sunfinder
Free Calculator

Solar Panels in Ann Arbor, Michigan

Ann Arbor receives 1213.8 kWh per kWp of solar panels per year — 20.3% below the US national average of 1,550 kWh/kWp. At Michigan's electricity rate of 19.52¢/kWh, an 8 kW system saves roughly $1,895/year and pays back in 8 years.

Solar is well worth it in Ann Arbor. Note: The 30% federal solar tax credit (Section 25D) expired December 31, 2025. The numbers below reflect today's actual costs.

Annual yield:1213.8 kWh/kWp
Electricity rate:19.52¢/kWh
Payback:8 yrs
Location:42.28°N

Ann Arbor Solar at a Glance

Annual solar yield1213.8 kWh/kWp/yr
Optimal tilt angle32° south-facing
Avg. daily sun hours19.6 hrs/day
Electricity rate19.52¢ per kWh
8 kW system cost (2026)$22,400
Your net cost$22,400
Annual savings$1,895/yr
Payback period8 years

Last updated: April 11, 2026 · Sources: PVGIS v5.3, EIA

How Much Solar Power Does Ann Arbor Get Each Month?

Monthly solar yield (kWh per kWp installed) based on PVGIS satellite data for 42.28°N, 83.75°W.

60
73
111
120
133
131
139
130
108
91
70
48
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Best month: 139 kWh/kWp (Jul)Worst month: 48.3 kWh/kWp (Dec)Monthly avg: 101 kWh/kWp

Live Solar Forecast for Ann Arbor

Real-time generation estimate for an 8 kW system based on today's weather forecast. Data: forecast.solar.

Loading live forecast…

Is a Home Battery Worth It in Ann Arbor?

A battery stores excess midday solar for use at peak evening hours. At 19.52¢/kWh in Ann Arbor, here is the math for the two most popular options.

Tesla Powerwall 3
Capacity
13.5 kWh
Installed cost
$11,500
Annual savings
$769
Payback
15 yrs

10-year value: $7,690 · Based on 365 cycles/yr, 19.52¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Generic LFP 10 kWh
Capacity
10 kWh
Installed cost
$8,000
Annual savings
$547
Payback
14.6 yrs

10-year value: $5,470 · Based on 350 cycles/yr, 19.52¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Battery ROI improves significantly in states with Time-of-Use (TOU) rates where peak electricity can cost 2–3× the off-peak rate. California (PG&E, SCE, SDG&E), New York (ConEd), and Massachusetts (Eversource) have the strongest TOU incentives for battery storage.

What Are the 25-Year Solar Savings in Ann Arbor?

Based on 1213.8 kWh/kWp/yr yield, 19.52¢/kWh electricity rate, and a 2026 system cost of $2.80/W. Federal tax credit expired Dec 31, 2025 — not included.

System cost
$22,400
Installed, 8 kW
Federal ITC
Expired
Sec. 25D ended Dec 2025
Net investment
$22,400
Your actual cost
25-yr savings
$45,006
Est. lifetime benefit
Federal Solar Tax Credit Update: The 30% residential solar tax credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill. Cash and loan purchases no longer qualify for the federal credit. State and local incentives below may still apply — check with your installer.

What Solar Incentives Are Available in Ann Arbor, Michigan?

The federal ITC expired in 2025. These state and utility incentives still apply in Michigan.

Property Tax Exemption
Michigan exempts the solar-added home value from property taxes. A $22,400 system won't raise your tax bill.
Net Metering
Earn bill credits for excess solar electricity sent back to the grid.
Utility & Local Programs
Full retail net metering (DTE/Consumers), property tax exemption
Calculate Your Exact Savings
Enter your monthly bill, roof size, and location for a personalized estimate.
Open Calculator

Solar Panels in Ann Arbor: Frequently Asked Questions

How much do solar panels cost in Ann Arbor, Michigan in 2026?
In Ann Arbor, a typical 8 kW solar system costs approximately $22,400 installed (at ~$2.80/W, the 2026 US average). The federal solar tax credit expired December 31, 2025, so that 30% rebate is no longer available for residential cash or loan purchases. Prices vary by installer, panel brand, and roof complexity.
Is solar worth it in Ann Arbor without the federal tax credit?
Ann Arbor generates 1213.8 kWh per kWp annually — 20.3% below the US average. At Michigan's electricity rate of 19.52¢/kWh, an 8 kW system saves roughly $1,895/year and pays back in about 8 years — even without the expired federal credit. Solar is well worth it in Ann Arbor.
How much electricity do solar panels produce in Ann Arbor?
In Ann Arbor, each kW of solar panels produces approximately 1213.8 kWh per year. An 8 kW system generates about 9,710.4 kWh annually — enough to cover the average Michigan household's electricity use. Peak production hits 139 kWh/kWp in Jul, with the lowest output of 48.3 kWh/kWp in Dec. Data source: PVGIS v5.3 satellite radiation model.
What solar incentives are available in Ann Arbor, Michigan?
the expired federal tax credit (Section 25D) expired December 31, 2025 and is no longer available for residential buyers. Michigan also exempts solar systems from property tax assessments. Net metering and local utility programs may provide additional savings.
How long is the solar payback period in Ann Arbor?
In Ann Arbor, the average payback period for an 8 kW solar system is approximately 8 years. This is based on 1213.8 kWh/kWp annual yield (PVGIS data), a 19.52¢/kWh electricity rate (EIA 2026 data), and an $22,400 installed cost. After payback, the system produces free electricity for 15–20 more years.

Environmental Impact & Home Value in Ann Arbor

An 8 kW solar system in Ann Arbor produces roughly 9,710.4 kWh/year. Here is what that means beyond your electricity bill.

🌿
CO₂ avoided per year
3.7 tonnes
3,748 kg · EPA grid avg 0.386 kg/kWh
🌳
Tree equivalent
172 trees
Trees needed to absorb same CO₂ annually
🏠
Home value boost
+$1,546
Avg +6.9% (Lawrence Berkeley Lab / Zillow data)
US homes powered
1
Avg US home uses 10,632 kWh/yr (EIA 2024)

How Many Solar Panels Do You Need in Ann Arbor?

The right system size depends on your annual electricity usage and how much of your bill you want to offset. In Ann Arbor, where annual solar yield is 1213.8 kWh per kWp, here is what different households typically need:

Annual usageSystem sizePanels (400 W)Est. costAnnual savings
6,000 kWh
Small home
5.0 kW13 panels$14,000$1,171/yr
10,800 kWh
Average home
8.9 kW23 panels$24,920$2,108/yr
15,000 kWh
Large home
12.4 kW31 panels$34,720$2,928/yr
20,000 kWh
Large + EV
16.5 kW42 panels$46,200$3,904/yr

Costs based on $2.80/W installed (2026 US average). Panel count assumes 400 W modules. Savings based on current 19.52¢/kWh rate. State incentives not included — see above for Michigan credits.

Ann ArborSolar Resources & 2026 Incentives

Key information for homeowners in Ann Arbor going solar in 2026 — after the federal 30% tax credit expired December 31, 2025.

⚡ Federal Tax Credit Status (2026)

The 30% Section 25D residential solar credit expired December 31, 2025. An 8 kW system in Ann Arbor costs $22,400 after any applicable state credits. The commercial Section 48 credit (for businesses, landlords) was not affected.

IRS Residential Clean Energy Credit →
🔌 Net Metering in Michigan

Michigan has a net metering policy. Contact your local utility for current export rates.

DSIRE — Michigan Incentive Database →
🏛️ Michigan State Incentives

Full retail net metering (DTE/Consumers), property tax exemption

✓ Property tax exempt
📚 Authoritative Sources