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Are Solar Panels Exempt from Property Taxes in Michigan?

Updated: Apr 30

Introduction


The adoption of solar energy is on the rise, and for a good reason. Not only does it help reduce our carbon footprint, but it also offers significant savings on energy bills. As more homeowners and businesses turn to solar energy, one question that often arises is whether or not solar panels are exempt from property taxes. This article specifically explores this question in the context of Michigan, while also providing insights into the work of solar installers in Michigan.


Understanding Solar Energy Taxation in Michigan


Michigan has been proactive in promoting renewable energy sources, including solar power. The state offers several incentives to encourage homeowners and businesses to install solar panels. One such incentive pertains to property taxes.


In 2013, the State Tax Commission issued a bulletin stating that "Alternative Energy Personal Property," which includes solar panel systems, is exempt from personal property taxes. This was a significant step towards making solar installations more affordable for Michigan residents.


However, it's important to note that this exemption applies only to personal property taxes and not real property taxes. In other words, while your solar panels won't increase your personal property tax bill, they could potentially raise your real estate or real property tax bill because they add value to your home.


Solar Installers Michigan: Making Solar Accessible


The role of solar installers in Michigan goes beyond just installing the panels on your roof or land. They are instrumental in helping homeowners navigate through the complex landscape of incentives, rebates, and potential tax implications associated with going solar.


Reputable solar installers in Michigan are well-versed with the state's taxation policies related to renewable energy installations. They can provide valuable advice on how installing a solar panel system might impact your property taxes and help you understand how you can take advantage of various state and federal incentives available for going green.


Solar Panels and Home Value


While there may be potential property tax implications, it's important to remember that installing solar panels can significantly increase the value of your home. According to a study by the Lawrence Berkeley National Laboratory, homes with solar panels sell for more than those without.


This means that even if your property taxes do go up slightly after installing solar panels, you could still come out ahead in the long run when you decide to sell your home. Plus, you'll be saving on your energy bills every month in the meantime.


Conclusion: Weighing the Pros and Cons


While it's true that installing solar panels in Michigan could potentially increase your real property taxes due to an increase in home value, it's crucial to weigh this against the numerous benefits of going solar. These include significant savings on energy bills, increased home value, and contributing to a cleaner environment.


Moreover, with various incentives and rebates available at both state and federal levels, the overall cost of installing a solar panel system can be substantially reduced. Solar installers in Michigan can guide you through these incentives and help make solar power a viable and affordable option for you.


In conclusion, while there may be some tax implications associated with installing solar panels in Michigan, they are far outweighed by the benefits. Going solar is not just an environmentally responsible choice; it's also a sound financial decision that can lead to significant savings over time. We would love to answer any questions you may have, please give us a call at (800) 93-5386.

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