MI HB5397

Authorizes municipalities with municipal electric utilities to establish residential clean energy programs providing financing for renewable energy systems and energy efficiency improvements on privately owned residential properties.

Permits municipalities to finance energy projects through municipal bonds, utility bill charges, loans from nonprofit corporations, and commercial lender arrangements, with repayment terms not exceeding 180 months or the useful life of the improvement.

Requires municipalities to adopt a resolution of intent, conduct a public hearing, and establish program terms through resolution or ordinance, including interest rate methods, eligibility requirements, application processes, and quality assurance measures.

Allows nonprofit corporations to administer programs and make loans at rates not exceeding the adjusted prime rate plus 4%, with payments collected on electric utility bills as per-meter charges that run with the land to bind future property owners.

Mandates baseline home energy audits before project installation and verification of proper installation and operation after completion, with a program report posted on the municipality's website and available at the municipal clerk's office.