Solar Panels – HOA Rules

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Under the Texas Property Code, Associations cannot restrict a homeowner from installing solar panels.  But, they can restrict the types of materials used in installing solar panels and the location of the solar panels.  There has been an increase in the use of solar panels and the need for clean energy.  How is that going to affect the enforcement of deed restrictions and the ability of the HOA to place reasonable restrictions on the use of solar panels?

The Inflation Reduction Act was passed by the legislature to help consumers with the installation of solar panels, which can be quite high.  Homeowners can add 30% of the cost of installing solar panels as a credit on their tax return.  This is a huge incentive to homeowners to install solar panels on their homes. 

Under 202.010, the association is extremely limited in restricting solar panels.  But, the association can implement policies on the material and placement of solar panels.  In addition, if the installation of solar panels is a public safety issue, the association can restrict the installation.  Even if limited on restrictions, the homeowner must still submit an application to the association to detail where the solar panel is going to be placed and how the installation will occur.  But, the association or architectural control committee cannot withhold approval if the code section requirements are met or are far exceeded.  A developer may prohibit solar panels when in a development period there are fewer than 51 planned residential units.

Regardless of how the residents feel about clean energy, climate change, or solar panels specifically, HOAs need to be familiar with how solar panels are installed and the consequences of moving panels or the materials involved in installing solar panels.

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