For Michigan homeowners interested in solar panels and battery storage, one of the first questions is usually: How do I pay for solar?
The good news is that Michigan homeowners have more solar financing choices than many people realize. Options include the Stellar Solar Energy Service Agreement, local credit-union financing, national solar loans, home-equity loans, solar leases and power purchase agreements, as well as cash purchases.
Here is a look at the major Michigan solar financing options available in 2026.
What is the best way to finance solar panels in Michigan?
There is no single financing option that works for every homeowner. The best choice depends on the cost of the solar system, credit score, available home equity, whether the homeowner wants to own the equipment and how long they expect to stay in the home
| Maximum Loan | Rates As Low As | Maximum Term | |
| TRUE Community Credit Union | $75,000 | 5.99% | 15 years |
| Christian Financial Credit Union | $50,000 | 6.24% | 15 years |
| Genisys Credit Union | $50,000 | 6.49% | 15 years |
| LAFCU | $75,000 | 6.49% | 15 years |
| TBA Credit Union | $60,000 | 6.49% | 15 years |
| One Detroit Credit Union | $30,000 | 6.75% | 10 years |
| Lake Michigan Credit Union | $40,000 | 6.99% | 15 years |
| MSU Federal Credit Union | $100,000 | Contact lender | 15 years |
Actual rates and terms depend on creditworthiness, market conditions and geographic eligibility. Some lenders serve the entire state while others are limited to specific counties or the Lower Peninsula.
Home-Equity Loans and HELOCs for Michigan Solar
Another option is using the equity in your home.
Michigan banks and credit unions offer both home-equity loans and home-equity lines of credit, or HELOCs, which can be used for major home improvements such as solar.
For example, Michigan-based LOC Credit Union currently advertises home-equity loans with terms extending as long as 20 years and borrowing amounts potentially reaching $300,000, depending on the property, equity and borrower qualifications.
A home-equity loan may offer an attractive interest rate because the loan is secured by the house. However, unlike an unsecured solar loan, the homeowner is pledging the home as collateral.
Paying Cash for Solar
Cash remains the simplest solar financing option.
Paying cash eliminates interest charges, financing fees and monthly loan payments and generally produces the greatest long-term financial return.
The Michigan Public Service Commission lists both cash purchases and privately obtained loans among the standard ways Michigan consumers can purchase residential solar.
For homeowners with adequate savings who do not want to take on additional debt, cash can be the most economical choice.
Pre-Paid Solar Leases
Stellar Solar Michigan offers up to a 30% up front discount with it’s Energy Service Agreement on a pre-paid solar and battery lease that transfers ownership to the homeowner after a short term.
What Is the Best Michigan Solar Financing Option?
The Stellar Solar Energy Service Agreement is by far the best option for Michigan homeowners.