Typical customer: Not worth it

City of Traverse City and solar

City of Traverse City is a municipal utility serving about 10,097 homes in Michigan. Here's what its rates and export rules mean for solar: for a typical customer, solar is not worth it.

Average price (2026 est.)
14.1¢33% below Michigan average
Typical bill
$74525 kWh a month
Exports credited
~64%Net billing (reduced export credit)
Typical payback
23.2 yrs3 kW, cash

Export rules for City of Traverse City customers

Net billing (reduced export credit) (Michigan rule).

Michigan's IOUs use a 'distributed generation' inflow/outflow tariff: you save the full retail rate on solar you use directly, but power sent to the grid is credited only at roughly the power-supply portion of the rate (about 8-15 cents depending on rate/time).

Michigan net metering details

Solar for a typical City of Traverse City home

System3 kW (61% of 525 kWh/month)
Cost$11,900
First-year savings$473
Payback23.2 years
25-year net$1,216

Uses the utility's average price.

Solar adoption

Homes with solar (2025)
59
Share of customers
0.6%
Residential solar capacity
0 MW
Residential customers
10,097

EIA-861, 2025.

Questions about City of Traverse City and solar

Does City of Traverse City have net metering?

City of Traverse City follows Michigan's rules: Michigan's IOUs use a 'distributed generation' inflow/outflow tariff: you save the full retail rate on solar you use directly, but power sent to the grid is credited only at roughly the power-supply portion of the rate (about 8-15 cents depending on rate/time).

How much does electricity cost with City of Traverse City?

Residential customers paid an average of 13.4¢ per kWh in 2025 (EIA), about 14.1¢ adjusted to 2026. The typical home uses 525 kWh a month, a bill of about $74.

Is solar worth it with City of Traverse City?

For a typical customer, solar is not worth it: a 3 kW system costing about $11,900 pays back in about 23.2 years, with $1,216 net over 25 years.

How many City of Traverse City customers have solar?

About 59 homes had net-metered solar at the end of 2025, roughly 0.6% of residential customers (EIA-861).

Legal name: City of Traverse City - (MI) (EIA ID 19125). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026.