Solar resource
Your solar production in Detroit
4.25 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Detroit, MI. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
DTE Energy (Detroit Edison) electricity rate
$0.177/kWh residential
- Utility
- DTE Energy (Detroit Edison)
- Residential rate
- $0.177/kWh (blended)
IMPORTANT: Michigan replaced traditional net metering with a Distributed Generation (DG) tariff in 2018. Under DTE's DG tariff, excess solar exported to the grid is compensated at DTE's avoided cost rate (~$0.038–$0.048/kWh) — not the full retail rate. This is significantly less than retail net metering and affects the economics of oversizing a solar system. Self-consumed solar saves at the full retail rate ($0.177/kWh); exported excess earns only ~$0.04/kWh. Right-sizing the system to match your consumption is important in Michigan.
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Incentives
Available solar incentives in Detroit, MI
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| Michigan Saves Home Energy Financing | Rebate | Low-interest financing (as low as 2.99–6.99% APR) for energy improvements including solar | State |
| Michigan Property Tax Exemption for Solar (PA 478 of 2008) | Exemption | Solar system value excluded from local property tax assessment | State |
| DTE Energy Distributed Generation (DG) Tariff | Net Metering | Avoided cost credit (~$0.038–$0.048/kWh) for excess solar exported to the DTE grid | Utility |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17700
- Federal ITC (30%)
- −$5310
- Net system cost
- $12,390
- Installed cost per watt
- $2.95/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Great Lakes region median installed cost for systems 3–10 kW.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,124
- Simple payback period
- 11.0 years
- 25-year net savings
- $25200
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Detroit
- Your panels produce power year-round in Detroit Detroit averages 4.25 peak sun hours per day — a Great Lakes climate with cloudier winters but strong summer production. A 6 kW system produces roughly 6,350 kWh/year, peaking June–August and producing significantly less November through January. Winter cloud cover and shorter days reduce December–January output to roughly 40% of summer peak months.
- An inverter converts DC to AC A string inverter or microinverters convert DC electricity from the panels to AC power your home uses. Modern inverters achieve 96–99% conversion efficiency.
- You use solar power instead of buying from DTE Energy Every kWh your system produces that you use directly offsets what you buy from DTE at approximately $0.177/kWh. A 6 kW Detroit system producing ~6,350 kWh/year saves approximately $1,124/year when fully self-consumed at current DTE rates.
- Michigan's DG tariff — NOT net metering — applies for exported excess Michigan replaced retail net metering with a Distributed Generation (DG) tariff in 2018. Excess solar you export to the DTE grid is compensated at DTE's avoided cost rate (~$0.038–$0.048/kWh) — not the full retail rate. This is a critical difference from most other states: oversizing your system to export more solar generates very little additional revenue in Michigan. Right-size your system to match your own consumption.
- Michigan Saves provides low-interest financing Michigan Saves, a nonprofit green bank, offers APR as low as 2.99–6.99% for home solar installations through its network of approved contractors. This is not a grant — it reduces upfront out-of-pocket cost while you repay the loan from ongoing energy savings. Ask your installer about Michigan Saves financing options at contract signing.
- You claim the 30% federal ITC and Michigan property tax exemption In the installation year, claim a 30% federal Investment Tax Credit on the full installed cost ($5,310 on a $17,700 system). Apply to your local assessor for the Michigan PA 478 property tax exemption, which excludes the solar system's added value from your property assessment — saving approximately $248/year. Net system cost after federal ITC: $12,390.
FAQ
Common solar savings questions for Detroit, MI
How much can I save with solar in Detroit, MI?
A 6 kW system in Detroit produces roughly 6,350 kWh/year and saves approximately $1,124/year when fully self-consumed at DTE Energy's ~$0.177/kWh rate. After the 30% federal ITC ($5,310), net system cost is about $12,390 — giving a payback of approximately 11 years. Michigan Saves low-interest financing and the PA 478 property tax exemption (~$248/year) improve the net economics further.
Does Michigan have net metering?
No — Michigan replaced retail net metering with a Distributed Generation (DG) tariff in 2018 (MPSC Case No. U-18090). Under DTE's DG tariff, excess solar exported to the grid is credited at DTE's avoided cost rate (~$0.038–$0.048/kWh) rather than the full retail rate (~$0.177/kWh). This is one of the most important solar policy differences between Michigan and other states. It makes right-sizing critical: a system that perfectly matches your consumption saves at full retail rate, but overproduction has minimal export value.
What is Michigan Saves and how does it help with solar?
Michigan Saves is a state-backed nonprofit green bank that provides low-interest loans (APR as low as 2.99–6.99%) for home energy improvements including solar PV. It reduces the upfront barrier by allowing you to finance the installation rather than paying cash upfront. Loans are available through Michigan Saves' network of approved solar contractors. Unlike a rebate, Michigan Saves financing must be repaid — but the loan can often be structured so monthly payments are less than current energy savings. Check eligibility and contractor network at michigansaves.org.
What is the Michigan PA 478 property tax exemption for solar?
Michigan Public Act 478 of 2008 provides a property tax exemption for the added assessed value attributable to a solar energy system. In Detroit, where effective property tax rates are among the highest in Michigan, a $17,700 solar installation saves approximately $248/year in local property taxes. Apply for the exemption with your local assessor — the exemption takes effect in the following tax year and continues for the life of the solar system.
Does Detroit get enough sun for solar to be worth it?
Yes, particularly given DTE Energy's relatively high rates (~$0.177/kWh). Detroit's 4.25 peak sun hours/day is lower than Sun Belt cities but produces meaningful savings when self-consumption is maximized. DTE's DG tariff makes oversizing less attractive, but a right-sized 5–7 kW system for most Detroit homes can pay back in approximately 10–12 years on energy savings alone, with Michigan Saves financing available to reduce upfront cost.
How many solar panels does a Detroit home need?
A typical Detroit home using 600–800 kWh/month needs a 6–8 kW system — roughly 16–21 standard panels at 380–400 W each. Given Michigan's DG tariff, avoid oversizing significantly beyond your own monthly consumption needs, since excess exports earn only ~$0.04/kWh rather than the full retail rate. Use the calculator above with your monthly DTE bill to size accurately.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://www.michigan.gov/mpsc/commission/cases
- https://www.dteenergy.com/us/en/residential/services/clean-energy/solar-energy.html
- https://michigansaves.org/
- https://openei.org/apps/USURDB/
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
- https://legislature.mi.gov/documents/mcl/pdf/mcl-211-7ff.pdf
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-18.