Why Using Solar Power in Michigan Makes Sense

Feb 14

At grid-scale and for on-site generation, solar power is a viable option for Michigan businesses. It’s true that other states, including Texas, Colorado, and Arizona, receive more sunlight, and solar has a proven track record and exceptional potential as a renewable energy source.

Why Invest in Rooftop Solar in Michigan

Michigan business owners have several reasons to invest in a customized rooftop solar array. The state may be known for its cold winters and dense cloud cover, but commercial solar can significantly reduce electricity costs and help property owners achieve energy independence.

Rising energy costs: Residential and commercial energy rates are increasing in Michigan and throughout the Midwest. Area utilities have increased rates 117% over the past 20 years. Recent investment in reliability upgrades, plus approval for more upgrades in the next few years. DTE Energy, Consumers Energy, and the Lansing Board of Water and Light have increased monthly rates by 7-9%, putting Michigan near the top of the list of states with the largest rate increases in the US.
Shorter payback periods: The combination of lower photovoltaic cell costs, commercial energy credits, and utility-based funding has shortened the commercial solar payback period in Michigan to 4-8 years. A major factor in the short payback period is the Investment Tax Credit (ITC), which provides a tax credit of up to 30% of qualifying project costs.
Long-term savings: Lower energy bills, reduced exposure to electrical price volatility, and the ability to sell electricity back to the grid make commercial solar a source of long-term savings. These savings will be even more pronounced if electricity prices continue to rise.

Businesses Selling Power Back to the Grid

Michigan’s Distributed Generation Program, previously known as net metering, allows businesses to “sell” any excess electricity from their solar panels back to the grid. With new legislation passed in 2023, businesses can earn up to 110% of their generated capacity, creating a strong revenue opportunity for Michigan businesses.

How Effective Is Solar Power in Michigan?

As you’d expect, solar power generation declines by roughly 70% in winter due to cloud cover and snow. However, winter comes with a silver lining. Solar panels are more efficient in cold weather, partially offsetting the combined effects of short days, low sun angle, and snow cover.

Despite these issues, the cost of solar power in Michigan per watt ranges from $2.55 to $3.34. A 6 kW to 7 kW system will cost about 3 to 6 cents per kWh over its lifetime.

How to Bring Solar Power to Northern Michigan

Solar power works in Michigan, and Keen Technical Solutions is committed to helping area businesses tap into this cost-effective investment. Count on our team to:

Identify solar power incentives in Michigan and federal tax credits to shorten your project’s payback period
Design the perfect solar power system. In Michigan, optimized design is critical for improving efficiency and maximizing generation.
Install your system perfectly. We’re proud to be among the most experienced solar power installers in Michigan, bringing highly skilled teams to every project.

Invest In Your Organization’s Success with Keen

After more than two decades in the commercial energy efficiency space, we’ve learned one thing: it’s all about energy. We bring deep experience, flexible solutions, and a friendly, collaborative approach to every project. Take the first step toward energy resiliency by contacting one of our energy consultants today.

Cody Sovis