Solar & Net Metering Policy
Net metering is available in Michigan, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Transitioned to a Distributed Generation (DG) inflow/outflow tariff model for new customers. Michigan does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value.
Net Metering Notes
Transitioned to a Distributed Generation (DG) inflow/outflow tariff model for new customers.
Does Michigan have net metering?
Yes. Michigan has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Transitioned to a Distributed Generation (DG) inflow/outflow tariff model for new customers.
What solar tax credits are available in Michigan?
Michigan does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Michigan?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Michigan for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Michigan?
Yes. Michigan offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in Michigan?
Michigan does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does Michigan have an SREC market?
Michigan does not currently have an active SREC market. Solar owners in Michigan cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Michigan?
Statewide utility rebates are not currently available in Michigan. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
Get Solar Quotes for Michigan — Partner Services
Ready to go solar in Michigan? Compare quotes from pre-vetted local installers and maximize your available incentives including the 30% federal ITC.
Sponsored. DataTactic may earn a referral fee from these partners. This does not affect our data or editorial content.
Official Source
Michigan Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.