In a recent case last month, Teroso Del Valle Master Homeowners Association v. Griffin, the Second District Court of Appeal upheld a homeowners association’s power to regulate homeowners’ installation of solar energy systems. Although under California law associations cannot prohibit the installation or use of solar energy systems, associations may impose reasonable restrictions on them.
To be reasonable, the restrictions must either (i) not significantly increase the cost of the system proposed by the homeowner or significantly decrease its efficiency or performance or (ii) allow for an alternative system of comparable cost, efficiency, and energy conservation benefits. (For a solar water or swimming pool heating system, “significantly” means an increase in cost of more than 20 percent or decrease in efficiency by more than 20 percent, as originally specified and proposed; for a photovoltaic system, “significantly” means an increase in cost of more than $2,000 over the cost as originally specified and proposed, or a decrease in efficiency of more than 20 percent as originally specified and proposed.)
An application for approval of a solar energy system must be processed and approved/denied in the same manner as an application for any modification or alteration to the common area or units (e.g., by an established architectural control committee in accordance with adopted architectural standards). The approval or denial must be in writing. If an application is not denied in writing within 60 days after it is received, it is deemed approved, unless the delay is the result of a reasonable request for additional information.
The association’s restrictions may take into account not only health and safety considerations, but also aesthetics. When the association’s governing documents do not prohibit all solar energy systems, but rather permit systems that are comparable in cost and performance and are aesthetically acceptable, the solar system regulations are enforceable.
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