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Solar panels in Detroit, Michigan: output, savings and payback

Solar panels in Detroit produce about 1,327 kWh a year for each kW installed, 12% less than the average of the 400 US cities in our data (1,517 kWh). Among the 8 Michigan cities we cover, it ranks 4th of 8 for solar output, against an average there of 1,324 kWh.

Michigan’s average residential electricity price for January to August 2026 was 21.73¢ per kWh, 3.54¢ above the US average of 18.19¢, according to the Energy Information Administration.

For a home using the US average of 899 kWh a month, a 8.1 kW system would cover a year’s use and save about $2,344 in its first year, or $79,918 over 25 years. With the average sunshine of the 400 US cities in our data, the same home would need a 7.1 kW system. Because Detroit gets less sun, it needs 14% more capacity to cover the same use, so at any price per watt the system costs 14% more and pays for itself later.

There is no verified US installed-price figure yet, so add the price per watt from your installer’s quote in the calculator below to see the payback period for Detroit.

A typical home in Detroit

System size
8.1 kW
Sized to cover 10,788 kWh a year
First-year generation
10,788 kWh
First-year savings
$2,344
At 21.73¢ per kWh
Savings over 25 years
$79,918
Prices rising 3% a year
Payback
Needs your quote
No verified US installed price yet: enter yours below

Assumes all the electricity the panels make is used at home, up to the home’s yearly use, and that panel output falls 0.5% a year. Power sent to the grid is counted at zero.

How Detroit compares

Detroit compared with the Michigan and US averages
DetroitMichigan averageUS average
Solar output, kWh per kW a year1,3271,3241,517
Electricity price per kWh21.73¢21.73¢18.19¢
System size for a typical home8.1 kW8.2 kW7.1 kW
First-year savings$2,344$2,344$1,962

Averages are of the 8 places in Michigan and the 400 US cities in our data, unweighted. The US column uses the US average price as well as the average sunshine.

Your home in Detroit

All amounts in US dollars.

Your home

Sets how much electricity each kW of panels makes in a year at your location.

kWh per month

Check your utility bill: most show monthly kWh. Average your last 12 months if you can.

cents per kWh

Starts at the Michigan residential average for January to August 2026. Your bill shows your own rate.

Solar system
kW

Leave blank to size the panels to cover your yearly use, or enter the size on your quote.

Installed price
$per W

Enter the price from your installer quote to see cost, payback and return. Your quote divided by the system size in watts (for example, a 6 kW system is 6,000 W).

Assumptions you can change
% per year

Starts at 0.5%, the median of nearly 2,000 reported rates in an NREL review.

% per year

A scenario, not a forecast. Try 0% and 5% to see how much it matters.

%

Share of the panels’ output your home uses as it is made. 100% assumes all of it offsets power you would otherwise buy, up to your annual use.

A battery only adds savings when you use less than 100% of your solar power directly. Lower “Used directly at home” under assumptions to model that.

Results

Payback period

Add your installer’s quoted price to see payback

First-year savings
$2,344
Savings over 25 years
$79,918
System size
8.1 kW
Sized to cover your yearly use
First-year generation
10,788 kWh
Cumulative savings over 25 yearsAdd your quoted price to compare against the cost.
Year-by-year table
Generation and savings for each of the 25 years
YearGeneration (kWh)Price per kWhSaved that yearSaved so far
110,788$0.217$2,344$2,344
210,734$0.224$2,402$4,747
310,680$0.231$2,462$7,209
410,627$0.237$2,523$9,732
510,574$0.245$2,586$12,318
610,521$0.252$2,650$14,969
710,468$0.259$2,716$17,685
810,416$0.267$2,784$20,469
910,364$0.275$2,853$23,321
1010,312$0.284$2,924$26,245
1110,261$0.292$2,996$29,242
1210,209$0.301$3,071$32,313
1310,158$0.310$3,147$35,460
1410,107$0.319$3,225$38,685
1510,057$0.329$3,306$41,991
1610,007$0.339$3,388$45,378
179,957$0.349$3,472$48,850
189,907$0.359$3,558$52,408
199,857$0.370$3,647$56,055
209,808$0.381$3,737$59,792
219,759$0.392$3,830$63,622
229,710$0.404$3,925$67,548
239,662$0.416$4,023$71,570
249,613$0.429$4,123$75,693
259,565$0.442$4,225$79,918

Savings count only electricity your home no longer buys. Power sent to the grid is valued at zero. Grid emissions data has not been verified yet, so no carbon figure is shown. See the methodology for every formula and source.

Nearby cities

CityDistancekWh per kW a yearPrice per kWhSystem sizeFirst-year savings
Columbus, Ohio166 miles1,32518.81¢8.1 kW$2,029
Chicago, Illinois238 miles1,36919.23¢7.9 kW$2,075
Indianapolis, Indiana240 miles1,36417.04¢7.9 kW$1,838
Milwaukee, Wisconsin251 miles1,37919.05¢7.8 kW$2,055
Louisville, Kentucky321 miles1,37314.20¢7.9 kW$1,532

Solar panels in Detroit: questions

How much electricity do solar panels produce in Detroit, Michigan?
About 1,327 kWh a year for each kW of panels, for a roof-mounted, south-facing array at a 30° tilt with 14% system losses (PVWatts). A 8.1 kW system would make about 10,788 kWh in its first year. Shade, a different roof angle or an east or west-facing roof will change this.
How much could solar panels save in Detroit, Michigan?
At Michigan’s average residential price of 21.73¢ per kWh, a 8.1 kW system sized for an average US home would save about $2,344 in its first year and $79,918 over 25 years. That assumes the home uses all the power the panels make, electricity prices rise 3% a year and panel output falls 0.5% a year. Power sent to the grid is counted at zero. At the US average price of 18.19¢, the first-year figure would be $1,962.
How long do solar panels take to pay back in Detroit, Michigan?
It depends on the installed price on your quote, which varies by installer and system, and we do not have a verified US average to use. Enter your quote in the calculator on this page: Detroit’s solar output and Michigan’s electricity price are already filled in. Every $0.10 per watt adds about $810 to the price of a 8.1 kW system.
What do homes in Detroit, Michigan pay for electricity?
Michigan’s average residential price for January to August 2026 was 21.73¢ per kWh, against 18.19¢ for the US as a whole (EIA Electric Power Monthly, Table 5.6.B). Your own rate depends on your utility and plan, so use the figure from your bill in the calculator if you can.
How does Detroit compare with nearby cities?
Of the 5 nearest cities we cover, Milwaukee (251 miles away) gets the most sun at 1,379 kWh per kW, and Columbus (166 miles away) the least at 1,325 kWh. Detroit gets 1,327 kWh. Within Michigan, it ranks 4th of the 8 cities we cover.
Where do these figures come from?
Solar output is from the PVWatts V8 tool for Detroit’s coordinates in the Census Bureau Gazetteer, checked on 2026-11-11. The electricity price is the EIA residential average for Michigan for January to August 2026, and household use is the EIA average for US homes. Each figure is listed with its source link at the bottom of this page.

Sources for this page

  • Solar output for Detroit: developer.nlr.gov (checked 2026-11-11)PVWatts V8.5.0 outputs.ac_annual for a 1 kW system. Weather data: 997452.csv, station at 42.36999893188477, -83.0999984741211 (1,469 m away).
  • Michigan electricity price: www.eia.gov (checked 2026-11-11)Michigan, residential sector, year-to-date through August 2026. Published as 21.73 cents per kilowatthour.
  • US average price: www.eia.gov (checked 2026-11-11)U.S. Total, residential sector, year-to-date through August 2026. Published as 18.19 cents per kilowatthour.
  • Typical household use: www.eia.gov (checked 2026-11-10)Average annual electricity sold to a U.S. residential utility customer in 2022: 10,791 kWh ("an average of about 899 kWh per month").
  • Panel output loss: docs.nlr.gov (checked 2026-11-10)Median of nearly 2,000 reported degradation rates: "a median value of 0.5%/year" (average 0.8%/year).
  • Location: www2.census.gov (checked 2026-11-10)Census Gazetteer INTPTLAT/INTPTLONG (internal point) for GEOID 2622000, "Detroit city".

Methods and every other figure are on the methodology page.