What Michigan’s New Energy Policy Act Means for Homeowners Under HOAs

Michigan is carving the path for solar energy in the United States by providing a variety of incentives to homeowners to help reduce upfront costs and by enacting laws like the Homeowners’ Energy Policy Act.

This latter policy, in particular, has sparked conversation because it reduces some of the power homeowners associations/HOAs have. If you’ve never been under an HOA, the Energy Policy Act is critical, as association boards can reject or approve home modifications based on their by-laws. It’s not uncommon for modification requests to be denied, as many associations want to ensure the entire community is aesthetically uniform and that the property value of each home within the community continues to increase. This means that homeowners who were excited to make the switch to solar might be (or have been) declined by their current board.

Now, under this new law, HOAs are prohibited from rejecting any applications/requests to replace, maintain, install, or operate energy-saving modifications, such as solar roofs.

If you do live under an HOA and want to switch to solar, you may have questions. We have answers.

HOA Compliance Timeline

The Homeowners’ Energy Policy Act goes into effect on April 1, 2025.

Homeowner associations in Michigan must adopt a written solar energy policy statement by April 1, 2026. HOAs are also required to provide a copy of the policy to all homeowners within 30 days of adoption (or by request of the owner) and post a copy of the policy on their association website if the HOA has a website. Any content within the policy that goes against what’s outlined in the Energy Policy Act is considered void and unenforceable.

When HOAs Can Prohibit Solar Installations

HOAs can prohibit solar installations within certain parameters. These circumstances include:

• The solar system installation violates the law, as ruled by a court.
• The installed solar system does not substantially conform to the application that was submitted to and approved by the HOA.
• The installed system would a) extend 6 inches beyond the roof, b) fail to conform to the roof’s slope and have a top edge that isn’t parallel to the roof line, and/or c) feature components that are outside of the marketplace standard.
• The panels are being installed in a fenced yard or patio instead of a roof.

Furthermore, HOAs may write specific conditions on the maintenance, repair, replacement, or removal of a damaged or inoperable solar system.

How to Apply for a Solar Energy System Installation

You can start applying for energy-saving modifications on or after April 1, 2025.

The application process for this type of request will work similarly to any other home modification, and you can submit this request either before or after your HOA creates their solar energy policy.

Your HOA will likely have an online system with a function for home modification requests. If they don’t, you will submit a written application to your board. The application should include:

• Your name
• Street address
• Name and contact information of the contractor you’ve chosen to install your system.
• An image showing the layout of the solar energy system.
• A description of the system.

Please note that you may need your neighbor’s approval if your homes are connected. If they’re not, your neighbor doesn’t have any power to prevent you from submitting the application.

If your HOA has an energy policy created, they will have 30 days to approve or deny your request. If they don’t have a policy yet, the deadline is extended to 120 days.

If you previously filled out an application to install a solar roof and were denied by your HOA, you may now re-apply. Your HOA is not allowed to prohibit you from re-applying or require an application fee that’s higher than fees associated with other home modifications.

And, once your solar roof is installed, your HOA is not allowed to ask about your energy usage, impose any conditions that would prevent the solar energy system from operating properly (like planting conveniently placed trees), perform any action that would negatively impact the warranty associated with your solar roof, or require post-installation reporting.

Saving Money With Incentives & Programs

Let’s talk about the elephant in the room—cost. The good news is that there are many incentives and programs available, including:

• MI Solar for All: This EPA-funded program helps disadvantaged and low-income communities access rooftop and community solar.
• Ann Arbor Solarize Program: This program allows homeowners in Ann Arbor to access discounted prices on solar installation through group purchasing.
• Residential Clean Energy Credit: Through this program, residents are able to claim a 30% tax credit on the cost of installing a residential solar system. This tax credit will be reduced in percentage in 2033 and end in 2034.
• Michigan Saves Home Energy Loan Program: This program allows Michigan homeowners to access low-interest, 10-year loans for solar systems. Households can borrow up to $50,000.
• Board of Water & Light Energy Efficiency Rebates (only applicable to Lansing residents): This program gives homeowners in Lansing up to $2,000 in energy rebates for a 4-kW system.
• Property Tax Exemption: Solar systems installed on homes in Michigan are exempted from property tax assessments, meaning that you won’t have to worry about increasing property taxes after installing a solar roof.
• Net Metering: This program allows homeowners to generate energy on their property and sell excess credits back to the grid. Different net metering programs exist, so ask your current utility provider about theirs.

This is not a comprehensive list. You can visit our resources page for more incentives.

Looking Ahead

A recent study highlighted how the impact of climate change may increase the value of rooftop solar panels. The study predicts that the financial value of solar panels in nearly all cities will increase by 19% by the end of the century, primarily due to the higher demand for cooling/air conditioning. Homeowners with solar panels have already seen a reduction in their electric bills in most states. As the demand for energy to cool the home increases, homeowners with solar panels will see a greater percentage of their home’s energy consumption fulfilled by their solar panels. This saving helps overcome the initial cost of solar panels and can increase the value of residential rooftop solar panels in general.

Get Help Going Solar

The cost of living will only continue to increase, resulting in even more expenses for homeowners, but if you make the switch to solar today, you could save up to 70% on your utility bills in the future.

If you’re curious about going solar, contact our experts at Solar Micro Grid today for a no-commitment quote. Since our founding, we’ve been dedicated to empowering homeowners to make that switch to solar. We believe that it can help change our planet for the better while delivering lasting benefits that can help protect you from rising utility costs. Are you ready for a cleaner (and less expensive) future? We know that we are.