Two Years On, the Stakes Are Clear for Solar, HOAs, and Community Energy
When the Homeowners Energy Policy Act (HEPA) took effect on April 1, 2025, it aimed to reshape how homeowner associations handle rooftop solar and other energy-saving technologies. Two years later, the law is opening new doors for solar adoption while introducing questions about design, policy, and long-term value for homeowners.
What the Law Actually Requires
- The Act voids any HOA rule that prohibits or effectively prohibits solar installations on individual homes.
Source: micondolaw.com - HOAs must adopt a written “solar energy policy statement” by April 1, 2026.
Source: micondolaw.com - The law lets HOAs set reasonable aesthetic or safety standards but removes the right to impose blanket bans for solar-ready homeowners.
Source: micondolaw.com - Michigan’s Public Service Commission reported that distributed generation capacity increased from 189.6 MW in 2023 to 222.4 MW in 2024, an increase of more than 17 percent.
Source: michigan.gov
Together, these changes shift more control toward homeowners looking to install solar while adding a new layer of governance for community associations.
Pros and Cons of What You Can Expect
Pros
- Homeowners have clearer legal rights to install rooftop solar when safety and design requirements are met.
- Faster timelines and fewer approval barriers strengthen the financial case for solar investments.
- The law encourages HOAs to modernize their bylaws, creating long-term clarity for future solar adoption.
Cons
- HOAs may struggle to update governing documents and adopt compliant policies by the April 2026 deadline.
- Some boards may introduce design standards that increase installation cost or complexity even if they cannot ban solar directly.
- Growing distributed generation adoption may strain local grid infrastructure or raise concerns about interconnection costs in the future.
These tradeoffs are typical of any major energy transition. Homeowners and boards that plan early will see the smoothest results.
Relatable Examples of the Transition
- A homeowner in southeast Michigan files a solar panel permit days after the HOA revises its policy and receives approval in less than two weeks instead of months.
- A new subdivision in the Grand Rapids region includes conduit and roof mounts pre-installed for future solar use, cutting installation time and preserving visual standards.
- A real estate agent in Lansing notes that listings now highlight “solar ready” or “solar installed” homes more often than in 2023, showing that buyers value clear rights and updated design rules.
These examples show how the law is shaping homeowner behavior, new construction practices, and market expectations across Michigan.
Why This Might Be More Complex Than It Appears
Legal protections are only one part of successful solar adoption. Broader factors continue to influence whether a rooftop system delivers the expected return on investment. Installation cost, rate design, and local grid hosting capacity remain key.
Michigan’s Distributed Generation program under Public Act 235 continues to evolve with gradual increases in participation caps. These adjustments create more opportunities for homeowners to connect systems while signaling the need for utility planning and infrastructure investment.
Source: michigan.gov
Homeowners who assume that legal approval guarantees immediate savings may overlook how usage patterns, financing choices, and time-of-use rates affect performance. The law simplifies access, but long-term benefits still depend on coordination among utilities, installers, and local governments.
Takeaway for Homeowners and HOA Boards
The Homeowners Energy Policy Act created strong rights for Michigan homeowners to pursue rooftop solar. It is already reducing project delays, reshaping HOA governance, and boosting interest in renewable energy.
To get the most from the new framework, homeowners should confirm design compliance, choose experienced installers, and understand rate structures. Boards should review bylaws, update solar policies, and communicate changes clearly to residents.
Communities that approach these updates collaboratively will achieve faster approvals, stronger solar adoption, and higher property satisfaction overall.
Sources:
- Homeowners Energy Policy Act (MCL 559.301 et seq.)
https://micondolaw.com/2024/07/24/hb-5028-passes-a-michigan-hoas-guide-to-solar-panels-and-energy-saving-improvements-under-the-homeowners-energy-policy-act/ - Michigan Law Limits Ability of HOAs to Prohibit Energy-Saving Systems
https://planetdetroit.org/2024/07/michigan-law-homeowners-associations-rooftop-solar/ - Michigan Public Service Commission, Distributed Generation Program Report 2025
https://www.michigan.gov/mpsc/-/media/Project/Websites/mpsc/renewables/Distributed-Generation-Report-2025.pdf - Michigan Public Service Commission, Distributed Generation Program Overview
https://www.michigan.gov/mpsc/consumer/electricity/distributed-generation - EnergySage, Michigan Solar Installation Statistics and Costs
https://www.energysage.com/local-data/solar/mi/
