Solar, wind, and your land: PA 233 and the leasing question

This page explains Michigan law so you know what questions to ask. It isn’t legal advice. Before signing an energy lease or option, talk to your own Michigan attorney, not the developer’s.

Status as of June 2026: the law is in effect. Legal and political challenges continue. People on both sides hold strong views, so this page explains the rules without taking a side.

The short version

This is one of the most contested land-use laws in modern Michigan. Since November 2024, developers of large renewable projects can ask the Michigan Public Service Commission for land-use approval instead of the local government. Public Act 233 of 2023 sets the size limits. “Large” means at least 50 megawatts for solar, 100 MW for wind, or 50 MW for storage. There is one exception. A township or county can keep the decision local by adopting a “compatible renewable energy ordinance,” or CREO. The ordinance cannot be stricter than state standards for setbacks, height, sound, and fencing. Supporters call the law a fix for a clean-energy bottleneck. Dozens of townships and counties call it the end of local control.

How the process works

The developer must approach the local government first. A CREO keeps the decision local. Without one, the developer may take the project to the MPSC. The same can happen after a denial under rules that are stricter than state standards. The MPSC then applies the state standards. One point clears up many rumors: projects below the size limits stay fully under local zoning. The community solar array and the single farm turbine were never part of this law.

The litigation, dated and neutral

Roughly eighty townships and several counties challenged the MPSC order that put the law into practice. On May 8, 2026, the Michigan Court of Appeals upheld most of it, including the commission’s power to run the permit process. The court rejected some narrower parts. One involved a notice timeline that, the judges said, gave local governments too little time. Separately, Citizens for Local Choice suspended its 2026 signature drive for a ballot proposal to restore local control. The group may restart it later. Appeals and rule changes continue. The MPSC siting pages and the Michigan Townships Association track updates from their different viewpoints.

If you’re offered a lease (the genuinely useful part)

Solar and wind leases often last for decades. They may cover option periods, rent per acre, future rent increases, and cleanup duties. PA 233 also requires plans for taking a project down. Ask these questions before signing:

• Who pays the taxes, and what happens to your assessment?
• What happens to your PA 116 or Qualified Forest enrollment? Enrolled land generally must leave those programs before hosting a project. Leaving can trigger repayment.
• What does your mortgage say? Many require lender consent.
• What exactly comes back at decommissioning, and who guarantees it?

One practical safeguard belongs in every negotiation: have your own attorney review a developer’s option before you sign it. The option is cheap for the developer and binding for you.

If you’re the neighbor

When the MPSC has authority, its process includes public comment. Locally, ask whether your township has a CREO and what it says. State rules for setbacks, sound, fencing, and cleanup apply under both paths. The fight is over who decides, not whether standards exist.

Who decides

Your township or county if it has a compatible ordinance; the MPSC if not. The Court of Appeals is still refereeing the edges. Zoning covers everything below the thresholds.

The official sources

The MPSC’s facility-siting pages carry the rules and active cases. The Michigan Townships Association presents the local-government perspective. MSU Extension and University of Michigan guidance helps local officials draft CREOs. Start at Owning Land in Michigan.