Residential Solar Installation In Michigan

Residential Installation on a cliff side home.

Solar energy is the most cost-effective way to power your home, allowing you to produce robust and reliable energy while avoiding rising utility costs.

The average homeowner in Michigan pays nearly $200 per month for their electric bill. You will continue to pay more and more each year as your electric bill will increase by 2-3%, or more, on average each year.

If you bought a house today, you will likely spend almost $100,000 on your electric bill before you even pay off your mortgage.

Save Thousands Over Time

Peninsula Solar can help you save thousands of dollars over time by owning your energy instead of renting it from the utility company.

Let our team give you a free estimate.

Benefits of a Residential Solar System

There are many benefits to installing a solar system on your home, but the most important one is reducing your long-term expenditure on electricity.

By adding solar panels to your home, you can cut your electric costs by up to 100%. This can save you hundreds of dollars per month and thousands over the course of a year or more.

Most residential systems see a return on investment within 10 years. Use the chart to estimate your cost savings by going solar.


*This chart shows the electric bill cost and savings with solar over time. Actual savings will be dependent on the total cost to install the solar system as well as any incentives you may receive.

The other benefits to installing a solar system are:

  • You can earn a substantial tax credit.
  • Your solar system can extend the life of your roof by protecting it from the elements (sun, snow, wind, or rain) and keep your home cooler in the summer by absorbing the heat from the sun.
  • They have very little maintenance aside from making sure they aren't covered by leaves or debris.
  • You will typically see an increase of around 5% to your total home value.

Warranties for Residential Solar Panels

A modern solar panel system that's maintained can provide power for over 25 years without any major maintenance or repairs.

The solar systems we install here at Peninsula Solar all have a 25 to 30-year manufacturer warranty.

Many of the solar systems we install for our customers outlive the warranty because of the quality of our installation and extra care we take with every system.

Home Solar Panel Mounting Locations

A trustworthy solar company will walk you through the best installation options and mounting locations for your home. The two most common solar mounting locations are on your roof or on the ground near your residence.

A solar mounting system, sometimes called a solar racking system, is the component that secures solar panels to your roof or the ground and holds them in place.

Before you install, you should research both types of mounting locations and talk to your solar installer to help make the right decision for your needs.

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Roof Mounted Solar Systems


A roof-mounted system is the most common way many homeowners install solar panels as it's aesthetically pleasing, helps protect your roof, and your roof often gets the most sun throughout the day.

These types of systems are generally maintenance-free, but you may have to brush off some snow periodically if you live in snowier areas.

Ground Mounted Solar Systems

A ground-mounted system is often a good alternative to roof mounting if your roof is too small, has awkward pitches, or is covered mostly in shade throughout the day.

This type of installation can benefit homeowners in that it will give them a lot of flexibility as to where the solar panels are installed. This allows them to have more control over the aesthetics and allows them to place the panels where they can be the most effective.

The biggest advantage to a ground-mounted solar system is that, depending on the installation, the solar panels can adjust their angle throughout the day to capture more sunlight.

Cost to Install a Residential Solar System

The total cost of your solar system will come down to how much electricity you use. The typical Michigan resident will need a 6-12kW solar system.

Before any final quote is given, the team at Peninsula Solar will use solar modeling software to determine the correct system size for your home.

Even though the cost may seem high at first glance, there are major incentives and tax breaks that help lower the initial cost of financing a solar system. When you pair these incentives with the immediate savings on your electric bill, you will find significant long-term savings.

Solar vs. Traditional Energy Cost Comparison Calculator

The total cost of purchasing and installing the solar energy system, including equipment, labor, permits, and any other related expenses.

Taxes & Incentives for a Home Solar System

There are federal and state programs available that can help you pay for your solar system installation. You can currently save 40% off your installation costs by leveraging incentives and tax breaks. These incentives cover most home types, even barndominiums.

Federal Solar Incentives for Residential Installation

The federal residential solar energy credit can be claimed when you file your federal income taxes for a percentage of the cost of a solar system paid for by the taxpayer.

There is no maximum amount of money that can be claimed as it is based on a percentage of your total cost.

The current tax credit for installations from 2023 to 2032 is 40%. This means if your system cost you $30,000, then you would get almost $14,000 back in a tax credit to help pay for it.

You can find more information on receiving this tax credit by going to

IRS form to file with taxes: IRS Form 5695.

Save 30% on Your Installation Costs

You can currently get 30% back as a tax credit when you install a new solar system or expand your current one.

This can save you thousands of dollars on the installation.

Michigan Solar Incentives for Residential Installation

Michigan falls short on incentives to install a residential solar system compared to other states, but they do still have some benefits:

  • Solar Renewable Energy Certificates (SRECs) - The market for SRECs is limited in Michigan, but there are times where utilities, such as DTE or Consumers Energy, will buy excess energy.
  • Low-Cost Solar Loans - There is a low-cost program, called Michigan Saves, that helps homeowners pay for solar installation.
  • State Property Tax Exemptions - You will pay just $32 extra per year on your property taxes, which is much lower than other states.
  • Net Metering - Net metering was eliminated in 2019 in an effort to make electricity more affordable for everyone. Through this program, you may be eligible to receive credits for exported energy at a lower than retail rate.

Examples of incentives you could receive depending on the product installed:

  • Cherryland offers per panel incentive.
  • Traverse City Light & Power, post-installation incentive.
  • Alger Delta, up to $3,000 cash incentive.

Paying for a Home Solar Systemmichigan saves

There are two ways to pay for your residential solar system or solar panels: cash or financing. If you're paying cash for your installation, it's very straightforward, and you will simply need to speak with a sales representative and get quoted.

If you're financing your solar installation, Michiganders can take advantage of the Michigan Saves loan program.

The Michigan Saves program is a home energy loan program that helps homeowners get approved to make upgrades to their home with low or no upfront cost.

The maximum loan amount you can receive with a Michigan Saves loan is $60,000. Your credit will affect your interest rate, but most applicants have an interest rate around 5-6%.


Why Choose Peninsula Solar?Sol Ark

At Peninsula Solar, we pride ourselves on our ability to overcome obstacles and perform lasting and efficient installations in some of the most difficult working conditions. Don't write off your project; let us surprise you as to what is possible. We are a Sol-Ark Certified Installer, and our team of experts is dedicated to providing high-quality solar solutions to our customers.



Investing in a residential solar system is a smart and sustainable choice for homeowners in Michigan. Not only can you significantly reduce or eliminate your monthly electric bills, but you can also take advantage of federal and state incentives to offset the initial cost of installation. With a solar system, you can own your own energy, extend the life of your roof, and increase the value of your home.

Whether you're thinking about adding a small solar array to your home or wondering about going entirely off-grid, Peninsula Solar is here to help. Call us today at 906-235-0340 or request a quote online to learn more about our products and services. Take the first step toward a brighter, greener future with Peninsula Solar.