Michigan Solar in 2026: What Homeowners in the Upper Peninsula Need to Know

If you’re thinking about installing solar panels in 2026, now is the time to start
planning, especially if you live in Michigan’s Upper Peninsula. With changing
federal tax incentives and Michigan solar policies are unique. Understanding
your options can make a big difference in your investment.

The 30% Federal Solar Tax Credit—What Happens After 2025

For years, homeowners across Michigan have benefited from the 30% Federal
Solar Tax Credit (also known as the Residential Clean Energy Credit). This
incentive allows you to claim 30% of your solar installation costs, equipment,
labor, and permitting, as a credit on your federal taxes.
However, current guidelines indicate that to receive the full 30% credit, your
system must be installed and placed in service by December 31, 2025.

If your solar installation is completed in 2026, you may not qualify for the full
30%, or the incentive could change under new federal legislation. That’s why
our team at Peninsula Solar recommends starting your solar project early, so
you can lock in the strongest financial benefits available.

Michigan Solar Incentives Still Make It Worthwhile

Even if the federal credit changes, there are still great reasons to go solar in
Michigan in 2026:
● Property Tax Exemption: The added value of solar panels won’t
increase your property taxes.
● Sales Tax Exemption: Most solar equipment in Michigan is exempt from
state sales tax.
● Net Metering and Utility Rebates: Depending on your utility, you can
earn credits for the excess energy your solar panels send back to the
grid.

These local and state-level benefits, combined with Michigan’s rising utility
rates, help ensure that solar remains a smart, long-term investment for
homeowners.

Why Solar Still Pays Off in 2026

Even if federal incentives shift, solar panels continue to offer major long-term
benefits for Michigan homeowners:

● Protection from rising electricity costs
● Lower monthly utility bills
● Increased home value and energy independence
● Reduced carbon footprint

With professional design and installation from Peninsula Solar, you can expect
top-quality components, expert craftsmanship, and decades of clean energy
production, no matter what year you install.

Start Your Michigan Solar Journey with Peninsula Solar

Peninsula Solar is proud to be the only fully licensed solar installer serving
Michigan’s Upper Peninsula. Our team specializes in custom-designed
residential and commercial systems that perform reliably in U.P. weather
conditions.

If you want to take advantage of the 30% federal solar tax credit before the
2025 deadline—or explore your solar options for 2026—contact Peninsula
Solar today for a free consultation