Solar panels in Ann Arbor: what they cost and what they make
A typical Ann Arbor home needs 15 solar panels. They would make about 7,815 kWh a year and cost $16k to $24k before incentives. At today's electricity prices they pay for themselves in about 11.1 yrs.
See panels on your own Ann Arbor roof
Type your address. You get your roof from above, the panels that fit, a month-by-month forecast and a battery test. No phone number.
What solar costs in Ann Arbor
At $3.00 a watt, the median price cash buyers pay nationally, a 6.3 kW system costs about $18,900. Quotes in Ann Arbor will usually fall between $15,750 and $23,625. Complex roofs, main-panel upgrades and financing push prices up.
The 30% federal tax credit no longer applies to systems homeowners buy. This estimate includes no state or utility incentives; check with your utility before you buy.
The number that decides whether solar pays in Ann Arbor is what your utility pays for the power you send back. Under full payback is about 11.1 yrs. Under net billing it is about 18.3 yrs, because only the ~42% of solar a typical home uses as it is made saves the full retail price.
Cash purchase, prices rising 2.5% a year, panels losing 0.5% a year, $25/kW a year for upkeep. No federal credit for homeowner-owned systems.
Every way to pay for a 6.3 kW system in Ann Arbor
Change any number →| Way to pay | Day one | Monthly payment | Monthly net, year 1 | Ahead after 25 years |
|---|---|---|---|---|
| Pay cash Full price on install day | $18,900 | $0 | +$127 | $31k |
| Credit-union loan 8% APR, 20 years, no dealer fee | $0 | $158 | −$31 | $12k |
| “1.99%” solar loan 1.99% APR, 25 years, 25% dealer fee | $0 | $100 | +$27 | $20k |
| Lease $120/mo, +2.9%/yr | $0 | $120 | +$20 | $2,000 |
| Power purchase (PPA) 18.3¢/kWh, +2.9%/yr | $0 | $119 | +$21 | $5,700 |
Under net metering, at 21.5¢/kWh rising 2.5% a year. The “1.99%” loan’s $4,725 dealer fee is included in its payments. Lease and PPA prices are typical offers, not quotes.
How much sunshine Ann Arbor gets
kWh per kW, 25° southJul is the best month for solar in Ann Arbor, and Dec the weakest: a Dec day makes 34% of a Jul day. A 6 kW system would make about 289 kWh in Dec and 858 kWh in Jul.
On June 21 the sun rises at 5:58 am and sets at 9:15 pm, 15 hours 17 minutes of daylight. On December 21 it is up from 8:00 am to 5:05 pm, just 9 hours 5 minutes.
Peak sun hours in Ann Arbor, month by month
| Month | Flat ground | Panels at 35° | kWh per kW |
|---|---|---|---|
| Jan | 1.6 | 2.5 | 60 |
| Feb | 2.4 | 3.5 | 78 |
| Mar | 3.5 | 4.4 | 110 |
| Apr | 4.7 | 5.0 | 123 |
| May | 5.5 | 5.3 | 133 |
| Jun | 6.2 | 5.7 | 137 |
| Jul | 6.2 | 5.9 | 143 |
| Aug | 5.4 | 5.6 | 133 |
| Sep | 4.3 | 5.2 | 117 |
| Oct | 2.8 | 4.0 | 93 |
| Nov | 1.8 | 3.0 | 67 |
| Dec | 1.3 | 2.0 | 48 |
| Year | 3.8 | 4.3 | 1,240 |
A peak sun hour is one hour of sunlight at 1,000 W per m². Why sites disagree.
The best angle and direction for panels in Ann Arbor
| Roof faces (6/12 pitch) | Output vs south | kWh per kW |
|---|---|---|
| South | 100% | 1,240 |
| Southeast | 96% | 1,190 |
| Southwest | 95% | 1,178 |
| East | 84% | 1,042 |
| West | 83% | 1,029 |
| North | 63% | 781 |
Face panels south and tilt them 35° for the most energy over a year. East and west roofs keep about 84% of that. A north-facing roof keeps 63%, which is rarely worth the money. Try other angles.
Where the sun goes over Ann Arbor
The noon sun is lower in winter, which is why the best winter tilt (63°) is steeper than the best summer tilt (13°).
Ann Arbor's homes
Ann Arbor has 50,499 households. 45.5% own their home, and 21,091 of those owners live in single-family houses, the kind of home that usually gets rooftop solar.
The median home here was built in 1971. Many roofs that age are due for replacement. Replace the roof first, then add solar: taking panels off and putting them back later costs thousands.
26.1% of homes heat with electricity and 70.7% with gas. If you switch to a heat pump or an electric car, plan for more panels or leave room on the roof.
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates.
If the power goes out in Ann Arbor
Solar panels alone shut off in a blackout. Add a battery and they keep going. One Tesla Powerwall 3 (13.5 kWh) running a fridge, freezer, furnace fan, lights, Wi-Fi, TV and microwave (6.9 kWh a day):
Change the appliances, the battery and the weather in the battery calculator.
Questions people ask about solar in Ann Arbor
How much do solar panels cost in Ann Arbor?
A 6.3 kW system — enough for the average Michigan home — costs about $15,750 to $23,625 before incentives, based on $2.50–$3.75 per watt. The 30% federal credit no longer applies to systems homeowners buy.
How many solar panels does a house in Ann Arbor need?
About 15 panels of 420 watts for a home using 618 kWh a month, the Michigan average. Each kilowatt of panels here makes about 1,240 kWh a year on a south-facing roof.
Is solar worth it in Ann Arbor?
Over 25 years, solar power here costs about 12.4¢ per kWh, against 21.5¢ from the grid today. Payback is about 11.1 yrs if your utility credits exported power at the full retail rate, and 18.3 yrs if it pays about 30% of retail.
How many peak sun hours does Ann Arbor get?
4.3 a day on panels tilted to 35°, and 3.8 on flat ground. The best month is Jul; the weakest is Dec.
What is the best angle for solar panels in Ann Arbor?
35° for the most energy over a year, facing south. 63° is best in winter and 13° in summer. On a normal pitched roof, anything within 15° of 35° gives you about 95% of the maximum.
How long would a home battery last in a Ann Arbor power outage?
A Tesla Powerwall 3 running a fridge, freezer, furnace fan, lights, Wi-Fi, TV and microwave (6.9 kWh a day) lasts about 43 hours with no sun. With 7 kW of solar to recharge it, it gets through a three-day outage even in overcast January.
Solar near Ann Arbor
| City | Miles | kWh per kW | Sun hours |
|---|---|---|---|
| Westland, MI | 18 | 1,254 | 4.3 |
| Novi, MI | 19 | 1,255 | 4.3 |
| Livonia, MI | 20 | 1,254 | 4.3 |
| Dearborn Heights, MI | 23 | 1,253 | 4.3 |
| Farmington Hills, MI | 23 | 1,255 | 4.3 |
Cities with the same sunshine as Ann Arbor
These far-away cities get almost exactly as much solar energy per panel.
- Manchester, NH 1,260 kWh per kW
- Coeur d'Alene, ID 1,261 kWh per kW
- Springfield, MA 1,268 kWh per kW
Snow: NASA records about 17 cm of snow on the ground here in an average January. Covered panels make little until it slides off, and these figures (like PVWatts') don't subtract that.
Sources: NASA POWER 2001–2020 monthly climatology (grid cell 31 km from Ann Arbor's Census point), our PV model (within 1.6% of NLR PVWatts® on average), U.S. EIA prices and use, U.S. Census 2025 population estimates and ACS 2020–2024. Estimates for an average home, not a site survey. How we calculate.