Michigan passed a landmark HOA solar access law in July 2024 — as of that date, your HOA can no longer ban solar panels on your property. This single law change opened the door for hundreds of thousands of Michigan homeowners in planned communities who were previously blocked from going solar. Combined with strong net billing programs through DTE Energy and Consumers Energy, 2026 is the best time yet to go solar in Michigan.
Michigan's New HOA Solar Rights Law (2024)
Michigan's Public Act 183 of 2024, effective July 2024, fundamentally changed the rights of Michigan homeowners in HOA-governed communities:
- HOAs cannot ban solar: Michigan law now prohibits homeowner associations from adopting or enforcing rules that prohibit solar energy systems
- Reasonable restrictions only: HOAs may impose reasonable aesthetic restrictions (location, color, visibility) but cannot categorically block solar
- Legal protection: Homeowners have the right to install solar over HOA objections that don't meet the "reasonable restriction" standard
- Legacy Energy's experience: Our team has navigated HOA approval processes across Michigan and has helped dozens of customers in planned communities successfully install solar after the 2024 law change
If you live in a Michigan HOA community and were previously told you couldn't install solar, the law has changed. Legacy Energy handles all HOA communications and approval documentation as part of our standard installation process — we have pre-built templates and procedures specifically for Michigan HOA situations.
Federal ITC in Michigan
The federal investment tax credit landscape in 2026 is the same as other states:
- Residential ITC (Section 25D): Expired December 31, 2025 per the "One Big Beautiful Bill." Michigan homeowners cannot claim the 30% residential credit on 2026 installations.
- Commercial ITC (Section 48E): Fully active at 30% through 2027. Michigan business owners, commercial property owners, and agricultural operations with solar installations retain the full 30% federal credit.
Michigan businesses and commercial properties should act before the commercial ITC window closes in 2027. The combination of the 30% credit and MACRS 5-year depreciation creates payback periods as short as 3–4 years for Michigan commercial and industrial solar installations.
Michigan Net Billing (Distributed Generation Program)
Michigan does not have traditional net metering — instead, the state operates a Distributed Generation (DG) program that provides net billing credits for residential solar customers. Under this program:
- Export credits: Solar energy exported to the grid receives a credit set by the Michigan Public Service Commission (MPSC), applied to your monthly utility bill
- Credit carryover: Unused monthly credits roll forward to subsequent billing periods
- Annual true-up: At the end of the program year, any remaining excess credits are paid out at a lower rate — so system sizing matters
- Eligible utilities: DTE Energy and Consumers Energy are the primary utilities offering the DG program statewide
Legacy Energy sizes Michigan systems carefully to optimize annual production against annual consumption — avoiding excess generation that would be credited at the lower annual true-up rate. This system-sizing discipline is especially important in Michigan given the seasonal variation in solar production.
Lansing Board of Water & Light
LBW&L customers are the most incentivized solar buyers in Michigan. The Lansing Board of Water & Light offers a rebate program that stands out as the best direct cash incentive available in the state:
- Rebate amount: $500 per kilowatt of installed solar capacity
- Maximum rebate: Up to $2,000 for residential installations
- Application requirement: Must apply before installation — applications received after installation will not be accepted
- Program availability: First-come, first-served. Program capacity is limited annually.
For a typical 8 kW LBW&L residential system: 8 kW × $500 = $4,000 — but capped at $2,000. Even the capped $2,000 represents a meaningful upfront reduction on a $20,000–$30,000 system. Legacy Energy files all LBW&L rebate applications before breaking ground.
Other Michigan Utility Programs
| Utility | Program | Notes |
|---|---|---|
| DTE Energy | DG Net Billing + SolarCurrents | Community solar subscription also available |
| Consumers Energy | DG Net Billing | Statewide program for residential solar |
| Lansing BWL | $500/kW rebate (up to $2,000) | Best rebate in Michigan — pre-approval required |
| Cherryland Electric Coop | Programs available | Confirm current terms with Legacy Energy |
| Great Lakes Energy | Net metering eligible | Rural co-op serving northern MI |
Property Tax Considerations in Michigan
Michigan offers a potential property tax benefit for solar installations under Public Act 261 (Michigan's 100% Renewable Energy Exemption). Key points:
- Solar installations may qualify for property tax exemption under PA 261 — but eligibility depends on your local assessor's interpretation and application
- The exemption is not automatically applied — it requires assessment-level review
- Legacy Energy advises all Michigan customers to contact their local assessor after installation and to retain Legacy Energy's documentation to support the exemption application
- Some Michigan counties have been more consistently granting the exemption than others — Legacy Energy can advise on what to expect in your specific county
Get a free Michigan solar assessment from Legacy Energy
We handle HOA approvals, utility interconnection applications, LBW&L rebate filings, and property tax exemption documentation — all included in our standard process.
Michigan Solar Challenges & Solutions
Michigan's northern latitude and cloudy winters are the most common objections we hear from Michigan homeowners. Here's the reality:
- Michigan averages 4.4 peak sun hours — lower than southern states, but still very viable for solar. Germany — one of the world's leading solar markets — has less sun than Michigan, and millions of German homes produce solar profitably.
- Solution — size for annual production: Legacy Energy sizes Michigan systems based on your 12-month energy usage, not peak summer months. A slightly larger system compensates for the lower winter sun hours.
- Battery storage helps maximize self-consumption: In Michigan's net billing program, the export rate is lower than the retail rate. A battery allows you to store afternoon solar production and use it in the evening — avoiding the grid entirely during peak-cost hours.
- Rate escalation works in your favor: Michigan utilities (DTE and Consumers Energy) have raised rates 4%+ annually in recent years. Every year of delay is a year of foregone protection against rate increases.
Average Savings in Michigan
Based on Legacy Energy installations across Michigan in 2025–2026:
- Monthly savings: $80–$160 depending on system size, utility, and usage
- Payback period: 9–12 years (longer than southern states due to lower sun hours and no state credit, but still well within the 25-year panel warranty period)
- 25-year total savings: $25,000–$45,000 with typical 4% annual rate escalation
- Rate escalation improvement: With DTE and Consumers Energy raising rates at 4%+ annually, each year of delay narrows the payback period for future buyers but increases the savings for those who have already installed
Michigan homeowners who installed solar in 2019–2021 are now seeing payback periods in the 8–9 year range — ahead of original projections — because utility rates increased faster than expected. The same dynamic will benefit 2026 installers in the years ahead.
