

Continued growth but also contention in Michigan’s rooftop solar industry

This program allows you to take solar loans and other home efficiency and weatherization loans with an APR that ranges from 2.99% to 6.99%. The APR depends on your credit score and you can space out your payments anywhere from 12 months to 10 years. The low APR guarantees that you do not have to overpay for your solar efforts.

Incentives Tax Credits And Rebates For Michigan Solar Panels

Solar energy is growing in popularity in Michigan. Solar panels in Michigan have decreased by 43 percent throughout the past five years. Today, Michigan has approximately 83,000 solar-powered houses. Additionally, solar use is projected to grow substantially throughout the state in the future years.

How Do I Know If Going Solar Is Right For Me

Quality Solar considers the primary customer service to be that of education. Once our customers understand solar as it is applied to their unique situation, they can then make a wise decision to go forward. Please contact us with any questions you may have and we will respond within two business hours.

Savings – Lower electricity bills for the long term.

In most cases we can design a comprehensive energy solution so you can own your own solar system with no money down for equal to or less than what you now pay monthly to your utility.

Security – Protection against rising electricity costs.

Nationally, the average annual escalation rate for electricity is 6% . However, with a solar system you essentially lock-in your energy rate at a considerably lower rate than you now pay your utility provider. Our customers can always predict their energy costs which allows them to focus on the more important parts of life

Sustainability – Clean, sustainable energy.

Fossil fuels are finite and cause harm to the environment, whereas solar power reduces fossil fuel dependence and helps alleviate our global pollution concerns. The Environmental Protection Agency reports the average American exhausts 16,000 lbs of carbon dioxide every year through energy use the equivalent of destroying 24 trees per home

Saleability – How Solar affects the value of your home.

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Michigan Solar Panel Cost

Solar panel costs are measured in how many watts per dollar the system can deliver. On average, a residential solar panel system costs between $3 and $5 per watt. When added up, this leads to an average solar cost of $15,000 to $25,000. Keep in mind, this price is before solar rebates and tax credits are taken into account. And solar panels will eventually pay for themselves through energy cost savings. The average amount of time it takes for a residential solar system to pay for itself is 6 to 9 years.

The cost of solar panels in Michigan has been going down in recent years, but this upfront cost can still be a significant barrier. With rebates, tax credits, and the options for leasing and community solar projects, these costs are becoming increasingly manageable.

Solar Roi Payback Calculator

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Cost of electricity can be obtained from your utility provider. State-by-state averages can be found here.

Your electricity usage is printed on your electric bill. Take your monthly usage and multiply by 12 months, or gather a full years worth of bills from your utility for a more accurate estimate.

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How Will You Pay For Your Solar System

Whether you choose to buy or lease your solar panels will have a major impact on your savings. If you have enough to make a cash purchase, youll save more than with any other option but even with a zero-down solar loan, your savings could still be in the tens of thousands. While solar leases and power purchase agreements require no money down and promise a maintenance-free option, they come with a trade-off: your total savings will typically be just 10 to 30 percent of your utility electricity bill.

How does this play out in the real world? Check out the EnergySage Solar Calculator to see how your long-term savings will differ depending on whether you choose a cash purchase, a solar loan, or a solar lease or community solar, if thats something youre considering!

Comparing Michigan Solar Panel Options

The chart below gives you an idea of the costs and returns for each solar option available to Michigan residents purchase, purchase with credit, and solar leasing.

A cash purchase always delivers the most immediate, largest savings. With no loan payments, you realize 100% of the energy savings immediately, along with the Federal 30% tax credit.

Considering an average installation price of $20,000 for a 5kW system, you will see an immediate return of $6000 and an estimated first-year savings of around $760 in energy costs.

Taking into account expected energy price inflation, your yearly savings should be an estimated $1300 within 15 years. This should completely pay for the system within 15 years, but you still own the added value of the system to your property, and you are supporting local jobs and the environment too!

Years ago, the only way to buy home solar was to pay cash. As the lifetime of the system has gotten longer and the efficiency has grown, you no longer have to lay down $20,000 cash to buy your solar system. In fact, as a return on cash invested, financing is actually more sensible than paying cash.

Low interest rates along with the Federal tax credit give solar financing the largest actual returns. You get all of the benefits of solar, without any cash out of your pocket!

If you would like a custom quote based on your energy use, .

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The Verdict: Is Solar Worth It

So, to answer the question, are solar panels worth it? In most cases, yes especially if you can connect to the grid and reduce the burden of energy storage costs, or if you need to provide power in a remote location.

DIY grid-tied systems pay for themselves in about 5 years on average, and contractors extend that window to 8 to 10 years. Considering panels are warrantied for 25 years, both options become a profitable investment in the long run.

Off-grid considerations are slightly different. Batteries add a significant up-front cost, and they will also need to be replaced over the life of the system. But it allows you to buy affordable, rural land and produce clean power where you need it.

System costs must be evaluated against other means of delivering energy to the property. Running power lines to your property can cost an estimated $20,000 for a half-mile run. Though battery storage is expensive, it may still be cheaper than the alternatives.

Can I Get Free Solar Panels In Michigan

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While Michigan does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.

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Pros And Cons Of Solar Roofing In Michigan

Installing solar roofing in Michigan has many advantages and few drawbacks, but its important to have a clear picture before investing in new roofing and energy technology. Lets look at a few of the perks of going solar as well as some flaws that currently exist in the incentives package.

How Many Solar Panels Do I Need

Assuming you want to power your home year-round with solar energy, youll need a solar array that offers production equal to at least your homes annual solar consumption. As weve already discussed, we can expect seasonal differences in power production. We can also expect differences based on factors outside of your control, like inclement weather.

That means its usually best to overshoot your power consumption a little bit and produce more power than you can consume. If your region has net-metering systems, the excess energy you generate is credited back to your account.

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Michigan Property Tax Exemption

Its a roller coaster ride over the past decade when we discuss Michigans solar property tax exemption. For many years in solar installation, theres a tax exemption but went away under former Governor Rick Snyder in 2013.

Thanks to Gov. Gretchen Whitmer, who signed the bill to re-establish the property tax exemption for solar again in 2019. What does that mean? It means that taxing your home for property taxes will not include the tens of thousands of dollars value of your solar panels installed on your property.

Cost Of Solar Panels In Michigan Center Mi

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The figures below show the total cost of solar power in Michigan Center and the estimated payback or break-even period. The numbers below assumes you want to buy the system outright. You can also get a loan, lease the system, or set up a power purchase agreement . Learn more about payment options.

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What Is The Solar Power Installation Process In Michigan

The solar PV system installation process in Michigan is simplified thanks to the favorable interconnection framework which sets equal rules across the board regardless of the utility company.

Anyway, we recommend you hire experts in order to make the process as fast and smooth as possible, while making sure you get top quality workmanship.

If you have already taken the decision to go solar, the process to follow is very simple and you can start right away:

1. Fill our , providing basic information about your property.

2. Talk with trusted solar contractors near you to get detailed quotes.

3. Compare quotes and choose the best option for you. We recommend you get at least three.

4. Have your contractor install the PV system, and enjoy clean power while helping the planet.

The installation process only takes from three to four days after you sign the agreement.

Remember the case study in this article is for a 5-kilowatt PV system, assuming the average sunlight conditions of Michigan.

Once you get a proposal from your contractor of choice, you will know exactly what to expect.

Myth: My Home Is Too Small For Solar Panels

At POWERHOME SOLAR, your consultant will analyze your roof and shading as well as current electric bills and see what size system makes sense for you. Then, well build a custom proposal for you based solely on your individual criteria. Even small homes can house a solar panel array. Just check out our gallery to see how weve made solar work for Michigan homes.

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Shining A Light On The True Value Of Solar Power

Value estimations for grid-tied photovoltaic systems prove solar panels are beneficial for utility companies and consumers alike.

Beyond the environmental benefits and lower electric bills, it turns out installing solar panels on your house actually benefits your whole community.

For years some utility companies have worried that solar panels drive up electric costs for people without panels. Joshua Pearce, Richard Witte Endowed Professor ofMaterials Science and Engineering and professor of electrical and computer engineering at Michigan Technological University, has shown the opposite is true grid-tied solar photovoltaic owners are actually subsidizing their non-PV neighbors.

Most PV systems are grid-tied and convert sunlight directly into electricity that is either used on-site or fed back into the grid. At night or on cloudy days, PV-owning customers use grid-sourced electricity so no batteries are needed.

How To Buy Solar Panels In Michigan

Solar Panels for Home – Still Worth it 2 Years Later?

Theres a lot to consider if you plan to buy solar panels for your home. Its critical that you research solar providers to find the best one for you and learn about whether solar panels are really right for your home.

First, its important to consider the setup and location of your roof. Its no surprise that solar panels are most effective in areas that get a lot of sunshine. If your roof doesnt get much sunlight, then solar panels may not work. Panels are also best on homes with south-facing roofs with 15-40 degree slopes. And make sure your roof is in good condition since solar panels arent ideal for older roofs and those in poor health.

You should also look into any neighborhood rules that govern you. Some homeowners associations have restrictions around the use of solar panels or require approval before you install them. The last thing you want is to pay a lot of money for your panels and then find out you broke an HOA rule.

There are also solar leases to consider, which are an alternative to purchasing solar panels. If you opt for a solar lease, you will not save as much in the long run as you would if you purchased the panels upfront. There are many pros and cons to solar leases, but they are available for those who cannot afford to buy a solar system.

Luckily, Choose Energy has plenty of resources to learn about the pros and cons of solar energy and decide whether its right for you. Use our expertly-written guides to navigate the solar energy industry.

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Michigan Sales Tax Exemption For Energy

Michigan does not offer sales tax exemptions. A sales tax exemption means that homeowners and businesses would not have to pay any state sales tax on their solar panel system. Combine the falling costs of solar equipment and installation, higher electric rates, and the 30% Federal tax rebate and you have good reasons to go solar in Michigan!

Are There Disadvantages To Using Solar Energy In Michigan

Solar panels can be extremely cost-effective, but there are some downsides to consider. First, solar panels are very expensive. Luckily, you can reduce your costs by taking advantage of solar tax credits and incentives. Another downside is that in areas without a lot of sunlight, solar panels wont save you as much money because they wont generate as much electricity. Familiarize yourself with all of the pros and cons of solar panels before signing a solar contract.

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Federal Solar Investment Tax Credit

The Federal Solar Investment Tax Credit offers tax breaks for those who would like to part with their electricity rates by installing a solar PV system. The federal ITC will then give back as much as 26% of your initial costs back. This generous offer is available through 2021 and 2022.

In 2023, the tax credits drop down to 22% and from 2024 onwards they will not be available for residential solar projects any more. Large-scale projects, such as utility-scale solar PV can keep counting on 10% Federal ITC in 2024. Solar panel installation is likely to keep being one of the favorite investments in Michigan as the price of solar PV is expected to decline even further.

The federal tax credit only makes sense if you make enough money to be eligible to pay federal taxes. The incentive can be taken as a means of taxes owed deduction or as a tax return if your employer deducts taxes from your paycheck. You can roll over the remaining tax credit or tax return for up to 10 years.

Solar Roofing Requires Investment

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While solar energy can offer significant savings in the long run, it does require an initial investment. Dont let upfront costs deter you from seeking clean energy, however. There are solar loans, power purchase agreements, and other creative financing options that allow you to start reaping the benefits early and avoid spending a chunk of change from the get-go. Some loan options are even cheaper than buying solar with cash because the savings build up immediately and go toward future payments.

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Michigan State Energy Rebates

Solar power rebates are incentives federal or state governments offer to reduce the cost of going solar. Michigan does not offer state energy rebates. You can get a lump sum payment or your installer will take the amount off the final installed price. Rebates require paperwork to be filed. Our installers will handle the paperwork. Talk with an expert solar installer to see how to qualify. And don’t forget, the Federal rebate for installed solar systems is 30%.

Is Solar Power Worth It In Michigan

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