Solar Panel Cost in Detroit, MI
Updated 2026 guide to solar panel prices, savings, and payback period in Detroit.
Estimated Solar Savings
Solar Panel System Costs in Detroit, MI
Below are estimated costs for different solar panel system sizes in Detroit, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $12,000 | -$3,600 | $8,400 | 5,256 kWh |
| 6 kWMost Popular | $18,000 | -$5,400 | $12,600 | 7,884 kWh |
| 8 kW | $24,000 | -$7,200 | $16,800 | 10,512 kWh |
| 10 kW | $30,000 | -$9,000 | $21,000 | 13,140 kWh |
| 12 kW | $36,000 | -$10,800 | $25,200 | 15,768 kWh |
What Affects Solar Panel Cost in Detroit?
The average cost of solar panels in Detroit, MI is approximately $300/watt before incentives. For a typical 6kW residential system, that means a total cost of about $18,000 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $12,600.Detroit homeowners typically see a payback period of 10 years and save an estimated $25,000 over 25 years.
Factors that affect your cost in Detroit:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary within the Detroit metro area
- Local permits: Permitting costs and requirements vary by municipality in Detroit
- Incentives: State and local programs can significantly reduce your out-of-pocket cost
Solar Incentives Available in Detroit
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
Michigan homeowners can claim the 30% federal solar tax credit to reduce their installation costs.
State & Local Incentives
Net Metering (Distributed Generation)
Net MeteringMichigan offers distributed generation programs through DTE and Consumers Energy with credits for solar production.
Net Metering
Michigan's distributed generation program replaced traditional net metering. DTE Energy and Consumers Energy offer different rate structures for solar customers.
AvailableSRECs
Michigan does not have an SREC market. The state's Clean, Renewable, and Efficient Energy Act encourages but does not require solar specifically.
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Solar Panel Cost FAQ - Detroit, MI
The average cost of solar panels in Detroit is approximately $3.00 per watt before incentives. A typical 6kW residential system costs about $18,000 before the 30% federal tax credit, bringing the net cost to around $12,600.
The typical payback period for solar panels in Detroit is approximately 10 years. After that, you'll enjoy free electricity for the remaining 15-20+ years of your system's life, saving an estimated $25,000 over 25 years.
Detroit homeowners can take advantage of the 30% federal solar tax credit, which reduces your system cost by 30%. Michigan also offers net metering, and various state-level incentive programs. Check our incentives page for the complete list.
Detroit homeowners can save an estimated $25,000 over 25 years by going solar. Actual savings depend on your electricity usage, system size, roof orientation, and available incentives. With electricity rates averaging $0.17/kWh in Michigan, solar provides significant long-term savings.
Solar Costs in Other Michigan Cities
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