Utah HOA rejects Solar Panel Installation on Residential Property

[notemily]

So, my first post was a general question about net metering and I got an immediate response form the Forum - Thank You!

My next question is going to be difficult ... we now have three quotes on putting a residential solar panel array on our roof. We contacted our HOA because one of the installers indicated that had issues with HOAs before. The answer I got back from the HOA president was "As for solar panels, I'm afraid this is something we discourage. Unfortunately, we have rejected a couple of previous requests." I still have more questions to the Board Review Committee that haven't been answered yet so I don't have all the details on what we will need to submit for their review. But, knowing that there are no residential solar panel arrays in the current HOA, does anyone have any advice short of moving somewhere else or legal action on how to proceed? I have read a lot of similar concerns and issues on the internet and it seems that very few people are successful against archaic HOAs operating against CCRs that are 40+ years old ... boy is this maddening ...

Thanks!

[Volusiano]

Isn't there any Utah law about roof top solar installation that overrides HOA CC&R? That's how it works in AZ. We still need to submit and get HOA approval for roof top solar installation in AZ. But unless there's justifiable reasons to turn down the submission, HOA can't really say no because AZ state law on this trumps HOA CC&R.

[OvertheSun]

Utah Law

Utah code 10-9a-610. Restrictions for solar and other energy devices.

The land use authority may refuse to approve or renew any plat, subdivision plan, or dedication of any street or other ground, if deed restrictions, covenants, or similar binding agreements running with the land for the lots or parcels covered by the plat or subdivision prohibit or have the effect of prohibiting reasonably sited and designed solar collectors, clotheslines, or other energy devices based on renewable resources from being installed on buildings erected on lots or parcels covered by the plat or subdivision.

This has the effect of allowing the city, town, or county council to override the CC&Rs of your HOA and require that the HOA allow solar, but does not compel them to do so. Check first with the authority that approves CC&Rs to see if they have a policy toward solar restrictions. You may need to get active in that authority and get them to require approval of solar, perhaps with limited restrictions, or get your state legislature to change the law.

Alternatives would be to try to change your CC&Rs by a vote of the homeowners. You could also contact a Utah attorney to see if there's a legal basis for individually challenging the CC&Rs, perhaps as arbitrary and capricious. I'm not a Utah attorney, but generally speaking there has to be some reason for the restriction and you should have the opportunity to appeal the decision based on that reason. For example, if the reason for rejecting solar is that it lowers property values, you could provide evidence that solar actually increases property values. Also, CC&Rs generally have to be applied consistently. So if someone else in your community received HOA approval for solar, find out what they did and if you do the same, and you still don't get approval, you would have grounds for challenging their application of the rule.

[Ian S]

First thing to do is to see if the problem is in the CC&R's or if it's been up to the Board itself. Depending on the HOA, the Board may have significant leeway in what it deems suitable in the area of architecture changes. I've had a lot of experience on HOA Boards and it's often possible to get stuff done through diplomacy. Once you get combative, hackles get raised and the discourse goes downhill from there. The only winners then are the attorneys.

Failing that, get a slate of pro-solar candidates and take control of the Board! Now, if the problem lies in the CC&R's that's a bit harder to rectify because it will require a vote of the homeowners and can cost the HOA money because of the paperwork required. So you still would have to get like-minded individuals to help. I may be biased but I don't think visible solar panels detract in any way from the look of a home. Fortunately, I live in Phoenix and benefit from the strong pro-solar legal framework. It also didn't hurt that I'm the HOA treasurer. Still, I went through the review process for approval. The only negative feedback we got was from a neighbor outside the HOA who didn't care for the look from his back yard. I don't actually blame him because he was looking at the backside of a flat roof installation. In his case though, the panels were far enough away that a couple of judiciously located plantings in his backyard could have obscured the panels. He has since moved and the house is on the market and overpriced at $1.2 Million.

[inetdog]

So, my first post was a general question about net metering and I got an immediate response form the Forum - Thank You!

My next question is going to be difficult ... we now have three quotes on putting a residential solar panel array on our roof. We contacted our HOA because one of the installers indicated that had issues with HOAs before. The answer I got back from the HOA president was "As for solar panels, I'm afraid this is something we discourage. Unfortunately, we have rejected a couple of previous requests." I still have more questions to the Board Review Committee that haven't been answered yet so I don't have all the details on what we will need to submit for their review. But, knowing that there are no residential solar panel arrays in the current HOA, does anyone have any advice short of moving somewhere else or legal action on how to proceed? I have read a lot of similar concerns and issues on the internet and it seems that very few people are successful against archaic HOAs operating against CCRs that are 40+ years old ... boy is this maddening ...

Thanks!

It may be a stereotype and generalization, but you might be able to leverage support from the LDS church teachings if you can sell solar PV (hybrid, not straight Grid Tie) as being in line with self-sufficiency and preparedness based on its ability to provide power for years with no fuel or external supplies.

[OvertheSun]

[QUOTE=Ian S;92218]it's often possible to get stuff done through diplomacy. Once you get combative, hackles get raised and the discourse goes downhill from there. QUOTE]

I don't disagree. But in my community, which is a master planned community in which more than a dozen builders sold houses, the original CC&Rs were written by the developer and the initial HOA board consisted of a majority of developer and builder representatives. Most of the provisions were intended to protect sales of new houses by the builders, not necessarily the interests of the homeowners, who may be unaware of the HOA policy on solar.

Initially our HOA rejected all proposals for solar until they were educated by an attorney resident that California law prohibits outright bans on homeowner installation of solar panels on their own property by HOAs and that any restrictions are void if they would reduce efficiency more than 10%.

Over the past 10 years, there have been many changes in our CC&Rs to reflect the actual homeowners' preferences. We still can't keep chickens (a hot topic here) or have clotheslines, but we can have basketball hoops and temporarily park RVs and boats on the street.

[J.P.M.]

[QUOTE=OvertheSun;92224]

it's often possible to get stuff done through diplomacy. Once you get combative, hackles get raised and the discourse goes downhill from there. QUOTE]

I don't disagree. But in my community, which is a master planned community in which more than a dozen builders sold houses, the original CC&Rs were written by the developer and the initial HOA board consisted of a majority of developer and builder representatives. Most of the provisions were intended to protect sales of new houses by the builders, not necessarily the interests of the homeowners, who may be unaware of the HOA policy on solar.

Initially our HOA rejected all proposals for solar until they were educated by an attorney resident that California law prohibits outright bans on homeowner installation of solar panels on their own property by HOAs and that any restrictions are void if they would reduce efficiency more than 10%.

Over the past 10 years, there have been many changes in our CC&Rs to reflect the actual homeowners' preferences. We still can't keep chickens (a hot topic here) or have clotheslines, but we can have basketball hoops and temporarily park RVs and boats on the street.

Not that it's a big deal for this thread, but to be technically correct: I'm pretty sure in CA HOA's cannot impose restrictions on residential solar electric systems that inhibit performance by more than 20% or increase cost by more than $2,000.00, not the 10% figure quoted above. Figuring 20% of performance is a bit tricky - according to who measures performance and how. I'd guess annual output, but I didn't write the law and I'm dubious that the bunch that wrote the law know anything about solar.

[OvertheSun]

J.P.M. I stand corrected - you are right. i was writing from memory, which probably inflated the numbers to my interest. The statute says that a reasonable and thus permissible restriction is one that "does not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits....'significantly' means an amount not to exceed two thousand dollars ($2,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 20 percent as originally specified and proposed."
Since "or" is used, you wouldn't need to address efficiency unless the increased cost of the restriction was "reasonable" (i.e. under $2,000)
I guess i should brush up on these details of the law as well as learning more about solar since I'm considering adding a PV system soon.

[Ian S]

Initially our HOA rejected all proposals for solar

I guess my point was that it's important to establish whether or not the CC&R's are specific on solar panels or if it's the Board making a judgment decision on its own. If it's the former, then the CC&R's would have to be changed. If it's the latter, then you either educate and convince the Board of the suitability of solar panels or else you change the Board itself. The key thing IMHO is to resist getting combative and instead be diplomatic when trying to educate the Board. Our CC&R's from decades ago never envisioned solar panel on roofs. I think it was 6 or 7 years ago that the first resident wanted to install panels. The Board wasn't sure what it should allow but was soon educated by our attorney that under Arizona law we had to permit the installation.

[J.P.M.]

J.P.M. I stand corrected - you are right. i was writing from memory, which probably inflated the numbers to my interest. The statute says that a reasonable and thus permissible restriction is one that "does not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits....'significantly' means an amount not to exceed two thousand dollars ($2,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 20 percent as originally specified and proposed."
Since "or" is used, you wouldn't need to address efficiency unless the increased cost of the restriction was "reasonable" (i.e. under $2,000)
I guess i should brush up on these details of the law as well as learning more about solar since I'm considering adding a PV system soon.

Understood. As the HOA guy around my neighborhood who tries, among other things, to provide honest, hopefully informed and objective information to counter the common hype and misinformation from too many unscrupulous solar peddlers (my apologies to the scrupulous ones), I try to stay informed. As a respectful suggestion, read AB 327, the rate reform and net metering legislation recently passed and signed before you pull the trigger on any system. More info never hurts. The bill may have long term unintended consequences. For example, it is possible, although probably unlikely, that electric bills for some, mostly high usage residential utility customers, may go down some if/as tier rates are adjusted, lower tiers up and upper tiers down some, as mentioned/suggested/ alluded to in the bill.