HOA and Solar Panels
Love 'em or Hate 'em
Recently we were asked by a Board member at an Association we manage in Aurora, illinois about, "what the HOA can do about those ugly solar panels."
Like most things about Association governance, solar panels add a layer of complexity which is an important topic to discuss, especially if reviewing the community Rules and Regulations.
The controlling law is the Homeowners' Energy Policy Statement Act (765 ILCS 165), which applies to homeowners' associations (HOA), common interest community associations, and condominium associations:
| (765 ILCS 165/5) Sec. 5. Legislative intent. The legislative intent in enacting this Act is to protect the public health, safety, and welfare by encouraging the development and use of solar energy systems in order to conserve and protect the value of land, buildings, and resources by preventing the adoption of measures which will have the ultimate effect, however unintended, of preventing the use of solar energy systems on any home that is subject to a homeowners' association, common interest community association, or condominium unit owners' association. (Source: P.A. 96-1436, eff. 1-1-11.) |
The Act specifically provides that an Association may not adopt or enforce a rule that prohibits or has the effect of prohibiting the installation of a solar energy system.
However, Associations can regulate solar installations in reasonable ways.
An Illinois Association may adopt an Energy Policy Statement that addresses things such as:
- The location of the panels.
- Architectural and aesthetic requirements.
- Installation standards.
- Maintenance responsibilities.
- Repair and removal of damaged or inoperable systems.
These restrictions must be reasonable (there's that word again) and cannot effectively prevent installation.
Important limitations on the Association, it cannot:
- Completely ban solar panels.
- Require solar shingles instead of traditional panels.
- Force a location that reduces the system's estimated annual production by more than 10%.
- Condition approval on neighboring owners' consent.
- Ask about the owner's energy usage.
- Require post-installation energy reporting.
- Deny a system because it is leased rather than owned.
- Special consideration for condominiums
Condominiums and townhomes with continuous roofs are often more complicated because the roof is frequently a common element or limited common element owned or maintained by the Association rather than by the unit owner.
The statute still applies, but practical issues arise regarding:
- Structural engineering.
- Roof warranties.
- Maintenance access.
- Allocation of repair costs.
- Responsibility for roof replacement.
- Shared-roof configurations.
The Illinois legislature has considered additional legislation specifically addressing buildings with shared roofs because these situations require more coordination between owners and Associations.
Management recommendation
For the associations you manage, if this is a question that is coming up for the first time and which the rules and regulations do not address, it is best to consult with the Association's counsel. It's not a good idea trying to prohibit solar panels or solar shingles in the Rules and Regulations. Instead, adopt a detailed Solar Energy Installation Policy with specific requirements such as:
- Architectural application and Board approval before installation.
- Engineering drawings.
- Proof of permits.
- Contractor licensing and insurance.
- Indemnification of the Association.
- Restoration of the roof and common elements if damaged.
- Owner responsibility for all maintenance, removal, and future roof work.
- Compliance with manufacturer warranties and applicable building codes.
- Transfer of Owner responsibility after resale
That approach complies with Illinois law while protecting the Association's property and limiting future disputes. Again, it is always best to refer to counsel.
About PMI Service Group
PMI Service Group manages residential rental homes, Associations, commercial properties and even commercial Associations. We also offer brokerage services for homeowners looking to sell their homes. We also conduct property acquisitions off-market, helping people who face foreclosure or private sales between real-estate investment clients looking to trim or add to their real estate portfolio(s). With many years of experience in construction, engineering, design, rehabs, investment property, property management and portfolio management, let's have a conversation about managing your Association.
PMI Service Group
630-912-8742
