Court Upholds Association Ban on Solar Panels Despite New Law Prohibiting Such Bans

This case involved a dispute between the owners of a property (“Owners”) and their homeowners association (“Association”) over Owners’ right to install solar panels on the home they were building. Owners purchased their lot in 2022 and began building a home. At the time, the Association had a provision in its CC&Rs that prohibited the installation of solar panels on residences or lots.

In January 2023, a newly enacted statute that had been signed by the governor in August 2022, and became effective on January 1, 2023, went into effect. Under the new law, homeowners’ associations were prohibited from having deed restrictions or covenants that limit or prohibit rooftop solar panels, and homeowners’ associations could only adopt reasonable rules that do not impair solar panel installation or performance.

Relying on the new statute, Owners sought to install solar panels on their home, but Association denied their request based on the provision in the CC&Rs that prohibited solar panels. Owners sued Association for declaratory relief seeking an order from the court that Association’s covenant violated: