Michigan family uses federal incentives to slash electric bills with new rooftop solar array

Clean energy advocates are hosting a series of front-porch ribbon cutting ceremonies at homes across Michigan to celebrate investments from the Biden-Harris administration. 

EAST LANSING—Ann Siegle is a big fan of clean energy.

At her home in East Lansing, Siegle and her husband are counting on a newly installed solar array to generate their electricity—which she hopes will eventually power every appliance in the house. For Siegle, cleaner, solar energy is about protecting the “future of our planet,” she said.

But with federal incentives from the Biden-Harris administration through the Inflation Reduction Act, the Siegles’ shift to solar power is also providing them more than a sense of environmental stewardship in the battle against climate change. Their new rooftop solar array, which was funded in part by a federal tax credit, has also effectively slashed their electricity bills in half.

“We knew that with the federal credit that we had an opportunity to do something that we couldn’t otherwise afford,” Ann Siegle told reporters at a press conference outside of her home on Thursday. “It cut our bills in half. … So we are super, super happy that the federal tax credit was available to us because it has enabled us to do this job. And that’s for our kids’ future, for Michigan’s future, for the future of our country, and our planet. That’s why we did it.”

Ahead of election day, Climate Power and Rewiring America are working with Michigan homeowners—like the Siegles—to host formal “front porch ribbon cutting ceremonies” and celebrate the impact of federal clean energy investments from the Biden-Harris administration, as well as draw attention to Michiganders’ ability to save some money through solar energy. 

US Sen. Debbie Stabenow (D-Michigan) also provided some brief remarks alongside clean energy advocates, state Sen. Sam Singh (D-East Lansing), and state Rep. Penelope Tsernoglou (D-East Lansing) before they used a giant pair of scissors to cut a ribbon on the front porch.

“This is very exciting because it’s a very real tangible way to see where a collection of ideas and policies are really making a change and going to really help us tackle the climate crisis,” Stabenow said. “These new panels are allowing [the Siegle family] to save money on their monthly utility bills and be part of tackling the climate crisis at the same time.”

Here’s the deal:

The Siegles’ said the installation of their new solar array cost them about $26,000, and that it currently provides more than 100% of the electricity that they use to power their home.

But with an $8,500 tax credit from the Inflation Reduction Act to help cover the cost of installing the new rooftop array install, a rebate from their local power provider, as well as ongoing bill credits for the excess power produced, the Siegles’ said they’re already saving cash.

How did they do it?

Through incentives provided through the Inflation Reduction Act, homeowners can reclaim up to 30% of the purchase and installation cost of their solar power systems as a federal tax credit.

There is no maximum amount that can be claimed—and there’s still plenty of cash up for grabs.

Under the law, that incentive is slated to decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034 before expiring in 2035 unless Congress were to renew it.

The Lansing Board of Water & Light, like other power providers, also offered the Siegels’ a rebate of $2,000, which also helped significantly reduce the upfront costs of their solar system. 

The Siegles’ shouldered the rest of the costs, but plan to break even within just a few years.

“A lot of people say Michigan is cloudy,” Siegle said. “We make probably most of our best power from about February onward. And yes, there’s days in January and December and January, we don’t make a lot. But if there’s sun, we’re making power. And our goal over the life of our home is to electrify everything inside of it. So, the appliances that we replace will become electric.”

Those without the cash to invest in a new solar system can still take advantage of the federal incentives through the Michigan Saves and the Rural Energy for America program, which provide grants, loans, and other financing for homeowners who want to make the transition.

Recently signed state laws have also enabled Michigan homeowners to earn credits off their next bill for any extra power generated by their solar systems—which can also help reduce installation costs over time and allow homeowners to recoup their investments even faster.

Additional legislation introduced this year could also create additional state rebates of up to $1,000 for installing solar power and battery storage systems at home, with the goal of lowering costs and creating new incentives for Michiganders who make the shift to renewable energy. 

And since the tax credits were authorized by the Biden-Harris administration, more than 117,000 Michigan families have now reportedly benefited from more than $134 million in tax credits to help lower the costs of clean energy and provide energy efficiency upgrades to their homes. 

“Seeing East Lansing residents get on board with renewable energy is incredibly satisfying, but not surprising,” Tsernoglou said. “We’re a smart and progressive community and we’re stepping up to do our part to reverse the negative impacts of climate change and create a better future.”

‘Keep It Going’

Stabenow, who rolled up to this week’s press conference in an all-electric Chevy Bolt, billed the Inflation Reduction Act and its solar energy incentives as the “strongest, most comprehensive effort” to address the climate crisis and support clean energy manufacturing in US history. 

She also told reporters that she trusts Democratic presidential nominee Kamala Harris to keep up the clean energy momentum from the Biden-Harris administration—and offered a clear warning about how ex-President Donald Trump’s administration could derail those plans.

“Vice President Harris cast the deciding vote on the Inflation Reduction Act in clean energy. If it had not been for her, we would not have this done. So we need to keep it going,” Stabenow said. “Trump is going to go back, embrace the oil companies, let them continue to pollute without any kind of restrictions, and it, frankly, is a disaster for our children and grandchildren.”

A recent report shows that at least 58 new clean energy projects have been announced or moved forward in Michigan since the passage of the Inflation Reduction Act, which has led to at least $25.4 billion in direct investment across Michigan and at least 21,490 new jobs statewide.

Project 2025, however, calls for repealing the Inflation Reduction Act, as well as the Bipartisan Infrastructure Law—which would jeopardize those clean energy investments that are poised to create thousands of new Michigan jobs, including in automotive manufacturing.

Cutting funding for federal infrastructure could also delay or halt critical projects underway across Michigan, leading to deteriorating roads, bridges, and public transportation systems. 

Michiganders can learn more about the IRA credits and use Rewiring America’s online savings calculator to determine how much they can save through the Inflation Reduction Act.

READ MORE: Michigan union workers gear up for ‘Clean Energy Future’

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