Contemporary home with rooftop solar system in Ann Arbor, Michigan - Solar Incentives

Solar Incentives in Ann Arbor, MI

Complete guide to solar tax credits, rebates, and incentive programs available to Ann Arbor homeowners in 2026.

TL;DR

Ann Arbor homeowners can stack the 30% federal tax credit with Michigan programs to cut solar costs.

Ann Arbor homeowners qualify for the 30% federal solar tax credit (ITC) on total system cost.
Michigan offers net metering, crediting Ann Arbor homeowners for surplus solar sent to the grid.
Michigan adds 1 state-level incentive on top of the federal credit.
Incentives stack — combine the federal ITC with local and utility programs.

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Ann Arbor homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Ann Arbor, MI.

What solar incentives can Ann Arbor homeowners get?

Net Metering (Distributed Generation)

Net Metering

Michigan offers distributed generation programs through DTE and Consumers Energy with credits for solar production.

Value

Credits at varying rates depending on utility and program

How does net metering work in Ann Arbor, MI?

Available

Michigan's distributed generation program replaced traditional net metering. DTE Energy and Consumers Energy offer different rate structures for solar customers.

What are SRECs in Ann Arbor?

Not Available

Michigan does not have an SREC market. The state's Clean, Renewable, and Efficient Energy Act encourages but does not require solar specifically.

Tax Exemptions in Ann Arbor

Property Tax Exemption

No property tax exemption for solar systems

Sales Tax Exemption

No sales tax exemption for solar equipment

How to Claim Solar Incentives in Ann Arbor

Install your solar system: Work with a qualified Ann Arbor solar installer to design and install your system.
Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
Apply for state programs: Contact your Michigan energy office or local Ann Arbor utility to apply for available incentives.
Set up net metering: Contact your utility in Ann Arbor to set up net metering and start earning credits.
Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Row of solar panels producing renewable energy in Ann Arbor, Michigan - Solar Incentives

Frequently asked

Solar Incentives FAQ - Ann Arbor, MI

Ann Arbor homeowners can take advantage of the 30% federal solar tax credit, plus 1 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Ann Arbor homeowners approximately $5.4k on a typical system. Combined with Michigan state programs, total savings over 25 years can reach $25k or more.

Michigan's distributed generation program replaced traditional net metering. DTE Energy and Consumers Energy offer different rate structures for solar customers.

To claim the 30% federal ITC, Ann Arbor homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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