Photo:Flickr/ karpov the wrecked train
It’s really nice that we’re SolarPowerRocks.com and that we have the opportunity to praise the Rock ‘n’ Roll City of Detroit and its utility, DTE Energy, for launching a solar incentive program.
Contrary to popular belief, solar works great in cold weather. In fact, solar panels work better in cold temperatures. What matters with solar is the amount of light that hits the panels, not heat. That’s why it’s great that customers in Detroit, Ann Arbor, Flint, Livonia, and pretty much any city in the thumb of Michigan can benefit from some awesome solar incentives from DTE Energy.
The incentives come in 3 parts:
- First, you get an upfront cash rebate of $2.40/watt. How much that works out to for you depends on the size (the number of watts) of your solar power system. If you have an average 5kW (5000 watt) system, that multiplies out to $12,000 off the top of your up front costs. Again, you might get a lower rebate if you need fewer solar panels to cover your energy needs. Of course, your costs are lower as well.
- Second, you get a production incentive. This is similar to a feed in tariff. Essentially, DTE pays you 11 cents for every kilowatt-hour (kWh) of solar power that your system produces. For the same 5kW example above, that adds up to an extra $610 in your pocket every year, give or take. (We’re assuming average Detroit rain, snow, good roof orientation, etc.)
- Third, like all Americans, you qualify for the 30% Federal tax credit. On a 5kW system, that could mean reducing your net cost another $6,900.
- Bottom line, with the production incentive, the upfront rebate, and the Federal Tax credit, your net cost for an average 5kW system is around $6,000 when it’s all added up.
Of course, I haven’t added in net metering and the electric savings over the next 25 years, which will more than make up that $6,000 cost. To find out how much specifically for you, you really need to get a free estimate from a local installer.
Last modified: May 16, 2019