Michigan Passes Homeowners' Energy Act, Negating Many HOA Restrictions on Energy-Saving Improvements

The Michigan Legislature recently approved the Homeowners’ Energy Policy Act (the “Act”).  A goal of the Act is to promote energy saving activities and uses by eliminating prohibitions against them.  

When effective, it will negate numerous commonly imposed neighborhood and homeowners’ association restrictions such as prohibitions/restrictions against:

• Clotheslines
• Air or ground source heat pumps
• Insulation
• Rain barrels
• Reflective roofing
• Energy efficient appliances
• Solar water heaters
• Electric vehicle supply equipment
• Energy efficient windows
• Energy efficient insulation materials

In addition, the Act also requires homeowner associations to adopt a written solar energy policy statement within one year of the Act’s effective date. The policies cannot prohibit, or have the effect of prohibiting, the installation of a solar energy system.  They include a process that enables homeowners to install solar energy systems on their property even if they were previous prohibited by community restrictions.

The Act will have significant impacts on homeowner associations.  Associations will not only be required to develop and implement a solar energy policy that complies with the Act, they will also be prevented from enforcing and will likely need to update their restrictions to eliminate prohibitions on energy saving activities or improvements.