Commercial Solar Incentives in Michigan

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Property Tax Exemption

Michigan exempts the 1.54% property tax for commercial businesses that install solar on their buildings. Businesses that install solar systems 150 kW or less can qualify for this exemption, and they must offset all or a portion of the energy the property uses.

Distributed Generation (Net Metering) Program

Michigan's distributed generation (net metering) program allows commercial businesses with solar systems sell the excess energy that their system generates back to utility companies at the utility's wholesale value. 

Michigan business owners may take advantage of the federal solar incentives available in addition to the MI-specific solar incentives,. When applied, these solar incentives have the potential to significantly reduce the cost of installing a solar system. 

Business Energy Investment Tax Credit (ITC)

The Business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Michigan may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Michigan business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Michigan Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Michigan installer to see which federal incentives can contribute to your solar system. 

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