What to Watch For Before You Sign Anything
Michigan homeowners are signing solar contracts every week with a clear goal. Lower electric bills and stronger long term energy control. The contract you sign determines whether that promise holds up or turns into unexpected costs and delays. Below are the most common solar contract red flags in Michigan backed by verified requirements and recognized industry standards.
Red Flag 1. Vague System Performance Estimates
A contract that lists yearly production without showing tilt, azimuth, shading percentage and system degradation removes accountability. Michigan production varies widely based on these details. A proper contract must list all assumptions that determine kilowatt hour output.
Red Flag 2. Missing Roof or Structural Disclosures
Many Michigan homes have aging shingles or structural limitations related to snow load. A contract should confirm roof age, roof condition and required upgrades. If these sections are missing, the homeowner absorbs the risk.
Red Flag 3. Warranty Terms With Hidden Limitations
Installers often advertise long warranties but the written terms may exclude major categories such as roof penetrations or labor. Michigan homeowners should confirm separate documents for workmanship, equipment and roof penetration coverage.
Red Flag 4. Unclear Interconnection Responsibility
Michigan utilities require full approval before activation. The contract must clearly state who manages the application, who pays fees and who handles utility requested revisions. If this section lacks detail, the project can stall.
Red Flag 5. Price Changes After Signing
Some contracts allow price adjustments after the site survey. A contract should require mutual written consent for any change. If unilateral pricing language appears, the agreement creates unnecessary exposure for the homeowner.
Red Flag 6. No Installation or Utility Timeline
Permitting, inspections and utility work vary across Michigan. A contract must include estimated timelines for each stage. Missing timelines lead to extended delays.
Red Flag 7. Incentive Language That Creates False Guarantees
Michigan homeowners qualify for the federal Investment Tax Credit. A contract should never guarantee refund outcomes or dollar amounts. Installers must use factual incentive disclosures only.
Red Flag 8. Lease or PPA Terms With Missing Fee Details
Leases and PPAs must disclose annual escalators, early buyout costs, insurance requirements and maintenance responsibility. If these items are missing, long term cost increases are more likely.
Finance Options Michigan Homeowners Should Understand
Most Michigan homeowners use financing rather than paying cash. The most common loans range from six to twenty years with rates that depend on credit profile.
Example Calculation
Average system size in Michigan: 8 kilowatts
Average installed price: $2.80 per watt
Total system cost: 8,000 watts multiplied by $2.80 equals $22,400
Federal Investment Tax Credit at 30% equals $6,720
Net cost after credit equals $15,680
Financed through a fifteen year loan at 4.9% interest
Monthly payment equals $123
Many Michigan households pay between $165 and $230 per month for electricity. A payment of $123 fits below typical utility costs and remains stable for fifteen years which supports predictable budgeting.
Cost Transparency Summary
Original system cost: $22,400
Federal tax credit applied: $6,720
Amount financed: $15,680
Monthly loan payment: $123
Total paid over fifteen years with the federal tax credit: $22,140
Total paid over fifteen years without the Federal Tax Credit: $31,680
What Michigan Homeowners Should Do Before Signing
- Request a Michigan specific production model with all assumptions listed.
- Confirm roof age, structural condition and snow load compliance in writing.
- Request separate warranty documents for workmanship, equipment and roof penetrations.
- Verify who manages all utility interconnection paperwork and fees.
- Require written approval for any change to pricing.
- Request a full installation and utility approval timeline.
- Confirm incentive details use factual disclosure only.
- Review long term financing cost including total paid over the life of the loan.
Bottom Line for Michigan Solar Buyers
Solar provides strong value when the agreement is transparent and complete. Homeowners who recognize contract red flags avoid costly surprises and secure a more dependable long term investment.
Sources
National Renewable Energy Laboratory Residential PV Data
https://www.nrel.gov/pv
Michigan Public Service Commission Distributed Generation Program
https://www.michigan.gov/mpsc
United States Energy Information Administration Michigan Residential Electricity Data
https://www.eia.gov/electricity
Michigan Department of Licensing and Regulatory Affairs Building Code and Snow Load Standards
https://www.michigan.gov/lara
Clean Energy States Alliance Solar Loan Market Analysis
https://www.cesa.org
