Upper Peninsula Power and solar
Upper Peninsula Power is an investor-owned utility serving about 47,805 homes in Michigan. Here's what its rates and export rules mean for solar: for a typical customer, solar is a close call.
- Average price (2026 est.)
- 29.4¢40% above Michigan average
- Typical bill
- $131447 kWh a month
- Exports credited
- ~31%Net billing (reduced export credit)
- Typical payback
- 14.1 yrs3 kW, cash
Export rules for Upper Peninsula Power 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).
Solar for a typical Upper Peninsula Power home
| System | 3 kW (72% of 447 kWh/month) |
|---|---|
| Cost | $11,900 |
| First-year savings | $789 |
| Payback | 14.1 years |
| 25-year net | $12,785 |
Uses the utility's average price.
Solar adoption
- Homes with solar (2025)
- 285
- Share of customers
- 0.6%
- Residential solar capacity
- 2 MW
- Residential customers
- 47,805
EIA-861, 2025.
Questions about Upper Peninsula Power and solar
Does Upper Peninsula Power have net metering?
Upper Peninsula Power 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 Upper Peninsula Power?
Residential customers paid an average of 28.0¢ per kWh in 2025 (EIA), about 29.4¢ adjusted to 2026. The typical home uses 447 kWh a month, a bill of about $131.
Is solar worth it with Upper Peninsula Power?
For a typical customer, solar is a close call: a 3 kW system costing about $11,900 pays back in about 14.1 years, with $12,785 net over 25 years.
How many Upper Peninsula Power customers have solar?
About 285 homes had net-metered solar at the end of 2025, roughly 0.6% of residential customers (EIA-861).
Legal name: Upper Peninsula Power Company (EIA ID 19578). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026.