Michigan's Homeowners' Energy Policy Act: What Every HOA and Condo Board Must Do Now

What Is Michigan's Homeowners' Energy Policy Act?

Michigan's Homeowners' Energy Policy Act (HEPA), signed into law as Public Act 68 of 2023, took effect April 1, 2025. It fundamentally changes what HOAs and condo associations in Michigan can and cannot do regarding solar panels, solar collectors, and other renewable energy systems on or adjacent to a unit or lot.

The law has two key requirements: (1) every Michigan HOA and condo association must adopt a written solar energy policy, and (2) associations may not unreasonably prohibit or restrict a homeowner's right to install a solar energy system.

If your board has not yet adopted a written solar energy policy, you are out of compliance with Michigan law.

What Does HEPA Actually Require?

**You must have a written policy.** The law requires your association to adopt a formal written policy governing the installation of solar energy systems. This policy must be adopted by your board and communicated to members. It can include reasonable design and placement standards — but it cannot effectively prohibit solar installations.

**You cannot outright ban solar panels.** Under HEPA, any provision in your governing documents (CC&Rs, bylaws, or rules) that purports to prohibit or unreasonably restrict solar energy systems is unenforceable. If your current rules have a blanket ban on modifications to unit exteriors that would prohibit solar, that provision does not protect you from a homeowner's request under HEPA.

**Reasonable restrictions are permitted.** Your policy may include:

• Placement and orientation requirements (e.g., panels must face the rear or not be visible from the street where feasible)
• Aesthetic standards for visible mounting hardware
• Requirements that installations comply with local building codes and be performed by licensed contractors
• Requirements for proof of insurance from the homeowner or installer
• Application and approval procedures (with a reasonable timeline — the law implies you cannot simply sit on applications indefinitely)

What you cannot do:

• Require removal of a system that was properly permitted and installed
• Impose standards that make installation economically infeasible
• Apply approval procedures designed to delay or deny rather than review

What Your Solar Energy Policy Should Include

A compliant Michigan HOA solar energy policy should address:

**Application process.** Define how a homeowner applies, what drawings or specifications they submit, and the timeline for board review. Most attorneys recommend a 30-day review window.

**Design and placement standards.** Specify whether panels may be placed on the front of a building or only on rear-facing roofs. For condo associations, clarify whether limited common elements (like a balcony or patio) may host panels and who owns and maintains those limited common elements.

**Structural review.** Require a structural engineer's certification that the installation does not damage the building's roof or structural integrity, particularly important for attached townhomes and condominiums.

**Insurance.** Require the homeowner to carry additional liability coverage for the installation and name the association as an additional insured where appropriate.

**Removal and restoration.** Address what happens when a unit is sold — does the system convey with the unit or must it be removed? Who is responsible for repairing the roof surface if the system is later removed?

**Maintenance responsibility.** Clarify that the unit owner is responsible for all maintenance, repair, and eventual removal of the solar system.

EV Charging Requests: What Michigan Law Currently Requires

Michigan does not yet have a state law granting HOA homeowners an explicit right to install EV charging equipment comparable to California's law. However, HEPA's passage signals legislative direction, and EV charging requests are increasing sharply — particularly in condo associations.

Your board should proactively develop an EV charging policy rather than responding reactively to individual requests. A proactive policy allows you to:

• Define which parking spaces are eligible for charging equipment
• Set electrical capacity standards to protect shared infrastructure
• Establish cost allocation (is the owner paying for the electrical service upgrade, or does the association share costs?)
• Address what happens to installed equipment when a unit is sold

For communities with shared parking structures, the infrastructure question is significant. A single Level 2 charger requires a 240V, 40-amp dedicated circuit. Many older Michigan condo parking garages were not wired to support multiple EV chargers, and a systematic approach — reserving capacity, establishing a waiting list, allocating electrical panel upgrades equitably — is far better than ad hoc approvals.

Steps Your Board Should Take Now

**Step 1: Check whether your governing documents have a solar prohibition.** Pull your CC&Rs and rules and search for language prohibiting "modifications," "installations," or "alterations" on the exterior of units or on common elements. If your documents don't already carve out solar rights, any blanket exterior modification prohibition is now subject to HEPA override.

**Step 2: Draft and adopt a written solar energy policy.** Work with your management company or HOA attorney to draft a policy that meets HEPA's requirements. Association Property Managers can provide clients with a policy template and coordinate the board vote.

**Step 3: Amend your architectural review guidelines.** Update your ARC guidelines to include a solar application section consistent with your new policy. Ensure your ARC review committee knows how to handle solar applications under the new rules.

**Step 4: Develop an EV charging policy.** Even if no homeowner has requested a charger yet, proactively adopting a policy is far easier than doing it under pressure when the first request arrives.

**Step 5: Communicate with homeowners.** Let your community know that solar installations are now processed under a formal policy and that interested homeowners should submit an application. Clear communication reduces informal requests and board confusion.

Frequently Asked Questions

Does HEPA apply to condominiums or only single-family HOAs?

HEPA applies to both condominium associations and homeowners' associations in Michigan. The practical application differs — for condominiums, the analysis of where solar systems can be placed is more complex because of the distinction between unit space, limited common elements, and general common elements.

What if a homeowner installed solar before we had a policy?

If the installation was properly permitted and not in violation of law at the time it was installed, you have limited ability to require removal. Focus on ensuring any new installations go through your now-formal approval process.

Can we require a homeowner to remove panels if they cause roof damage?

Yes. If a solar installation causes damage to the common element roof, you have remedies under your governing documents and under general property law. Document any damage promptly.

Our documents have an "exterior modification prohibition" — does HEPA override it?

Yes. HEPA expressly provides that provisions in governing documents that prohibit or unreasonably restrict solar energy systems are void and unenforceable to that extent. You cannot rely on a blanket exterior modification rule to deny a compliant solar application.

What are the penalties for noncompliance?

HEPA does not specify per se penalties for associations that fail to adopt a policy, but a homeowner could pursue a declaratory action to establish their right to install a system. More importantly, if your association denies a solar application without a valid policy or applies unreasonable restrictions, you expose the association to legal challenge and potential attorney fee awards.

Association Property Managers helps Michigan HOA and condo boards navigate HEPA compliance, draft solar energy policies, and update architectural review guidelines. Contact us for guidance specific to your community.