Alternative Energy Property Tax Exemption

Michigan exempts qualifying solar PV and small wind systems from property tax, so adding one should not raise your property tax bill. The system must be 150 kW or smaller and must offset all or part of the energy used on your property. Check the Michigan Department of Treasury bulletin on alternative energy systems or your local assessor for how the exemption is applied.

You can tell residential and commercial customers that qualifying solar PV and small wind installations are exempt from property tax under Michigan's 2019 H.B. 4465. Systems must be no larger than 150 kW and must offset some or all of the energy used on the property where they are installed. Point customers to the Michigan Department of Treasury bulletin on alternative energy systems for guidance on how the exemption works.

This is a Michigan property tax exemption created by H.B. 4465 in November 2019 for renewable energy systems, covering solar photovoltaics and small wind. Eligible systems are capped at 150 kW and must offset all or part of on-site energy use, and the exemption is available to commercial, residential, state government, and federal government property owners. It works by reducing taxable property value rather than through a funded rebate, and the Michigan Department of Treasury has issued a bulletin explaining the exemption.