Is solar worth it in Michigan?
A 7.0 kW rooftop system near Detroit produces about 9,034 kWh a year. Priced against the 40 residential tariffs currently on file in Michigan, payback runs from 10 years on the best of them to 60 on the worst.
Why the tariff matters more than the panels
Two households in Michigan with identical roofs and identical systems can see paybacks 10 and 60 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 56% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.
That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →
Payback by tariff in Michigan
7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 40 of 40 tariffs here belong to a utility that reports residential net metering.
| Utility | Tariff | Structure | Annual saving | Payback |
|---|---|---|---|---|
| Consumers Energy Co | Residential Service Secondary Non-Transmitting Meter Rate (RSM) | Time-of-use + tiered | $1,247–$2,149 | 10–17y |
| Consumers Energy Co | Residential Smart Hours Rate (RSH) | Time-of-use | $1,197–$2,113 | 10–18y |
| Consumers Energy Co | Residential Nighttime Savers Rate (RPM) | Time-of-use | $1,175–$2,093 | 10–18y |
| DTE Electric | Electric Vehicle Rate (Full Service) - D1.9 | Time-of-use | $1,124–$2,084 | 10–19y |
| DTE Electric | Residential Service Rate - (Full Service) - D1 | Tiered | $1,161–$2,060 | 10–18y |
| DTE Electric | Residential Time of Day Rate (Full Service) - D1.11 (No New Customers) | Time-of-use | $1,124–$1,993 | 11–19y |
| DTE Electric | Residential Time of Day (Full Service) - D1.2 | Time-of-use | $1,115–$1,894 | 11–19y |
| DTE Electric | Residential Space Heating (Full Service)-D2 | Time-of-use + tiered | $1,032–$1,825 | 12–20y |
| Consumers Energy Co | Residential Summer On-Peak Basic Service (RSP) | Time-of-use | $1,792 | 12y |
| DTE Electric | Water Heating Service Rate D5 Option 1 (Full Service Residential) | Flat | $865–$1,536 | 14–24y |
| DTE Electric | Residential Service Rate - (Retail Access Service) - D1 | Tiered | $863–$1,533 | 14–24y |
| DTE Electric | Electric Vehicle Rate (Retail Service) - D1.9 | Time-of-use | $825–$1,498 | 14–25y |
| DTE Electric | Residential Time of Use Pilot 2 (Full Service)- D1-B (CLOSED RATE) | Time-of-use | $814–$1,443 | 15–26y |
| DTE Electric | Residential Time of Use Pilot 1 (Full Service)- D1-A (CLOSED RATE) | Time-of-use | $812–$1,441 | 15–26y |
| DTE Electric | Residential Time of Day (Retail Service) - D1.2 | Time-of-use | $783–$1,366 | 15–27y |
Price it for your own usage and system size →
What would change this
Your roof. Production is modeled for Detroit on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within Michigan itself.
Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.
Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.
State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.