HOAs Can’t Unreasonably Restrict Proposed Solar Installations
A homeowners association cannot bar homeowners from installing solar panels on their home unless bylaws explicitly prohibiting solar installations exist.
HOAs cannot place restrictions on solar installations that will cause the cost of installation to rise by 5% or cause the energy produced to decrease by 10%.
Homeowners who prevail in legal cases against HOAs imposing unreasonable restrictions on solar installations are entitled to recover attorney’s fees.
The future of solar energy in Virginia is looking bright. Thanks to a landmark clean energy bill passed in 2020, Virginia is now a national leader in new solar capacity developments, adding 236 MW of capacity in just the first three months of this year. Community solar, which allows multiple customers to tap into power being generated by local solar panels, is now a reality in the state. Another new solar option for Virginians, net metering, gives owners of solar panels the ability to earn credit on their monthly electric bills for energy produced. Despite these advances, just under 2% of the state’s electricity is currently generated from solar, according to the Solar Energy Industries Association, but that percentage is expected to go up in the coming years.
Despite the considerable progress Virginia has made recently in transitioning to a carbon-free electric grid, obstacles remain at the local level that prevent consumers from harvesting the energy of the sun. Homeowners associations — organizations that draw up certain rules and regulations for communities of homeowners — are among the biggest barriers to new solar developments in Virginia. According to Solar United Neighbors, over 300 homeowners in Virginia were restricted from installing solar panels on their home between 2014 and 2020 due to restrictions imposed by HOAs. Aside from hindering the progress of clean energy in the state, these restrictions cost the state over $7 million in lost economic investment.
Homeowners in Virginia should know that state law protects against unreasonable restrictions imposed by HOAs in regard to solar panels installed on homes.
A law passed in 2014 prevented HOAs from banning solar installations on a property unless the association already had bylaws establishing a solar prohibition. This was a step in the right direction, but the law also allowed for HOAs to establish “reasonable restrictions” regarding the size, placement, and appearance of solar installations. This caused problems — the law failed to include any definition of what a “reasonable restriction” might be, giving HOAs space to place unreasonable burdens on prospective solar consumers.
Finally, in 2020, the General Assembly amended the bill to clearly define the reasonable restrictions HOAs can place on solar installations. Under the new legislation, a restriction on a solar installation imposed by an HOA can be considered unreasonable if it causes the price of installation to rise by 5%, or if the restriction causes the amount of energy that would normally be produced to decrease by 10%. Homeowners installing solar panels must also ensure the installation looks presentable, meets all relevant building codes, and that all wires are concealed.
These definitions bolster both energy consumption rights and property rights, granting homeowners more say in how they power their homes. A homeowner who needs to take an HOA to court over a solar installation is entitled to recover attorney’s fees, if their case prevails. It’s worth knowing, however, that Virginia law still allows HOAs to ban solar installations through explicit inclusion in community bylaws.
Solar energy is on the rise in Virginia. State laws give more power to consumers than ever to choose how their homes are powered. While localities and HOAs continue to be a barrier to clean energy, mechanisms exist to overcome these obstacles. With clear, accessible information on how renewable energy policy can be implemented in the state, Virginians can reap all the benefits solar affords.