Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Lowered energy bills: You can avoid the premium cost of grid-tied power by creating some electricity at home.
- Better energy independence: Adding a battery storage system lets you have dependable energy during storms and grid outages.
What Solar Incentives Are Available to Detroit Homeowners?
Michigan homeowners who choose solar could qualify for rebates, special financing, tax credits and reimbursements. Here are just a few of the region's incentive offerings.
Incentive Type: Personal Tax CreditWebsite: ecowatch.com
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Detroit
Choosing a company is the first step toward a well-oiled and cost-efficient solar array. Consider each of these factors in your business search.
Licensing and Training
Michigan law has a de facto licensing requirement for solar photovoltaic installers. In other words, there's no explicit requirement for solar installers to have a license, but workers dealing with electrical wiring jobs do need a license. Solar thermal systems must be installed by a licensed mechanical contractor. You should also visit a company's website to learn about its private certifications. Two of the most prestigious are the Solar Heating Installer and PV Installation Professional certificates, granted by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Detroit
Your solar panels' style will influence how much energy you can produce. Monocrystalline panels perform the best but cost the most. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
If you need to charge an electric vehicle (EV) or use your solar power in dark weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more effective and user-friendly. Not every solar company includes these extras, so look for a provider that installs them if it's essential for you.
If you're a resident of Detroit and want a five-kilowatt solar energy system, you could expect to pay about $20,300 for parts and installation. See more information on specific component and panel costs in the table.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in Detroit
Choosing the correct financing solution will influence your overall solar system cost and potential savings. Common payment options include cash payments, loans, leases, and power purchase agreements. Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Like an auto or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, similar to an electric bill. We generally don’t recommend these two choices because you won't own the solar system and cannot use solar incentives. Look for companies that offer several payment plans to find the right fit for your financial needs.
The table below lists the average payback periods for different capacities of solar systems in Detroit.
The IRS allows you to claim a 26% federal tax credit on your new solar panels, so long as you purchase it before 2032. City and state governments and utilities might also offer their own financing programs, rebates, and incentives that could save you more money.
|Solar System Capacity
|Estimated Payback period
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Frequently Asked Questions About Solar in Detroit
How much money could I save by going solar in Detroit?
How common is solar energy in Detroit?
Will a solar PV system improve my Detroit home price?
What can I do to estimate my home's solar viability?
What is a Detroit solar panel's average lifespan?
How long does the photovoltaic installation process take?
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from specialty lenders, installer, local banks and the government. You'll need to pass a credit check to qualify for most of them. While the upfront costs are higher, and you'll be responsible for upkeep, you'll also have full ownership rights and can apply for many more financial rewards.
Should I get quotes from multiple Detroit solar companies?
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