Your Michigan Solar Contract Is Costing You More Than You Were Told. Here's How to Fix It.
The short version: Most Michigan solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. Michigan AG Dana Nessel has been active on solar issues. Big solar companies that worked in Michigan have gone bankrupt. Vision Solar is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
There is a line in most Michigan solar contracts that your salesperson never pointed out. It raises your payment every year, automatically, for the life of the agreement. They didn't mention it when they sat at your kitchen table and showed you those savings numbers. They talked about your DTE Energy or Consumers Energy bill. They talked about locking in low rates. They made the math look clean.
But that line is working against you right now. And it's not the only problem.
Michigan winters are long, cloudy, and cold. Your panels produce a fraction of their rated output from November through March. If your salesperson's savings projections used annual averages without showing you what happens in those five months, the numbers were misleading from the start.
Your payments are going up. Your savings aren't coming through. And the company that knocked on your door and made those promises? They might not exist anymore.
The Michigan Attorney General Is Watching Solar
Michigan AG Dana Nessel has been active on solar issues. In 2023, she saved Michigan customers over $2 million in a utility rate case. In October 2025, she joined a group of state AGs suing the federal EPA. The lawsuit is about a $7 billion Solar for All program. Michigan lost $156 million in that cut. In January 2026, Nessel sued BP, Chevron, ExxonMobil, and Shell. She said they used 'capture-and-kill tactics' to slow early solar growth. Michigan also joined the November 2022 Pink Energy lender coalition.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on Michigan homeowners are now named in court filings. If what your salesperson told you doesn't match your contract, you're not alone. You're not crazy. And you have options.
What's actually in your Michigan solar contract
Here's what most Michigan homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they explain what your panels actually produce during a Michigan winter? From November through March, your system generates a fraction of its rated capacity. Snow cover, short days, heavy cloud cover. If your salesperson showed you an annual average and called it "your savings," those numbers masked months where your panels barely offset anything on your DTE or Consumers Energy bill.
Did your salesperson mention Freedom Forever? Freedom Forever was one of the biggest solar installers in the country. They put in about 2 gigawatts of solar across 35 states. On April 15, 2026, they filed Chapter 11 bankruptcy in Delaware. They owe $500 million to $1 billion. Between 50,000 and 100,000 people are owed money. Freedom Forever was still installing in Michigan when they filed. If Freedom Forever installed your system, your contract is still active. But the company behind your warranty is now in bankruptcy limbo.
Freedom Forever isn't alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. A company called Complete Solaria bought them. Sunnova Energy filed Chapter 11 in June 2025. Titan Solar Power filed Chapter 7 in June 2024. Pink Energy, Lumio Holdings, and Vision Solar are on the same list. When your installer goes bankrupt, your payments don't stop. Your contract doesn't cancel. But your warranty usually disappears.
Your rights under Michigan law
Michigan gives you real legal protections. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. If a solar salesperson came to your home and you signed the contract there, both the federal FTC Cooling-Off Rule and Michigan's Home Solicitation Sales Act (MCL Section 445.111 et seq.) give you 3 business days to cancel with no penalty. If your salesperson didn't tell you about this right - and most don't - that affects the enforceability of your agreement. Pull out your contract. If there's no cancellation notice on the front page, that's your answer.
Michigan Consumer Protection Act. MCL Section 445.903 prohibits unfair, unconscionable, or deceptive methods, acts, or practices in trade and commerce. If your solar company made misleading claims about savings, system output, or contract terms, this law applies to what happened at your kitchen table. This isn't a vague guideline - it's an enforceable statute with real consequences for companies that cut corners.
DTE Energy and Consumers Energy rate assumptions. Your savings projections were built around your utility's rate trajectory. If DTE or Consumers Energy rates haven't climbed as fast as your salesperson assumed, the gap between what you were promised and what you're getting grows wider every month. Did your salesperson show you what happens to your "savings" if utility rates stay flat? If not, the picture they painted was built on an assumption, not a fact.
Net metering policy shifts. Michigan's net metering rules determine how much credit you get for excess energy your panels send back to the grid. These rules have changed, and they can change again. If your salesperson projected returns based on net metering terms that no longer apply, the numbers don't hold. Your contract stays the same. The credits don't.
Winter production reality. Michigan gets roughly 65 clear days per year. Your panels produce far less energy from November through March than they do in summer. If your savings projections masked this with annual averages, the month-to-month math never added up. That's not a weather problem - it's a disclosure problem.
Hidden dealer fees in your loan. Most Michigan homeowners with solar loans don't know this. A big chunk of your loan went to the installer as a dealer fee. These fees often run 15 to 30 percent of the loan. They get buried in the balance. The federal Truth in Lending Act says every fee must be listed clearly. When a fee is hidden, it can be a federal violation. And you've been paying interest on money that never went into your system.
What you can do right now
You don't have to figure this out alone. Here are the first steps for Michigan homeowners.
File a complaint with the Michigan Attorney General. Go to https://www.michigan.gov/ag/complaints. Or call 877-765-8388. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in Michigan. Find Out What It's Actually Costing You.
Michigan homeowners have rights under both federal and state consumer protection law - and Michigan's long winters mean your savings math deserves a hard second look. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=michigan)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. Freedom Forever filed Chapter 11 in April 2026. If you signed a solar contract in Michigan, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in Michigan?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under MCL §445.111 et seq. (Home Solicitation Sales Act) and the federal FTC Cooling-Off Rule. Michigan also has Michigan Consumer Protection Act (MCL §445.901 et seq.). That law covers unfair or deceptive sales tactics. You can file a complaint with the Michigan Attorney General. Go to https://www.michigan.gov/ag/complaints or call 877-765-8388. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has Michigan sued any solar companies?
Yes. Michigan AG Dana Nessel has been active on solar issues. In 2023, she saved Michigan customers over $2 million in a utility rate case. In October 2025, she joined a group of state AGs suing the federal EPA. The lawsuit is about a $7 billion Solar for All program. Michigan lost $156 million in that cut. In January 2026, Nessel sued BP, Chevron, ExxonMobil, and Shell. She said they used 'capture-and-kill tactics' to slow early solar growth. Michigan also joined the November 2022 Pink Energy lender coalition.
How does the escalator clause affect my Michigan solar contract?
Most Michigan solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. Michigan's average electricity rate is about 19.52 cents per kilowatt-hour in early 2026. That's above the national average of 17.45 cents. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my Michigan solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my Michigan solar contract?
Did the salesperson come to your home? Then Michigan law gives you 3 business days to cancel. That's under MCL §445.111 et seq. (Home Solicitation Sales Act) and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a Michigan solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in Michigan?
Go to the Michigan Attorney General's website at https://www.michigan.gov/ag/complaints. Or call 877-765-8388. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.