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Michigan Solar Contract Cancellation
If the savings pitch does not match your DTE, Consumers Energy, or other Michigan electric bills, you were told exported solar would be credited differently than it actually is, the financing terms are creating problems, the contractor stopped responding, you tried to cancel after an in-home sale, or solar is complicating a home sale, Solar Exit Michigan can help you review the contract, utility records, production assumptions, financing, and sales representations together.
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Solar Exit Michigan will guide you through the process from the moment you become a client, coordinating with the legal professionals supporting your case as appropriate. We know solar contract disputes can be confusing, especially when financing, credit, installers, and utility issues overlap. You will have a team helping you understand what comes next and working toward the best available resolution for your situation.
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Find the Help You Need
Michigan solar disputes can turn on distributed-generation tariffs, legacy net-metering status, utility outflow credits, cancellation rules for in-home sales or financed home improvements, contractor licensing, financing, and what the homeowner was promised. Use the shortcuts below to jump directly to the issue you need to review.
Common Michigan Solar Problems
Solar problems do not always begin and end with the installer. The salesperson, dealer, lender, loan servicer, electric utility, equipment manufacturer, and installation contractor may all play different roles.
Michigan does not give a blanket right to cancel every contract, but specific cancellation rules can apply. The Attorney General says home-solicitation sales can carry a three-business-day cancellation period, while certain financed home-improvement contracts can carry a one-business-day cancellation period. The transaction structure and contract language matter.
Michigan replaced traditional net metering for new customers with distributed-generation programs that separate electricity flowing into the home from electricity exported to the grid. The MPSC has explained that DG outflow generation can be credited at a lower rate, making on-site use more valuable than a salesperson may have implied.
Some Michigan customers remain in legacy net metering for a limited period, but new customers generally participate in the distributed-generation framework. The MPSC says legacy customers can continue under the old program guidelines for 10 years from the date they enrolled.
Michigan licenses residential builders, maintenance-and-alteration contractors, and residential builder salespersons through LARA. The state also separately regulates skilled trades such as electrical work. A solar review should confirm which licenses were required for the actual work performed rather than assume one license covered everything.
A Michigan solar loan, lease, PPA, payoff requirement, transfer condition, or UCC financing statement can create questions during a sale or refinance. The Secretary of State explains that UCC financing statements provide public notice of a security interest in collateral, which is different from automatically treating every solar filing as a mortgage on the entire home.
How It Works
You do not need to know the correct legal, financial, or utility terminology. Tell us what happened and provide the documents you have.
Start with the problem in plain language. You do not need to know whether it is mainly a Michigan DG billing issue, legacy net-metering question, cancellation problem, licensing issue, financing dispute, or home-sale problem.
We compare the sales proposal, signed agreements, utility tariff, interconnection records, cancellation notices, contractor credentials, financing, and timeline.
The next step may involve the utility, MPSC, Attorney General, LARA, lender, title company, tax professional, attorney, or another qualified professional depending on the facts.
Why Michigan Solar Problems Are Different
Michigan moved away from traditional net metering for new customers and into a distributed-generation framework where utility tariffs determine how imported and exported electricity is valued. That difference is central to many savings disputes.
Michigan also has multiple cancellation frameworks rather than one universal solar cancellation statute. Home-solicitation sales and certain financed home-improvement contracts can have different deadlines and notice requirements, so the facts of the sale matter.
On top of that, Michigan uses several licensing systems for residential construction, salespersons, and skilled electrical work. A useful contract review therefore looks at the utility tariff, contract, financing, cancellation notice, and contractor credentials together.
Start With the Electric Utility
Michigan regulated utilities filed updated distributed-generation tariffs to implement Public Act 235, and the MPSC approved those tariffs in March 2025. The homeowner still needs the specific utility tariff, interconnection record, and bill history to understand what happened on the account.
DTE serves a large share of Michigan rooftop-solar customers. A review should compare the current distributed-generation tariff, interconnection status, outflow-credit treatment, and the customer's actual bills with the installer proposal.
Consumers Energy is the other major Michigan utility for rooftop solar. The same basic review applies: interconnection, utility tariff, actual annual production, household usage, and the proposal's assumptions about exported energy.
Indiana Michigan Power, UPPCO, UMERC, Alpena Power, Northern States Power, municipal utilities, and cooperatives can use different tariffs or local rules. The MPSC framework does not mean every Michigan bill looks the same.
How Michigan Distributed Generation Works
Michigan's distributed-generation model is one of the most important state-specific issues to understand. The homeowner can reduce utility purchases by using solar on-site, but exported generation is governed by the utility's outflow-credit tariff rather than a simple assumption that every exported kilowatt-hour receives the full retail rate.
The MPSC has noted that because DG outflow generation can receive a lower credit, it can be advantageous for customers to use more of the energy they generate on-site.
The exact credit calculation comes from the utility tariff. That means DTE, Consumers Energy, and other Michigan utilities should be reviewed using the actual current tariff rather than a generic statewide savings assumption.
A customer must properly interconnect a distributed-generation project before operating it. The interconnection file can help confirm system size, approval timing, and the utility program the customer actually entered.
A common dispute starts when the proposal assumes a higher value for exported energy than the utility ultimately credits. The proposal and tariff should be compared line by line.
Legacy Net Metering vs. Distributed Generation
Michigan's 2016 energy-law update required the MPSC to phase out the former net-metering program and replace it with distributed generation. Once a utility's DG program took effect, new customers could no longer enroll in the old net-metering program.
Existing net-metering customers were allowed to continue under legacy net-metering guidelines for 10 years from the day they enrolled. That means two neighbors with similar solar systems can have different bill-credit treatment simply because they enrolled at different times.
When a salesperson describes a Michigan system as “net metered,” the homeowner should confirm whether that is actually legacy net metering or merely loose sales language for a newer DG arrangement.
Michigan 2023 DG Expansion
Michigan Public Act 235 made the distributed-generation program much larger. The minimum program size for regulated utilities increased from 1% to 10% of average five-year in-state peak load.
The law also increased eligible DG project size up to 550 kW and allows customer generation capacity up to 110% of the customer's electricity consumption for the previous 12 months. Utilities filed updated tariffs, which the MPSC approved in March 2025.
Those changes expand access, but they do not mean every homeowner receives traditional full-retail net metering. The utility tariff still matters for the economic value of exported power.
Michigan Consumer Protections
Michigan's Attorney General cautions that consumers do not have a general right to cancel most contracts. Instead, cancellation rights come from specific laws and transaction types.
For solar, two frameworks can be especially relevant. A sale solicited in the home can fall under the Home Solicitation Sales Act, while certain home-improvement transactions where the consumer agrees to make payments over time to the contractor can fall under the Home Improvement Finance Act.
Because the deadlines differ, homeowners should not rely on a generic “three-day rule” without checking the agreement, the place of sale, the financing structure, and the notice language.
Michigan Cancellation Rights
The Michigan Attorney General says a home-solicitation sale can generally be canceled within three business days by delivering or mailing written notice to the seller. That can matter when a solar salesperson solicited the agreement at the homeowner's residence.
The Attorney General also explains that certain contracts covered by the Home Improvement Finance Act can have a one-business-day cancellation period when the contract is for home improvement and the consumer agrees to make payments to the contractor over time.
These rules can be technical, so the safest review is to identify which law applies and preserve proof of every cancellation attempt.
Contractor and Salesperson Licensing
Michigan licenses residential builders and maintenance-and-alteration contractors through LARA. The state's homeowner guidance says contractors offering work totaling $600 or more in labor and materials generally must be licensed, subject to the scope of the licensing laws.
Michigan also licenses residential builder salespersons, and electrical work is separately regulated as a skilled trade. A rooftop-solar project can therefore involve multiple licensing questions depending on who sold the work and who performed the installation.
The correct review is not simply “is the company licensed?” It is whether the person or company held the license required for the work and role they actually performed.
These roles may be split among several companies, which is why the signed agreement, license records, and utility paperwork should be sorted before conclusions are drawn.
Financing and Savings Assumptions
A solar loan can look affordable on paper when the proposal assumes high utility savings. In Michigan, that calculation is especially sensitive to how much solar is used on-site versus exported under the distributed-generation tariff.
If the salesperson assumed every exported kilowatt-hour would offset utility purchases at the same value, the projected savings may not match the actual DG tariff. Financing terms can then become much harder to carry than expected.
A useful review compares the loan agreement, proposal, production estimate, household usage, utility tariff, and actual bill credits instead of treating the financing payment as a standalone problem.
Tax Credit and Exemption Claims
The federal Residential Clean Energy Credit is no longer available for property placed in service after December 31, 2025 under current IRS guidance. That matters for any 2026 sales pitch that still assumes the homeowner will receive the former 30% federal credit.
Michigan also has a Solar Energy Facility Exemption, but the Department of Treasury describes it as a program for qualified utility-scale solar facilities of at least 2 megawatts. It should not be presented to a typical homeowner as a rooftop-solar property-tax exemption.
Any proposal that relied on a federal credit or vaguely described a Michigan “solar tax exemption” should be compared directly to the official eligibility rules.
Selling or Refinancing With Solar
Michigan's Secretary of State explains that a UCC financing statement gives public notice of a security interest in collateral. Solar lenders or system owners may use UCC filings in ways that create questions for a title company or mortgage lender.
The filing should be reviewed directly because the collateral description matters. Michigan also distinguishes UCC filings from mortgages and certain fixture filings handled through county Registers of Deeds.
A homeowner selling or refinancing should gather the solar agreement, financing documents, payoff or transfer requirements, and any UCC filing before the closing process gets stuck.
If the Solar Company Closed
If the installer or sales company closed or stopped responding, the homeowner should still gather the signed contracts, utility records, warranties, monitoring data, loan or lease records, and any assignment or servicing notices. The utility tariff and financing obligations can continue even after the seller disappears.
Michigan solar problems can usually still be sorted into the right bucket: DG billing issue, legacy net-metering question, contractor problem, cancellation dispute, financing issue, or home-sale problem. Organizing the documents is the first step toward understanding the next move.
Complaint Routing
Michigan has several useful complaint paths, but the correct one depends on whether the problem is utility billing, deceptive sales, contractor licensing, skilled-trade work, financing, or a UCC record.
The MPSC accepts informal and formal complaints involving regulated electricity issues. It can review whether utility rules, tariffs, and laws were followed.
Important: The MPSC cannot resolve every private solar contract or financing dispute.
Official ResourceThe Attorney General provides consumer alerts, complaint intake, and informal mediation for many consumer-business disputes.
Important: The Attorney General does not act as a private attorney for an individual homeowner.
Official ResourceLARA licenses residential builders, maintenance-and-alteration contractors, salespersons, and skilled trades such as electrical professionals.
Important: The applicable license depends on the work and role performed.
Official ResourceThe Secretary of State handles UCC secured-transaction filings and searches, which can be relevant to solar financing and home-sale issues.
Important: A UCC search identifies public filings but does not decide the underlying contract dispute.
Official ResourceUse current IRS guidance to verify placed-in-service timing and whether the Residential Clean Energy Credit applies.
Important: Tax eligibility depends on the taxpayer's facts and current federal law.
Official ResourceMichigan phased out the former net-metering program for new customers and replaced it with distributed generation. Some customers still have legacy net metering, but newer customers generally use DG tariffs with separate outflow-credit treatment.
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Michigan Solar Contract FAQs
The answer often depends on the agreement, financing, timing, utility, project status, and specific facts.
Start My Free ReviewSometimes, but Michigan does not provide one universal cancellation right for every solar contract. The Attorney General says home-solicitation sales can have a three-business-day cancellation period, while certain financed home-improvement contracts can have a one-business-day cancellation period. The transaction and contract need to be reviewed.
Michigan phased out the former net-metering program for new customers and replaced it with distributed generation. Existing legacy net-metering customers can remain under the old program guidelines for 10 years from enrollment, while newer customers generally use DG tariffs.
The MPSC says Public Act 235 increased eligible distributed-generation project size up to 550 kW and allows eligible generation capacity up to 110% of the customer's electricity consumption for the previous 12 months.
Michigan's distributed-generation programs can credit exported or outflow energy at a lower value than electricity used on-site. The exact credit comes from the utility tariff, so the proposal should be compared with the current DTE, Consumers Energy, or other applicable utility schedule.
Licensing depends on the role and work performed. Michigan licenses residential builders, maintenance-and-alteration contractors, residential builder salespersons, and skilled electrical trades. LARA's homeowner guidance says contractors offering residential work totaling $600 or more in labor and materials generally must be licensed.
Yes. A UCC financing statement is public notice of a security interest in collateral and can trigger questions from a title company or mortgage lender. The actual filing and collateral description should be reviewed rather than assuming it is automatically a mortgage on the entire home.
Review the Michigan Solar Deal as a Whole
Michigan solar disputes often turn on whether the salesperson accurately explained distributed generation, whether the homeowner actually has legacy net metering, whether the cancellation rules were followed, and whether the contractor and financing documents match the promises made at the kitchen table. Start with the signed documents and utility history, then build the record from there.
Official Michigan Solar and Consumer Resources
These government, regulator, utility, and first-party resources support the state-specific information on this page.
Official Michigan distributed-generation rules, Public Act 235 implementation, and utility tariff information.
Official implementation information for the 2023 distributed-generation law changes.
Official current participation and capacity statistics for Michigan distributed generation.
Official complaint process for regulated electric utility issues.
Official Michigan guidance on home-solicitation and home-improvement financing cancellation rights.
Official consumer complaint and unfair-practice resources.
Official licensing information for residential builders and maintenance-and-alteration contractors.
Official homeowner guidance on contractor licensing and verification.
Official UCC filing and secured-transaction information for financing and home-sale issues.
Official utility-scale solar facility tax-exemption program information.
Current federal guidance on the termination of the homeowner Residential Clean Energy Credit after December 31, 2025.
State information reviewed August 20, 2026. Laws, regulations, incentive programs, utility policies, agency responsibilities, and solar billing rules may change. Homeowners should verify current requirements with the appropriate agency, utility, lender, tax professional, attorney, or licensed contractor.