By Asbury Roofing & Solar | Oakland County, MI | 9 min read
The #1 reason Oakland County homeowners don’t go solar or replace their roof isn’t the decision. It’s the check. Here’s how to make that check disappear — and replace it with something that actually works in your favor.
Let’s address the elephant in the room right away.
A new roof runs $10,000–$18,000. A solar system runs $15,000–$30,000. Together, you’re looking at $25,000–$48,000 before incentives. That’s a number that makes most people close the browser tab and go back to paying DTE $180 a month indefinitely.
Here’s what those people are missing: almost nobody pays that number. And for homeowners who structure the deal correctly, the monthly cost of financing a new roof and solar system can be lower than what they’re currently paying in electricity bills — while building equity in a home asset that pays them back for 25 years.
This isn’t creative accounting. It’s how the math actually works when you understand what’s available. Let’s break every piece of it down.
First: The Incentives That Reduce Your Starting Number
Before we talk financing, let’s establish what you’re actually financing — because the sticker price and the net price are very different numbers.
The Federal Investment Tax Credit (ITC) — 30% This is the biggest lever available to Oakland County homeowners right now. The federal government gives you a tax credit equal to 30% of your total solar installation cost — dollar for dollar off your federal tax liability. Not a deduction that reduces your taxable income. An actual credit that reduces what you owe.
On a $22,000 solar system, that’s $6,600 back. On a $28,000 system, that’s $8,400. You receive this credit when you file your taxes for the year the system was installed — meaning a system installed in 2024 delivers the credit on your 2024 tax return filed in early 2025.
The ITC is locked in at 30% through 2032 under the Inflation Reduction Act. It steps down after that. There is no compelling reason to wait.
Michigan Property Tax Exemption Michigan law exempts solar energy systems from property tax assessment. Your home’s value goes up when you add solar — typically around 4% according to Zillow data — but your property tax bill doesn’t. That’s a real financial benefit that most homeowners in other states don’t get.
Net Metering Credits — DTE & Consumers Energy Both major Michigan utilities are required to credit your account for excess solar generation returned to the grid. In strong production months — spring and summer — many Oakland County homeowners with properly sized systems eliminate their electric bill entirely and bank credits that offset winter months. Your effective electricity cost drops to near zero.
Michigan Sales Tax Exemption Michigan exempts solar energy equipment from the state’s 6% sales tax. On a $22,000 system, that’s $1,320 you’re not paying.
Add it up: On a $22,000 solar system, between the federal tax credit ($6,600), the sales tax exemption ($1,320), and the property tax benefit — you’re already looking at $8,000+ in direct financial benefit before you’ve made a single loan payment. Your effective starting price is closer to $14,000. That changes the financing conversation entirely.
The Financing Options, All of Them
Option 1: Solar Loan — The Most Popular Choice
A dedicated solar loan is the most common financing path for Oakland County homeowners — and for good reason. Here’s how it works:
You finance the full system cost at a fixed interest rate over 10–25 years. Monthly payments are predictable. You own the system outright from day one, which means you capture 100% of the tax credit, all net metering credits, and the full home value increase.
The key number to understand: many solar loans are structured so that your monthly payment — even before the tax credit — is comparable to or lower than your current electric bill. When you apply the 30% tax credit to your loan principal in year one, your effective payment drops further.
Example for an Oakland County homeowner:
- Current electric bill: $160/month ($1,920/year)
- Solar system cost: $22,000
- Monthly loan payment (25-year, 6.99%): ~$155/month
- After applying $6,600 tax credit to principal: effective payment drops to ~$107/month
- Net metering reduces or eliminates remaining utility bill
- Result: You’re paying less per month than your old electric bill and owning an asset
Option 2: Roof + Solar Bundled Financing
This is the option most relevant to homeowners who need both a new roof and solar — which describes a significant percentage of Oakland County homes built in the 1980s and 1990s.
Bundled financing combines your roof replacement and solar installation into a single loan with a single monthly payment. The advantages:
One application, one approval, one payment. No juggling separate loans from separate contractors. The combined project qualifies for streamlined financing that’s often more favorable than trying to finance each component separately.
The solar portion still qualifies for the 30% federal tax credit regardless of being bundled with the roof. The tax credit applies to the solar system cost within the bundle — reducing your effective principal significantly in year one.
Asbury works with financing partners that specialize in exactly this structure for Oakland County homeowners. We’ll help you understand what your bundled payment looks like before you commit to anything.
Option 3: PACE Financing (Property Assessed Clean Energy)
PACE is a financing mechanism that’s worth understanding even if it’s not right for everyone. Here’s how it works:
Rather than a traditional loan, PACE financing is repaid as an assessment on your property taxes. The repayment is tied to your home, not to you personally — meaning it transfers with the home if you sell. There’s no traditional credit qualification process, which makes it accessible to homeowners who don’t qualify for conventional solar loans.
The considerations: PACE assessments are senior to your mortgage in some structures, which can create complications with your mortgage lender. Not all Michigan municipalities have active PACE programs. And the effective interest rates can be higher than conventional solar loans for well-qualified borrowers.
PACE is worth exploring if conventional financing isn’t available to you. For homeowners who qualify for standard solar loans, those typically offer better terms.
Option 4: Home Equity Loan or HELOC
If you have meaningful equity in your Oakland County home — which many homeowners do given Michigan’s appreciation over the past decade — a home equity loan or line of credit is a legitimate financing path for roof and solar projects.
Advantages: typically lower interest rates than dedicated solar loans, interest may be tax deductible if used for home improvements, flexible terms.
Considerations: you’re using your home as collateral, which carries inherent risk. And the application and approval process is more involved than a dedicated solar loan.
For homeowners with strong equity and good credit, a HELOC at a competitive rate can be the lowest total cost financing option available. Worth a conversation with your bank or credit union alongside whatever solar financing Asbury can offer.
Option 5: Cash Purchase
If you have the capital available, a cash purchase delivers the strongest long-term return. No interest cost, immediate full ownership, full tax credit in year one, maximum lifetime savings.
The math on a cash purchase for an Oakland County homeowner:
- System cost: $22,000
- Minus 30% tax credit: -$6,600
- Net cost: $15,400
- Annual electricity savings: ~$1,500–$1,800
- Payback period: 8–10 years
- Years of essentially free electricity after payback: 15–20
- Total lifetime savings: $30,000–$45,000+
If you have the capital and plan to stay in your home, cash is king. If you don’t — or if you’d rather deploy that capital elsewhere — the loan options above deliver a strong return at manageable monthly cost.
🔗 Get Your Personalized Financing Options from Asbury → Free assessment. Real numbers for your specific home and budget. No obligation.
The Tax Credit Mechanics: How to Actually Capture It
This is the piece that trips people up most often — so let’s be precise about how the 30% federal tax credit actually works.
You must have federal tax liability to use it. The ITC is a nonrefundable tax credit — meaning it reduces what you owe in federal taxes, but it doesn’t generate a refund beyond your liability. If your federal tax bill for the year is $4,000 and your credit is $6,600, you eliminate your $4,000 liability and carry the remaining $2,600 forward to the following tax year.
It applies in the year of installation. A system installed and operational in 2024 generates the credit on your 2024 federal return. Timing your installation to a year when you have higher than normal tax liability — a year with a large capital gain, a business income spike, or other elevated taxable income — maximizes the immediate benefit.
It applies to the full installed cost. Equipment, labor, permitting, inspection fees — all of it counts toward the credit calculation. Keep all documentation from your installation.
Work with your tax professional. The ITC is straightforward but your specific tax situation affects how you capture it most efficiently. Asbury will provide all the documentation you need; your accountant handles the filing mechanics.
The Monthly Payment Reality Check: Oakland County Edition
Let’s run three real scenarios so you can see what this actually looks like for different Oakland County homeowners:
Scenario A — Solar Only, Newer Roof Home: 2,000 sq ft in Troy, roof replaced 8 years ago Current electric bill: $145/month Solar system: 8kW, $21,000 Loan: 25-year at 6.99% = $148/month Tax credit ($6,300) applied to principal → effective payment: ~$103/month Net metering offset: ~$80–$100/month reduction in remaining utility bill Monthly delta: Paying ~$103 instead of $145. Saving ~$42/month from day one. Owning an asset worth $21,000.
Scenario B — Roof + Solar Bundle, Aging Roof Home: 2,400 sq ft in Rochester Hills, roof 22 years old Current electric bill: $165/month Roof replacement: $14,000 | Solar system: $24,000 | Bundle: $38,000 Solar tax credit (30% of $24,000): $7,200 Loan on $38,000 at 6.99% over 25 years: ~$268/month After tax credit applied to principal: effective payment ~$217/month Reduced utility bill from net metering: ~$100–$130/month Monthly delta: Paying ~$217 for roof + solar instead of ~$165 for electricity alone. For roughly $52/month more, you get a new roof, a solar system, and an asset — while your electricity costs drop by ~$100+/month.
Scenario C — Cash Purchase, Roof + Solar Home: 1,800 sq ft in Waterford, planning to stay 20+ years Cash available: $40,000 Roof + solar bundle: $36,000 Tax credit: $7,200 back at tax time Net cost year one: $28,800 Annual electricity savings: ~$1,600 Payback period: ~18 years on full bundle (12 years on solar portion alone) Remaining free electricity years: 7–12+ Result: Eliminated electric bill, new roof, increased home value by ~$15,000–$20,000.
The Conversation to Have With Asbury Before You Decide Anything
Here’s what Asbury’s free inspection and consultation actually covers on the financing side:
We look at your home, assess your roof condition and solar potential, and give you a specific system recommendation sized for your actual energy usage. Then we run the financing scenarios that apply to your situation — loan options, bundled pricing if the roof needs work, tax credit timing based on your situation — so you’re looking at real monthly numbers for your specific home, not ballpark estimates.
You leave knowing exactly what it costs, exactly what you’d pay monthly under different financing structures, and exactly what you’d save. No pressure to decide on the spot. No manufactured urgency.
The goal is for you to have complete information — because the math, when you actually see it clearly, tends to make the decision fairly straightforward.
FAQs: Roof & Solar Financing in Oakland County
Can I finance a roof replacement and solar together even if my roof isn’t in terrible shape? Yes. If your roof has less than 10 years of useful life remaining, bundling now is almost always smarter than financing solar separately and then paying for roof removal/reinstallation later.
What credit score do I need for solar financing? Requirements vary by lender. Most dedicated solar loan programs work with scores of 640+, with better rates available above 700. PACE financing has minimal credit requirements. Asbury works with multiple financing partners to find the best fit for your situation.
Does the 30% tax credit apply to the roof portion of a bundle? The 30% ITC applies specifically to the solar system cost within the bundle — not to the roof replacement portion. However, if the roof replacement is directly necessary to support the solar installation, a portion of those costs may qualify. Your tax professional should evaluate this for your specific situation.
What happens to my loan if I sell my home? Most solar loans are personal loans that you pay off at closing — the same way you’d handle any other debt when selling. The home value increase from solar typically covers or exceeds the remaining loan balance for homeowners who sell after several years.
How long does financing approval take? Most dedicated solar loan approvals are completed within 24–48 hours. The inspection, system design, and permitting process runs parallel to financing, so approval timing rarely delays your project.
The check that stops most Oakland County homeowners from acting isn’t as big as they think — and in many cases, the monthly cost of financing the right roof and solar package is lower than what they’re currently paying in electricity alone.
The incentives are real. The financing is accessible. The math works.
The only thing left is running your specific numbers.
🔗 Book Your Free Inspection & Financing Consultation → Asbury Roofing & Solar — Roofing, Solar, Siding & Gutters. Serving all of Oakland County, MI.