The cost of solar panels in Ann Arbor, MI (2025)

Updated Oct 28, 2025

  • You'll pay an average of $15,319 to install a 5 kilowatt (kW) solar panel system in Ann Arbor, MI before any available incentives.

  • Solar panels typically last 25-30 years, generating free electricity and protecting you from rising utility rates for decades.

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Written by:Emily Walker

Your electric bill doesn't care about your budget. It just keeps climbing. That's the bad news. The good news? Solar panels can lock in decades of predictable energy costs in Ann Arbor, MI while your neighbors watch their utility bills rise.

As of October 2025, the average solar panel system costs $3.06/W including installation in Ann Arbor, MI. For a 5 kW installation, this comes out to about $15,319 before any available incentives, though prices range from $13,021 to $17,617. That may sound like a lot, but most homeowners see solid returns on their solar investment over the system's 25-30 year lifetime.

Average price of a 5 kW solar panel installation in Ann Arbor, MI

Good Price
$13,021 or less
Market Average
$15,319
High Price
$17,617 or more

You may pay even less than what we show here. It doesn't include any potentially available Ann Arbor, MI or local incentives, which can help lower costs.

Your solar panel cost depends on your system's size

It may seem obvious but larger solar panel systems cost more money. We use cost per watt ($/W) so you can easily compare quotes, controlling for slight variations in system size.

While a 5 kW system will only cost you $15,319 in Ann Arbor, MI, doubling the system size effectively doubles the price, so you'll pay about twice that for a 10 kW system.

Average solar cost by system size in Ann Arbor, MI

System size
System cost
3 kW$9,192
4 kW$12,256
5 kW$15,319
6 kW$18,383
7 kW$21,447
8 kW$24,511
9 kW$27,575
10 kW$30,639

Are solar panels worth it in Ann Arbor, MI?

Solar panels are worth it in most areas, including Ann Arbor, MI. Certain factors, including the cost of electricity, incentives, climate, and the angle at which the sun hits your roof impact how quickly you break even on your investment relative to other areas around the U.S. 

Homeowners in Ann Arbor, MI are expected to save an average of $30,360 over 25 years (the warranty term of most solar panels) on electricity costs with an average-sized solar panel system. We generate this estimate based on recent, real solar quote data from our Marketplace, factoring in system costs, electricity prices, available incentives, and inflation rates.

The savings estimate also includes the federal tax credit, which ends for systems installed after December 31, 2025, and is no longer available for most homeowners due to limited installer capacity through the end of the year. That means your savings will likely be a few thousand dollars less—but solar still delivers strong returns through long-term electric bill reductions.

Whether you have access to net metering or other solar buyback programs like net billing. will also

Payback Period
13.24 Years
25-Year Savings
$30,360
Cost-per-Watt
$3.06

If you can't shell out $15,319 in cash to pay for solar, don't sweat it. You can choose to finance your system with a loan instead. Some companies even offer $0-down loans so you can start saving on day one if your loan payments are less than your current electric bills. Just keep in mind that your long-term savings will be lower with a loan due to interest rates.

For homeowners who prefer not to own their system or want to keep capital flexible, solar leases and power purchase agreements (PPAs) often provide immediate savings with no money upfront. They're not offered everywhere, though, so it's worth double checking that providers offer these types of agreements systems in your area.

Find out what solar panels cost in your area in 2025
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The numbers we're showing are averages. The price you'll pay for solar depends on many factors unique to you and your home:

If you're looking for solar companies in MI, here are some popular suggestions:

  • Palmetto Energy
    Ann Arbor, MI
    Established 2009
    Elite+ Installer
    Palmetto is leading the world into a clean energy future by making it easy for homeowners across the United State... 
    Elite+ Installer
    Screened & Verified
    4.7 /5.0
    431 Reviews

    Palmetto is leading the world into a clean energy future by making it easy for homeowners across the United State... 
  • Strawberry Solar
    Detroit, MI
    Established 2010
    Elite Installer
    Strawberry Solar is headquartered in Detroit, serving the lower peninsula of Michigan. We are staffed with expert... 
    Elite Installer
    Screened & Verified
    4.9 /5.0
    63 Reviews

    Strawberry Solar is headquartered in Detroit, serving the lower peninsula of Michigan. We are staffed with expert... 
  • Blue Raven Solar, A SunPower Company
    Novi, MI
    Established 2014
    Elite Installer
    In 10 years, Blue Raven Solar has gone from three to over 3,200 team members nationwide and become a top solar co... 
    Elite Installer
    Screened & Verified
    4.6 /5.0
    520 Reviews

    In 10 years, Blue Raven Solar has gone from three to over 3,200 team members nationwide and become a top solar co... 
  • Oak Electric
    Ann Arbor, MI
    Established 1999
    Advanced Installer
    We don’t just want to be your solar installer we also want be your electrician, plumber and HVAC contractor. One ... 
    Advanced Installer
    Screened & Verified
    4.9 /5.0
    16 Reviews

    We don’t just want to be your solar installer we also want be your electrician, plumber and HVAC contractor. One ... 
  • North Coast Solar
    Davison, MI
    Established 2019
    Approved Installer
    We pride ourselves on providing the truth about how solar will benefit or not benefit our fellow Michiganders. It... 
    Approved Installer
    Screened & Verified
    5.0 /5.0
    35 Reviews

    We pride ourselves on providing the truth about how solar will benefit or not benefit our fellow Michiganders. It... 

Solar is a major purchase, but you can often get the price tag to come down by being an educated shopper. Taking advantage of incentives and shopping around for quotes can help lower your cost of solar in Ann Arbor, MI.

Search for incentives

While the federal tax credit is no longer available for most purchased systems, many states offer great local incentives and rebates that can further reduce your costs—so it's worth seeing what's available to you.

Get quotes from multiple installers

Comparing multiple solar quotes can save you money through competition and transparency. Each additional quote you receive for solar will help you find the right solar panel system at the right price.

This is where EnergySage can help. With funding from the Department of Energy’s SunShot Prize, EnergySage opened the country’s first (and now the largest) marketplace for home solar panel installations. We gather custom solar quotes from local installers on your behalf and put them in an easy-to-compare format. When you compare quotes for solar panels on the EnergySage Marketplace, you can expect to see prices up to 20% lower than if you work with a single solar company.

Solar panels aren't cheap. But neither is paying your utility company every month for the next 30 years. The difference? One of those bills eventually stops. The other one keeps climbing.

Getting solar quotes in doesn't cost you anything, but skipping this step could cost you thousands over your system's lifetime. Start comparing offers from Ann Arbor, MI installers today—your future self (and your wallet) will thank you.

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