Regulating solar panels in HOAs can help preserve property values in the long run. That said, there are certain limitations on an association’s authority when it comes to solar panel restrictions. Staying within these limitations will ensure the association and its board mitigate legal exposure.
The Benefits of Solar Panels in HOAs
In the United States, there is a palpable shift to sustainable and renewable energy sources. Thanks to dwindling resources and the environmental impact of fossil fuels, this shift is growing by the day.
In HOA communities, solar panels are often considered unattractive. Given how these communities rely on uniform aesthetics to preserve property values, it’s easy to see why boards dislike solar devices. Yet, technological advancements have greatly changed the appearance and size of solar panels, making appearance the least of an association’s concerns.
Associations should consider how solar panels can benefit the broader community. Here are the key advantages of HOA solar panels.
- Lower Energy Costs. Solar panels reduce electricity expenses for homeowners. In some communities, they can also offset costs for shared areas like lighting or clubhouses.
- Increased Property Values. Communities with solar systems often attract more buyers.
- Environmental Benefits. Solar energy reduces reliance on fossil fuels. This helps lower the community’s overall carbon footprint.
- Reduced Strain on Utility Infrastructure. When more homes generate their own power, demand on the grid can decrease. This can be helpful during peak usage periods.
- Potential Incentives and Rebates. Some states and utility companies offer tax credits, rebates, or net metering programs. These can make solar more affordable for homeowners.
- Positive Community Image. Communities that support solar adoption often appeal to environmentally conscious buyers. This can improve the HOA’s reputation and marketability.
- Long-term Cost Control. As energy prices rise, solar can help stabilize costs. This benefits both current residents and future homeowners.
Can HOA Deny Solar Panels in Texas?
Whether an association can prohibit solar panels depends on state law. In Texas, an HOA can’t create or enforce rules that stop a homeowner from installing solar panels. If the HOA has a rule that does this, that rule is deemed invalid and unenforceable. This is according to Section 202.010 of the Texas Property Code, also known as the Texas Solar Rights Act.
That said, while HOAs can’t ban solar panels outright, they can restrict them in certain situations. An association can prohibit a solar device if a court finds it unsafe or if it violates a law.
Can the HOA Restrict Solar Panels in Texas?
Even though an association can’t impose a blanket ban on solar panels, it may enforce reasonable rules under Texas law. Here are the permitted restrictions on solar panels in HOAs.
Location Restrictions
An association may prohibit owners from installing solar panels on HOA-owned property or common areas. Rules may also confine installations to the roof and restrict them outside a homeowner’s fenced yard or patio.
Roof Placement Rules
If the solar panels are installed on the roof, the HOA can require the following:
- Panels should not stick out past the roofline.
- Panels are placed in a designated area chosen by the HOA.
- Exception: If another location produces more than 10% additional energy, the owner can use that instead.
- Panels must follow the roof’s slope.
- The top edge must be parallel to the roofline.
- Visible parts (frames, brackets, wiring) must be neutral colors like silver, bronze, or black.
Yard Installation Rules
If the panels are installed in a yard or on a patio, the HOA can limit their height to below the fence line. This is because panels that are taller than the fence line can interfere with the community’s aesthetic appearance.
Warranty Concerns
The HOA can prohibit installation if it would void warranties on the roof or structure. Board members should check with their provider to ensure warranty protection.
Approval Requirements
Board members can require owners to seek approval before installing solar panels in HOAs. This requirement applies only if there is a review process and the board makes its decision within a reasonable timeframe.
Navigating Solar Panels and HOA Rules
It is common for associations to require owners to go through an approval process before installing solar panels. This ensures that the panels are consistent with community standards, local ordinances, and safety regulations.
The application and approval process for solar panels in HOAs generally follows the steps below.
1. Educate Owners on Rules
First, board members must ensure that all owners are aware of the association’s rules regarding solar panels. While ignorance is no excuse, owners are less likely to familiarize themselves with the rules prior to installation. Consistent reminders will help keep violations and disputes to a minimum.
2. Establish a Standard Application Process
The application process should be fair and consistent. Many communities draft a template or form that owners can complete with pertinent details. Boards even ask for supporting documentation, such as blueprints or design plans. It is also important to require owners to hire a licensed and insured contractor for the job.
3. Review Consistently
Board members must review each application with an impartial eye. There is no room for personal judgments, vendettas, biases, and favorites here. Selective enforcement or arbitrary denials can increase the association’s legal risk.
4. Give Owners a Chance to Amend Their Application
If an owner is missing key information in their application, boards should give them a chance to provide the missing details or submit additional documents. The same goes if the application violates a reasonable restriction.
Again, sometimes, owners just aren’t aware of the rules. Offering grace or leeway can help instill goodwill and avoid complaints down the road.
5. Decide Justly
Even with the restrictions above, the HOA can’t deny an application if the homeowner follows all valid rules. The HOA can only deny it if it provides a written reason and the installation would cause serious annoyance or discomfort to neighbors. Even then, if all adjacent neighbors approve the installation in writing, then there should be no problem.
Limiting Liability While Enforcing Rules
Balancing state laws with HOA rules on solar panels can be challenging, especially for inexperienced board members. Seeking legal advice is the best course of action. For that, boards need an HOA lawyer or an HOA management company.
PAMco offers exceptional HOA management services to communities in Central Texas. Call us today at 512-918-8100 or contact us online to learn more!
RELATED ARTICLES:
