All federal benefits apply to entities in Michigan.

Under the Solar Energy Facilities Taxation Act (2023 PA 108), owners of utility-scale solar energy generation facilities can obtain a Solar Energy Facility Exemption Certificate (SEFEC). This exemption provides a 100% exemption from ad valorem real property taxes for a term of 20 years. Exempt solar facilities are subject to a specific tax called the Solar Energy Facilities Tax. Applications are filed, reviewed, and approved by the local governmental unit, with final approval from the State Tax Commission .

Michigan offers a property tax exemption for renewable energy systems, including solar panels, with a capacity of up to 150 kilowatts. The system must offset some or all of the energy used on the property to be eligible for this exemption .

Michigan participates in net metering, allowing homeowners and businesses to receive credit for the excess solar energy their systems produce. Credits are valued at the full retail electricity price for systems 20 kW or less, and at the avoided cost rate for larger systems. Credits roll over indefinitely .

Homeowners who are unable to pay cash for their solar panel system are eligible for low-cost loans through Michigan Saves, the nation's first nonprofit green bank. The program offers loans with rates as low as 6.9% through partnerships with local credit unions .

Homeowners with solar energy systems can earn SRECs for each megawatt-hour (MWh) of electricity their system generates. These credits can be sold to utilities to meet renewable energy requirements, providing additional income. The market value of SRECs varies, and homeowners must register their systems with the Michigan Public Service Commission to participate .

Utility-based incentives in Michigan vary by provider. Some utilities may offer rebates or incentives for solar installations. It's advisable to contact your local utility provider to inquire about available programs.

Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC). This provision significantly enhances the financial benefits available to nonprofits investing in solar energy.

Michigan offers a combination of federal incentives, state tax exemptions, net metering, and utility-level incentives to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits.