Ann Arbor particulars
Ann Arbor's Building, Rental and Inspection Services runs an expedited path for residential solar that needs only an electrical permit. Its 2020 checklist says the city doesn't charge line-item solar fees, application fees or plan review on that path. The 2020 fee sheet matches: "Solar Panels per set of 3 panels $0," with a $35.00 inspection where one applies. Both papers are six years old. Turnaround is printed as 3 to 5 business days for expedited residential work and 5 to 10 for the rest.
A non-expedited job adds a building permit: a $15 application, $37.50 to $100 for plan review and a $150 to $400 permit by project cost. Its number, per the city's page, is 734-794-6263. NREL named Ann Arbor on November 30, 2022 as one of 12 communities picked for Step 2 of the SolarAPP+ Prize, but whether the city went live on SolarAPP+ isn't stated, so ask the office. The MPSC map shows DTE Electric as the utility here; check your address with DTE.
The city's undated Solarize FAQ puts the southeast Michigan average at about $3.13 per watt, within $2.70 to $3.80. It also describes a federal credit the IRS says isn't available for property placed in service after December 31, 2025. Divide a quote's total by its watts and set that beside the FAQ's range.
Solar panel installation in Ann Arbor: what to know
That checklist says expedited residential solar needs only an electrical permit, and that the city doesn't charge line item solar fees, application fees or plan reviews. Both documents date from 2020, so ask Building, Rental and Inspection Services (734-794-6263, per the city's page) whether they still hold.
A residential system that isn't expedited also needs a building permit: a $15 application fee, a plan review fee of $37.50 to $100 and a permit fee of $150 to $400 by project cost. The city prints a turnaround of 3 to 5 business days for expedited residential work. Other work takes 5 to 10.
Permits for solar panel installation in Ann Arbor
Electrical contracting in Michigan takes an electrical contractor license under the Skilled Trades Regulation Act, 2016 PA 407, Article 7 (MCL 339.5737(1)).
When to call 911 and when it can wait
- Smoke, a burning smell or fire at the inverter, panels or wiring is a 911 call. Leave the equipment alone.
- You're still comparing quotes and nothing is installed.
What to do before you ask for quotes
Try this first: ask the installer whether the design qualifies for expedited residential review, because the answer decides which permits apply.
- Pull 12 months of electric bills: the utility sizes to 110 percent of that use.
- Get at least three bids, as the MPSC suggests.
- Ask each company for its electrical contractor license number and look it up with LARA.
- Ask for the list above in writing, as the quote guide explains.
What solar panel installation costs
The estimate below is the Michigan-wide one, adjusted for Michigan wages and not for Ann Arbor in particular. The same table is on the solar panel installation page. How we estimate costs. Prices as of Oct 23, 2026.
| Item | Figure | What it is |
|---|---|---|
| Estimated range, not a quote | $16,900 to $23,400 for a typical 7 kW rooftop system, before any incentive | Built from 2 national published ranges, adjusted by the Michigan solar installer wage ratio (0.87) plus a typical permit fee ($94). Before any incentive: there is no federal credit for a system installed in 2026. |
| Estimated range per kilowatt of panels, not a quote | $2,400 to $3,325 per kilowatt (1,000 watts) of panels installed, before any incentive | Built from 2 national published ranges, adjusted by the Michigan solar installer wage ratio (0.87). Before any incentive: there is no federal credit for a system installed in 2026. |
| Solar photovoltaic installer wage, Michigan mean | $24.29 an hour | What installers are paid (BLS OEWS May 2025), not what you are charged. Only 310 people are in the Michigan estimate. |
| National median installed price, host-owned residential solar, 2025 | about $3.6 per watt before incentives ($3.0 cash, $4.5 loan-financed) | Berkeley Lab 2026 Data Update; national, read from chart labels. |
| Michigan average price, MPSC consumer tips, as of January 2023 | $3.77 per watt | Dated by the page; no source named. |
| Lansing BWL and the Ann Arbor Solarize FAQ, both undated | BWL about $3.00 per watt; Solarize average $3.13, range $2.70 to $3.80 | Municipal pages with no date; Solarize is southeast Michigan. |
How we estimate costs: the Estimated range row comes out of a model, so treat it as a planning figure and never as a quote. It takes 2 published national ranges for this job (cost guides from third-party sites that we haven't verified and don't cite) and multiplies them by Michigan's solar installer wage ratio to the US (0.87, BLS May 2025) and adds a typical permit fee ($94). The range is before any incentive: the federal residential clean energy credit does not apply to systems installed after December 31, 2025. The wage and permit rows are what installers are paid and what the city charges, and neither is a price. We have not collected quotes, and too few Michigan installers publish prices to show a range. Full method.
Questions about solar panel installation
Is there a federal tax credit for solar panels in Michigan in 2026?
No, the credit is not available for a system finished after December 31, 2025. Paying early doesn't help if the installation completes in 2026.
Does Michigan still have net metering?
New customers join the distributed generation program, which credits what you send out at the power supply rate, not the retail rate. Public Act 235 of 2023 raised the cap from 1 percent to 10 percent.
Will solar panels raise my property taxes in Michigan?
Not until the home is sold, for a system up to 150 kW whose output doesn't exceed your annual use (MCL 211.27(2)(p)). After a sale the assessor may add the system's value.