All states · Michigan
Updated October 2026 · ranks 27 of 50
Only under favorable conditions
6 kW system · $18,780 after incentives · $1,379 returned in year one
0 yrs25 yrs
At 14.0 years the outcome depends more on individual circumstances than on the state average. It shortens appreciably with above-average consumption, an unshaded south-facing roof, or an installed price below $3.13 a watt, and lengthens with the opposite.
The answer depends on the individual property rather than the state average. At 14.0 years, shading or below-average consumption can move the outcome materially in either direction.
The case modeled here approximates an average Michigan household on the state average rate of 23.1¢, with an unshaded roof and no financing: $18,780 of capital, $1,379 returned in the first year, and break-even near year 14.0. Above-average consumption, a south-facing roof or a competitive installed price shorten that period; shading, a loan carrying a dealer fee, or a sale within six years lengthen it. Because exports earn only 8.1¢, daytime occupancy carries measurable value: a household absent between nine and five performs appreciably worse than this figure.
At 23.1¢ per kilowatt-hour, Michigan pays 40% more for electricity than the United States average of 16.5¢. A high retail rate is the principal driver of a short payback, since each kilowatt-hour generated displaces an expensive one.
A 6 kW array in Michigan generates approximately 7,744 kWh a year, below the national median. This is not disqualifying - Germany installs solar at lower irradiance than any US state - but it means the retail electricity rate matters more here than the weather does.
Michigan provides little or no net metering. Exported power earns approximately 8.1¢ against a retail rate of 23.1¢, roughly a quarter of its purchase price. The practical consequence is that a smaller system, consumed almost entirely on site, repays faster than a large one - the reverse of the position in full-net-metering states.
Michigan offers no state rebate or tax credit at present, so the installed price of $18,780 stands. With Section 25D expired there is no federal credit to deduct either, the first year in over a decade in which that has been the case.
A 6 kW system, the size typical of Michigan households, costs approximately $18,780 installed at $3.13 a watt before deductions. No deduction applies in Michigan: there is no state rebate, no state tax credit, and no federal credit following the expiry of Section 25D on 31 December 2025. That is well above the $2.85 national median, which is why a high retail rate alone does not shorten the payback here as much as it first appears. Smaller systems cost more per watt and larger ones less, although a larger array is worth less here, since exports earn only 8.1¢.
| System size | 6 kW |
|---|---|
| Annual production | 7,744 kWh |
| Installed cost | $18,780 |
| Incentives | none |
| Net cost | $18,780 |
| Electricity rate | 23.1¢ / kWh |
| Export credit | 8.1¢ / kWh |
| Year-one saving | $1,379 |
| Break-even | 14.0 years |
| 25-year gain | $22,679 |
Of the 50 states published here, Michigan ranks 27th for how quickly a bought system repays itself. Fastest right now: Hawaii, New York, Illinois, Massachusetts. Slowest: South Dakota, Louisiana, North Dakota, Tennessee. Compare them all on the map.
Solar economics change at state lines rather than at county lines, because the export tariff and the netting period do. These states share a border with Michigan, and the figure each produces on the same assumptions.
About $18,780 installed for a 6 kW system at $3.13 a watt. No deduction applies in Michigan: no state rebate, no state credit, and no federal credit following the expiry of Section 25D. A system sized to daytime consumption costs less and repays faster here, because exports earn only 8.1¢.
Only under favorable conditions. A 6 kW system breaks even in 14.0 years on the assumptions used here, following the expiry of the 30% federal tax credit on 31 December 2025.
Approximately $1,379 in the first year on a 7,744 kWh system, rising thereafter as Michigan electricity rates increase. Almost all of that derives from power consumed as it is generated; at 8.1¢, export earns little.
A 6 kW array is about 14 modules at 430 W and generates 7,744 kWh a year here, which covers a household using roughly that much. Sizing beyond on-site use is poor value in Michigan, since the surplus earns 8.1¢ against a 23.1¢ retail rate. The sizing calculator works it out from a bill.
Only under favorable conditions. The retail rate here is 23.1¢ against a national average of 16.5¢, exports earn 8.1¢, and a 6 kW system breaks even in 14.0 years. What separates Michigan from states with similar sunshine is the rate and the export tariff, not the weather.
Michigan provides little or no net metering.
Generation is taken from NREL PVWatts v8 for the largest metropolitan area in Michigan, south-facing at 20°. The retail rate is from the EIA and the export credit from the state's net metering rule. The break-even figure incorporates 0.5% annual panel degradation, 3% annual electricity price growth, $150 a year in maintenance and an inverter replacement in year 12. The federal credit is set to $0 — Section 25D expired 31 December 2025. Imports and exports are netted over short intervals, so only about 65% of generation offsets consumption at the full retail rate. Full method and sources. Privacy. Export terms checked against the state source in August 2026.
These are estimates for comparison between states, not quotations. Roof orientation, shading, consumption pattern and installer pricing all affect the result. At least three written quotations are advisable before purchase.