Michigan Attorney General Dana Nessel put out a consumer alert Tuesday telling homeowners to slow down before they sign a contract for rooftop solar, and to check out the company doing the work first (via Michigan Department of Attorney General).
The alert, issued Nov. 10 from Lansing, doesn't argue against solar. It says buyers should weigh the system price, loan payments and utility rates before deciding whether the numbers work for their house.
"A promise of lower energy bills does not tell the whole story," Nessel said in the release. She added that solar companies should be upfront about how a system will perform and what it will cost, so residents aren't stuck with costs they didn't expect.
The advice comes down to five points. Check the company's track record and its state license. Don't count on a promised tax break, because eligibility depends on the buyer's own situation. Read the contract before signing, and ask for a copy and time to review it, particularly when a salesperson fills out the paperwork on a tablet. Talk to the utility, since panels may not cover all of a home's power and there may still be a monthly bill. And ask how long the equipment is expected to last, because loan payments can run longer than some of the parts.
The longer version of the alert on the AG's consumer protection site adds detail. It suggests checking the Better Business Bureau and review sites, comparing the financing payment against the current utility bill, since it can end up higher, and asking about net metering or buyback credits. It also says buyers can talk to a lawyer if contract terms aren't clear.
On equipment life, the alert says inverters, charge controllers and some batteries last about 10 years, while panels and racking last about 20 to 30, and it tells buyers to compare those against the loan term. WILX in Lansing reported the alert Tuesday evening, highlighting the license check, the contract and financing review and the call to the utility.
The tax point carries more weight than it used to. According to IRS guidance on the 2025 federal budget law, the residential clean energy credit under Section 25D isn't allowed for expenditures made after Dec. 31, 2025, and the IRS treats an expenditure as made when the original installation is completed. That means a homeowner who buys and installs a system now generally can't claim that credit on it, whatever a sales pitch says.
The alert also follows a major case from the same office. In July, Nessel sued Climax Solar, a Michigan company that sold residential systems through in-home presentations, along with its owner, Joshua Thompson, and the lenders that financed its sales, in federal court in the Western District of Michigan. The suit alleges reps promised lower bills, tax credits and quick installs, rushed buyers through contracts in one visit, and that lenders released money before systems were finished. It alleges many systems were left unfinished, unsafe or never turned on, with missing permits and failed inspections, and that more than $22 million in fees weren't disclosed as finance charges. The case covers about 1,700 Michigan consumers and roughly $81 million in financed deals. Climax filed for bankruptcy and stopped operating in 2024, according to the AG. Those are allegations, and the AG's announcement included no response from the defendants.
Homeowners with complaints can reach the AG's Consumer Protection Team at 877-765-8388 or through its online complaint form.
Why it matters for Contractors
For solar, roofing and electrical contractors in Michigan, this is a preview of the questions your next customer is going to ask, and honest shops should welcome them. Expect people to look up your license, read your reviews and ask to take the contract home. Make that easy: put your license number on the proposal, hand over a full copy of the contract and financing terms, and don't press for a signature at the kitchen table.
Be careful with savings claims. Base them on the customer's actual usage and current utility rates, explain that there may still be a monthly bill, and don't promise the homeowner a federal tax credit under Section 25D, which the IRS says isn't allowed for installs completed after 2025. If a customer's situation might qualify for something else, send them to a tax professional, as the AG's alert suggests. Give customers realistic equipment lifespans and warranty terms next to the loan term. If you sub out roof or electrical work on solar jobs, make sure permits get pulled and inspections passed, since those were among the failures alleged in the Climax case. Clear paperwork protects you as much as it protects the homeowner.