Michigan Homeowners Rush to Install Rooftop Solar as Federal Tax Credit Nears End

Michigan homeowners are racing to install rooftop solar panels before the federal tax credit expires on December 31, 2025.

 

The 30% Residential Clean Energy Credit, established under the Inflation Reduction Act of 2022, was initially set to last through 2032.

 

However, recent legislative changes have accelerated its termination, leaving residents with a limited window to benefit from the incentive.

 

Solar installation companies across Michigan are experiencing a significant uptick in demand.

 

Mark Hagerty, president of Michigan Solar Solutions, noted, "We are experiencing a last-minute rush in customers that are trying to get a system installed before the end of the tax credit."

 

This surge is placing pressure on contractors to complete projects promptly.

 

The average cost of a residential solar system in Michigan is approximately $15,501.

 

With the 30% tax credit, homeowners can save around $4,650, reducing the net cost to about $10,851.

 

Without this incentive, the financial feasibility of solar installations becomes less attractive for many.

 

In response to the impending expiration, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) has announced the Solar for Savings program.

 

This initiative aims to support low-income households by providing grants for rooftop and community solar projects.

 

For instance, Hope Village Revitalization plans to retrofit 10 homes in Detroit and Highland Park with solar panels, battery storage, and energy-efficient upgrades.

 

Despite these efforts, industry experts express concern about the future of solar adoption in Michigan.

 

John Richter, a renewable energy consultant, stated, "They are currently seeing a surge of interest as homeowners and businesses try to get a solar energy system installed before the imprudently accelerated termination of the tax credits."

 

He warned that the following year could bring a "grim business environment" with potential job losses.

 

Homeowners considering solar installations are advised to act swiftly.

 

Justin Carpenter, policy director for the Michigan Energy Innovation Business Council, emphasized the urgency, noting that broader economic uncertainties may lead individuals to be more cautious with their spending.

 

As the deadline approaches, the combination of federal incentives and state programs presents a compelling opportunity for Michigan residents to invest in renewable energy and achieve long-term savings.

 

However, time is of the essence to capitalize on these benefits before they diminish.