Does Michigan Have Community Solar Laws?

Michigan has taken steps toward supporting clean energy, but as of 2026 the state does not yet have a formally enacted statewide community solar law. Several bills have been introduced over the years aiming to establish a legal framework for community solar projects, but none have been fully adopted. These proposals would have created a Michigan community solar program allowing third-party developers to build community solar farms, set subscriber protections, and require utilities to provide bill credits for electricity produced by shared arrays.

Although the state’s legislature has not passed a comprehensive community solar statute, policy momentum is building. Discussions about renewable-energy access, grid modernization, and equitable clean-energy participation continue in Lansing. Many advocacy groups, including environmental organizations, local governments, and business coalitions, have urged Michigan to adopt legislation that mirrors programs in Minnesota, Colorado, Illinois, and Maryland. These are programs known for strong consumer protections and predictable bill-credit structures.

Despite the lack of a formal enabling law, Michigan residents can still access community solar energy through local pilot projects, municipal utility initiatives, cooperative utility programs, and partnerships between cities, nonprofits, and solar developers. These initiatives operate on a smaller scale, typically driven by community-based organizations or local governments rather than statewide regulation. Examples include municipal installations that allow partial subscription allocations for local residents or city-sponsored projects serving public buildings and community institutions.

Low-income provisions, meanwhile, depend on the structure of specific local projects. Without statewide legislation, Michigan does not mandate low- to moderate-income (LMI) participation quotas the way states like Illinois, Colorado, or Maryland do. However, local programs and nonprofit partnerships often incorporate affordability goals such as discounted subscription rates, energy-assistance tie-ins, or priority enrollment for households facing energy-burden challenges.

Several Michigan renewable-energy programs, such as the MI Solar Communities initiative and various low-income weatherization and assistance programs, support clean-energy access indirectly. When paired with community-based solar installations, these programs help create more inclusive entry points for households that cannot afford residential solar or rooftop installations.

In summary, although Michigan does not yet have a statewide community solar law, local and regional efforts have laid a foundation for shared clean-energy access. Renewed legislative interest and growing public support suggest that a statewide framework may eventually emerge to support a full Michigan community solar market.

What is Community Solar?

Community solar is a shared solar-energy model that allows multiple households, renters, businesses, and organizations to participate in a single solar installation. Instead of installing panels on your roof, you subscribe to a portion of the electricity generated by a larger solar array, known as a community solar farm. You receive credits on your electric bill reflecting your share of the project’s output. This approach makes clean-energy access possible even when rooftop residential solar is impractical or impossible.

A community solar project is typically built on open land, a parking canopy, a rooftop, or a brownfield site. The array is then connected to the utility grid. Participants choose a subscription size that aligns with their electricity usage or budget. Because the utility applies bill credits monthly, community solar energy functions like an off-site version of rooftop solar, delivering savings without installation or maintenance requirements.

Community solar is a good option when:

Your roof is shaded, old, or not structurally suitable for panels.
You rent or live in a condo where residential solar is not allowed.
You want access to clean energy with minimal commitment.
You prefer predictable subscription pricing instead of upfront solar installation costs.
You want to support local clean-energy development without managing equipment.

Advantages of community solar over rooftop installations include:

No construction or maintenance on your property.
Flexible subscription sizes that can be scaled up or down over time.
Typically lower entry costs than installing a full residential solar system.
Availability for renters and people who expect to move within a utility’s territory.
Ability to support renewable-energy development in local communities.
In many states with established programs, opportunities for guaranteed bill savings.

Community solar also broadens access to solar energy by serving households that face the highest energy burdens. When structured with affordability in mind, shared solar programs can provide meaningful savings for low-income subscribers, increase community resilience, and support local renewable-energy jobs. Even though Michigan does not yet have statewide rules requiring low-income allocations, the inherent structure of community solar makes it a natural tool for expanding equitable clean-energy access.

Why Community Solar?

Community solar appeals to Michigan homeowners, renters, and businesses because it provides a low-risk, accessible, and flexible path to clean energy. In a state with a mix of historic homes, rental units, rural communities, and multi-family properties, not every customer can install panels. Community solar fills this gap by allowing subscribers to tap into renewable energy without property-specific challenges.

For homeowners, community solar offers the combined benefits of clean energy and predictable savings without rooftop modifications. Many Michigan homeowners have older roofs or roofs shaded by mature trees, conditions that complicate residential solar installation. A community solar subscription solves these barriers by allowing homeowners to access solar energy without construction.

For renters, community solar is often the only viable solar option. Renters typically have no authority to install panels on their building, yet they still want renewable-energy benefits. A subscription to a community solar project enables participation in solar energy while retaining full flexibility if the renter moves.

For businesses, agricultural operations, schools, and institutions, community solar can support sustainability goals while reducing exposure to electricity-price volatility. Organizations may subscribe to larger shares of community solar farms, achieving consistent bill savings and demonstrating environmental leadership.

The benefits of community solar include:

Lower financial barrier: subscribing typically costs far less upfront than installing panels.
No maintenance: the project owner handles repairs, monitoring, insurance, and equipment replacement.
Predictable economics: subscribers receive steady bill credits based on their share of the array’s production.
Community benefits: community solar farms support local jobs, landowner lease payments, and local utility-grid upgrades.
Environmental benefits: the clean energy generated displaces emissions from fossil-fuel electricity.
Flexibility: subscribers can often adjust their subscription size to match usage changes.

In Michigan, community solar is especially valuable because rooftop-solar adoption faces structural barriers such as interconnection constraints, installation costs, and climate-related challenges. Community solar overcomes these limitations by centralizing production and distributing benefits widely.

Are there Community Solar Projects in Michigan?

Even without statewide enabling legislation, Michigan has several community solar farms and shared renewable-energy programs operated by municipal utilities, cooperatives, and local governments. These initiatives demonstrate that Michigan community solar can thrive even before a full statewide program is implemented.

Some of the most notable community solar energy initiatives in Michigan include:

Lansing Board of Water & Light (BWL) Community Solar Program
BWL operates a community solar project that allows customers to purchase solar units representing portions of the array’s output. Participants receive bill credits based on production and can subscribe even if they cannot install rooftop systems. The project serves residential customers, renters, and commercial subscribers.

Traverse City Light & Power Solar Gardens
This municipal utility offers access to community solar subscriptions that let residents support local clean energy and receive ongoing bill credits. The program has been used as a model by other Michigan municipalities.

Cherryland Electric Cooperative Community Solar Farm
Cherryland Electric’s community solar project allows cooperative members to purchase shares of a solar array and receive production-based credits. This program has served as a scalable example of cooperative-driven community clean-energy development.

City-Sponsored or Nonprofit-Backed Community Solar Efforts
Several Michigan cities and nonprofits have developed shared projects on municipal buildings, brownfields, and community centers. These local initiatives often incorporate education, energy-burden reduction, and neighborhood-based inclusion.

Emerging Pilot Projects
A number of organizations across Michigan have announced community-solar feasibility studies and development partnerships in anticipation of potential statewide legalization. These include collaborations with clean-energy nonprofits, utilities exploring subscription-based models, and community groups planning installations on underused land.

Subscription eligibility depends on utility territory. You typically must be a customer of the utility operating the community solar project. Sign-up processes vary, but generally involve selecting a subscription size, reviewing program terms, and authorizing bill-credit transfers. Most Michigan programs offer online enrollment portals or allow customers to sign up through cooperative or municipal-utility offices.

How Does Community Solar Work in Michigan?

The way community solar works in Michigan is fundamentally similar to how shared solar functions across the country. A large solar array, or the community solar project, is built and connected to the electric grid. Customers subscribe to a portion of its output, and their utility assigns bill credits to their accounts based on the electricity produced by their subscribed share.

The basic mechanics are as follows:

Construction and Interconnection – the project developer, utility, or cooperative builds a community solar farm in a location with suitable sunlight and grid access. The array is interconnected with the local utility, just like other distributed-generation facilities.
Subscriber Enrollment – residents, renters, businesses, and organizations choose a subscription size, often measured in kilowatts or in blocks of capacity. The subscription reflects how much of the array’s output the customer will receive.
Monthly Production Tracking: the utility measures the total monthly output of the community solar project. Each subscriber’s share is calculated proportionally according to their subscription size.
Bill Credits – subscribers receive credits on their electricity bills. The credit rate depends on program design. Since Michigan does not yet have a statewide community solar law, credit formulas differ across municipal utilities and cooperatives. However, credits typically represent the value of the solar energy the subscriber’s share produced.
Ongoing Membership – subscribers remain customers of their utility and continue paying their electricity bills. Their subscription simply reduces the cost of electricity by applying bill credits each month. If a subscriber moves within the same utility territory, many programs allow the subscription to transfer. Some also allow credits to roll over each month.
Incentives and Cost Support – without statewide rules, subscribers generally do not claim federal tax incentives directly. Instead, project owners use incentives like the federal investment tax credit, and the financial benefits flow through indirectly via lower subscription pricing. State-level renewable-energy incentives, solar-equipment tax exemptions, and grant programs may also reduce project-development costs.

Community solar in Michigan offers bill savings, predictable subscription terms, and access to local clean energy without rooftop installations. For many residents, particularly renters, households with older homes, and businesses with limited roof space, community solar provides a practical alternative to residential solar.

How Much Does Community Solar Cost in Michigan?

Because Michigan lacks a uniform statewide community solar structure, subscription costs vary across municipal utilities, cooperative utilities, nonprofits, and city-sponsored programs. Still, community solar cost trends in Michigan follow a consistent pattern: lower upfront cost than rooftop systems and predictable monthly savings through bill credits.

Community solar cost structures in Michigan typically fall into two categories:

1. Upfront Subscription Models
In these programs, subscribers pay a one-time fee to purchase blocks or units of solar capacity. Pricing may range from a few hundred dollars for a single block to several thousand dollars for larger subscriptions. The cost covers installation, land use, engineering, maintenance, and long-term operation. The subscriber then receives monthly bill credits for the life of the project.

2. Monthly Subscription Models
Some programs allow customers to subscribe without upfront cost. Instead, the subscriber pays a monthly rate for solar energy, which is priced lower than the value of the bill credit. This difference produces savings. Monthly models make community solar more accessible for renters, low-income households, and customers unable to make upfront payments.

In Michigan, average bill savings from community solar depend on project design and utility crediting rules. Programs typically target 5–10% annual savings compared to standard electricity rates. For example, if a household spends $1,500 per year on electricity, community solar participation might save $75–$150 per year, depending on subscription size and production output.

Community solar cost in Michigan covers:

Solar equipment and installation
Operation and maintenance for the project’s lifetime
Land leasing or rooftop leasing for the project site
Insurance and long-term equipment replacement
Administrative and billing services
Interconnection and grid-integration costs

Compared to residential solar, which may require tens of thousands of dollars for a full rooftop installation, community solar provides a more accessible entry point. Participants can invest a smaller amount, or nothing upfront, while still receiving clean-energy benefits and bill savings. Because Michigan community solar programs tend to be flexible, residents can align subscription sizes with their budget and energy goals.