California HOA solar panel rights

An HOA cannot ban solar. Under Civil Code 714, a covenant, restriction, or condition that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.

Only reasonable restrictions are allowed. A restriction is reasonable only if it does not significantly increase the cost or decrease the efficiency of the system. The current limits are a cost increase of no more than $1,000 and an efficiency decrease of no more than 10 percent.

The review has a deadline. A complete solar application is processed like an architectural request and cannot be willfully delayed; if it is not denied in writing within 45 days, it is deemed approved. An association that willfully violates these rules can owe actual damages, a civil penalty of up to $1,000, and attorney fees.

Within the cost and efficiency limits, an association may:

• Apply reasonable placement and aesthetic conditions, as long as they do not raise the cost by more than $1,000 or cut efficiency by more than 10 percent.
• Require the application to go through architectural review, on the 45-day timeline.
• Require a licensed contractor and compliance with health, safety, and building codes.
• For a condo or other multifamily building, apply the separate common-area roof rules in Civil Code 4746 when the panels would sit on a shared roof.

Before you make an offer, read these against Civil Code 714:

• The CC&Rs and architectural rules for any solar ban or conditions heavy enough to function as a ban. Both are red flags under the Solar Rights Act.
• The review procedure and timeline, since a complete application is deemed approved if it is not denied within 45 days.
• Whether the roof is yours or a shared common-area roof, because a common-area roof follows the separate path in Civil Code 4746.
• Recent board and architectural minutes, for how the association handles solar requests.

Solar can be a major part of what a home is worth to a buyer, both for the energy savings and for the cost of the install. A community with an outdated solar ban, an onerous review, or a slow board can raise the cost or delay the project for months, even though the law is on your side.

The rules are in the CC&Rs and the architectural guidelines inside the disclosure packet, not in the listing. An HOA Notes brief reads them, flags any restriction that conflicts with Civil Code 714, and cites the page it came from.

Civil Code section 714 (Solar energy systems). An owner has the right to install a solar energy system on a roof or area where the owner has exclusive use; the association cannot prohibit this, only regulate it for aesthetic or structural reasons consistent with Civil Code section 714. The association may impose reasonable restrictions on placement, aesthetics, and structural review, provided restrictions do not increase the system cost by more than $1,000 or decrease its performance by more than 10 percent.

When you read the disclosure packet, watch for no modifications to roof, no equipment on exterior, board approval required at sole discretion, and prohibited without written consent. HOA Notes flags each of these against the statute and tells you which restrictions are actually enforceable.