Solar Incentives in Michigan

Michigan transitioned from traditional 1:1 net metering to a Distributed Generation Program (DGP) in 2018. Under DGP, energy consumed concurrent with generation is offset at retail rate (the customer simply consumes their own generation). Surplus exports beyond same-interval consumption are credited at the utility's power-supply component (excluding distribution and transmission charges) — typically $0.07–$0.10/kWh vs $0.18 retail. The Michigan Public Service Commission (MPSC) sets the framework; utilities (DTE Energy, Consumers Energy, Indiana Michigan Power) implement. The DGP cap was raised in 2022 legislation but program-specific limits may apply; confirm with your utility. Cooperatives operate separately and some retain better net-metering terms than the IOUs.

Michigan does not establish a statewide residential solar property tax exemption. Solar PV typically increases assessed value by 60–80% of installed cost. Some local jurisdictions interpret residential solar as personal property exempt under standard household-fixture provisions, but this is inconsistent. Confirm with your local Township Assessor. PILOT agreements are common for large commercial and utility-scale projects but not relevant to residential.

Michigan applies 6% sales tax to most residential solar equipment. There is no state renewable-energy sales tax exemption equivalent to MN, MA, or NJ. Installation labour may be exempt under construction-services treatment in some installer arrangements; equipment is fully taxable.