The Michigan Solar Opportunity
New Solar Opportunity in Michigan
Two important recent developments have created a historic opportunity for Solar Energy Systems in the state of Michigan. First, Michigan passed legislation in November 2023, which increased the allowable size for solar energy systems from 150kW to 550kW, and essentially doubled the amount that the Utilities are required to pay solar customers for excess generation sent back to the grid.
Click here to read about the new Michigan law.
And second, the Inflation Reduction Act increased the size of the federal Investment Tax Credit (ITC) from 26% to 30%, plus an additional 10% for many counties in the state which are deemed "Energy Communities" by the federal government. So, if you are in a county deemed an Energy Community, your solar energy system would generate a 40% ITC, meaning that 40% of the total cost of the solar array would be offset by a credit on your federal tax return.
Click Here to read about the Investment Tax Credit
75% of Michigan counties are deemed by the federal government to be "Energy Communities".
See if you are in an Energy Community.
Investment Opportunity
Given these two significant changes in Michigan, along with with historically low costs for solar energy system components (such as solar panels, inverters and related equipment), solar energy systems are now an extremely attractive investment opportunity for commercial and industrial energy consumers in the state. Solar energy systems allow commercial customers to substantially reduce their electric utility bills and generate significant long term energy cost savings. For customers located in Energy Communities, these solar energy systems can generate internal rates of return between 20% and 25%, depending upon location and utility rate categories.
No-Cost Utility Rate Review and Opportunity Assessment
During a limited promotional period, Solscient Energy will provide prospective commercial and industrial customers with a free energy cost assessment, which will analyze the commercial customer's electric utility bill to: (1) assess whether the customer is on the most advantageous rate under the utility's current tariff, and (2) develop a preliminary solar energy system design with energy production and cost savings projections, along with expected investment returns and available financing alternatives including Leasing and Power Purchase Agreement financing.
This free assessment can be conducted by simply providing Solscient with a copy of your electric utility bill. We will take it from there.