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Everything HOAs Need to Know About Solar Panels

Published Date

Roof of house with solar panels at dusk

The solar industry is growing exponentially in the United States. In the first half of 2024, 67% of electricity generation added to the American power grid was solar! With this trend expected to continue, many people are installing solar panels on their roofs to lower energy bills, increase property values, and take advantage of solar tax credits.

What does this mean for your homeowners’ association (HOA)? HOA board members need to understand the impacts of solar panels to create informed policies and reasonable regulations for their communities. Learn more with our solar panel HOA guide.

Understanding How Solar Panels Work

Made from semiconductor materials encased in glass, solar panels use photovoltaic (PV) technology to capture energy from sunlight. When the PV cells in the panel absorb photons of sunlight, electrons shift and create electrical charges that flow through the solar panel’s circuit. It’s that current of electricity that powers devices, charges batteries, or supplies an electric power grid.

Types of Solar Panels

There’s no one-size-fits-all when it comes to solar panels. In fact, there are three different types of solar panels:

  • Monocrystalline. Because monocrystalline solar panels are made from one crystal of high-grade silicon, they’re considered stronger, more efficient, and perform better than others. Their black color tends to blend the best with most roofs, but they’re also the most expensive option. 

  • Polycrystalline. Polycrystalline solar panels are constructed from multiple pieces of silicon fragments, sometimes what’s leftover from the monocrystalline construction. That’s why they’re less powerful and efficient than monocrystalline but are generally more affordable. They typically have a bluish hue with silver frames.

  • Thin-film. Thin-film solar panels are composed of several layers of light-absorbing substances, like amorphous silicon and gallium arsenide. These materials are not as powerful as the crystalline silicon used in monocrystalline and polycrystalline panels, so they’re the least efficient. However, they’re slimmer and can operate closer to the roof’s surface. These are often used for portable systems.

Benefits of Solar Panels

There’s a reason why more than 5 million solar energy systems have been installed nationwide. Common benefits of solar panels for your community may include:

Environmental Perks

Solar energy is a renewable resource that can reduce greenhouse gas emissions, conserve water, and improve air quality. By installing solar panels, you contribute to a healthier environment for all.

Learn More: Ways to Create a More Eco-Friendly Community

Financial Advantages

With solar panels becoming more affordable, it makes sense to take advantage of price cuts and ongoing tax credits. Residents may also significantly lower their monthly utility bill by generating their own power or hosting a solar panel system and buying back the electricity at a discounted rate.

In addition to cost savings, solar panels can potentially increase property values and help homeowners get the best return on their investment.

Attracting and Retaining Residents

Adapting to emerging technology can help your community attract and retain residents. Permitting solar panels shows buyers and current residents that your association embraces sustainability and futureproofing the community.

HOA Solar Panel Rules, Laws & Policies

As an HOA board member, it’s crucial to have an HOA policy on solar panel installation and use. A comprehensive policy can help the board avoid complaints, manage violations, and address community disruptions properly. However, it’s necessary that your policy aligns with legal regulations and your association’s governing documents.

When drafting your HOA solar panel guidelines, refer to local, state, and federal laws for more information on incentives, restrictions, and other policies. Your HOA’s solar panel policy should include:

  • The application process for solar panels

  • What part of the roof solar panels may be installed

  • How much of the roof can be covered by the panels

  • If certain types of solar panels are allowed

  • Who can install the solar panels

Work closely with your HOA attorney to ensure your community policies comply with solar energy regulations in your area. Share the policy regularly, so residents know that it exists and how to comply.

Workers installing a solar panel on a roof

FAQs About Solar Panels in HOAs

As interest in solar energy grows, your HOA board probably has questions about solar panels in your community. Here are answers that can help.

Do solar panels require upkeep?

For optimal effectiveness, solar panels do require regular maintenance. Upkeep of solar panels includes:

  • Periodically clearing debris from the panels

  • Cleaning dust and dirt with water and a microfiber cloth

  • Tracking energy output to ensure the panels are working as they should

  • Inspecting for damage regularly

  • Hiring a solar professional for repairs and maintenance

     

Can an HOA Deny Solar Panels?

In short, no. While solar access laws vary by state, the American Clean Energy and Security Act of 2009 prevents HOAs from outright banning solar panel installation. However, HOA boards may be allowed to implement reasonable restrictions.

For example, HOAs in Texas can deny solar systems that cause a health or safety hazard, would be located in common areas, or are installed without approval from the architectural review board. Additionally, associations can require a formal application process or enforce HOA violations for non-compliance.

What is the Solar Consumer Protection Act?

Many states have passed a Solar Consumer Protection Act, which protects consumers from unfair business practices and fraud by solar companies. It promotes transparency by requiring certain disclosures on solar sales and leases, proper licensing, approval from local electric utility companies before installation, and other protections against deceptive acts.

Implementing Effective Solar Panel Rules

Modifying HOA rules for new technology can be challenging. While you want to keep up with the latest trends, you also want to protect the integrity of your association. When it comes to solar panel HOA practices, staying informed and providing clear and consistent guidelines can help you navigate these changes and create policies that serve the community.

However, new rules aren’t always helpful to homeowners. To avoid unreasonable regulations, check out our ebook, “Is It a Good HOA Rule?”. In it, we outline how to pass meaningful policies that enhance community living.