More and more homeowners across California are choosing to invest in solar panels to save on energy costs and contribute to a greener environment. If you are one of them but live in a community with a Homeowners Association (HOA), you might encounter resistance when trying to install a solar energy system. Some HOAs impose unreasonable requirements, such as tricky insurance demands with exorbitant coverage levels, which make going solar harder than it should be. Fortunately, California’s Solar Rights Act (found in Civil Code §§ 714, 714.1, and related provisions like § 4600) provides strong protections for homeowners. In this article, we go over some of the general restrictions placed on HOAs to prevent them from blocking their members from installing solar panels. Then we will explain two common HOA tactics that can illegally hinder solar projects: (1) mislabeling insurance designations (demanding to be an “additional insured” instead of the proper “additional interest”), and (2) insisting on $1 million in insurance coverage even for modest homes. We’ll break down how these practices may violate the law, why they likely constitute unreasonable restrictions under the Solar Rights Act, and what you can do to stand up for your rights, and when to consult an attorney.

California’s Solar Rights Act: Protecting Your Right to Go Solar

California public policy encourages the use of solar energy and seeks to remove obstacles to solar installations. The California Solar Rights Act (primarily Civil Code § 714) prevents HOAs and similar communities from blocking homeowners who want to install solar panels. In fact, any HOA rule or provision that “effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.” This means HOAs cannot outright ban solar panels on your roof, nor can they impose draconian conditions that have nearly the same effect as a ban.

HOAs, however, impose some reasonable restrictions, but state law tightly limits what counts as “reasonable.” By statute, a restriction is only permissible if it does not significantly increase the cost of your system or reduce its efficiency/performance. The law even quantifies “significantly”: for photovoltaic solar systems (the most common type used for residential), an HOA rule that adds more than $1,000 in cost or cuts energy output by more than 10% is unreasonable and unenforceable. In other words, any requirement driving your installation cost up beyond a minor amount (or reducing its energy production substantially) likely violates the Solar Rights Act.

Importantly, California law also streamlines the approval process for solar in HOAs. Applications for solar installations must be processed like any other architectural request and cannot be willfully delayed. If your HOA doesn’t respond with a written denial within 45 days, your application is deemed approved by default (unless your HOA timely requested more information). This prevents boards from sitting on your request indefinitely.

What about condos or townhomes? Even if the roof is technically considered common area, HOAs cannot use that as an excuse to block solar. Section 714.1 of the Civil Code explicitly forbids HOAs from requiring a super-majority vote of other owners (as would normally be required under Civil Code § 4600 for granting exclusive use of common area) just to let you install a solar energy system on the roof of the building where you live. In fact, Civil Code § 4600(b)(3)(J) now exempts solar installations from needing membership approval, so long as the system meets the Solar Rights Act’s requirements. This means your board can approve your rooftop solar panels without a full community vote, removing another potential obstacle. Bottom line: the law is on your side, HOAs cannot impose unreasonable barriers or delays that thwart your solar ambitions. If you find yourself at odds with your HOA over solar installation, consider consulting an experienced HOA attorney who can help you utilize these protections the law provides.

Mislabeling Insurance Requirements: “Additional Insured” vs. “Additional Interest”

One common hurdle homeowners face is when an HOA insists on being named as an “additional insured” on the homeowner’s insurance policy before approving a solar installation. This request might sound harmless, but it’s often misguided and problematic. In insurance terms, an “additional insured” is very different from an “additional interest.” By asking for additional insured status, the HOA is essentially asking to be covered under your insurance policy, sharing in your liability coverage. In contrast, an “additional interest” (or certificate holder) simply means the HOA would be notified of changes to your policy – it does not confer coverage or legal rights under your policy.
Why does this matter? For one, many homeowners’ insurance carriers will not add an HOA as an additional insured on a personal policy because the HOA typically isn’t a co-owner of your property or a named party at risk. It’s an improper use of the designation. At most, insurers might list the HOA as an interested party (additional interest) to be kept informed that you have a valid policy. If an HOA is mislabeling this requirement, it can create serious headaches and delays. Homeowners end up calling multiple insurance providers only to be told the company “cannot list the HOA as an additional insured” on a standard policy (since the HOA isn’t the insured property owner). This confusion can stall your solar project for weeks or months as you and the HOA go back and forth on insurance semantics.

Moreover, adding an HOA as an additional insured could unnecessarily increase your premiums or exposure in some cases. This designation gives the HOA direct coverage under your policy, potentially broadening the insurer’s risk. For example, if someone is injured in connection with your solar panels and sues the HOA, your policy might have to defend the HOA as well, something your insurer didn’t price into a normal homeowner’s policy. By contrast, simply naming the HOA as an additional interest would satisfy the HOA’s core concern (knowing you have insurance in place) without entangling your coverage.

How does this violate the Solar Rights Act? The law does allow HOAs to require homeowners to maintain liability insurance for a solar installation, but only within reason. In fact, for solar on common-area roofs, Civil Code § 4746(a)(2) explicitly says the owner must keep a homeowner’s liability coverage policy and give the HOA proof of insurance annually. However, the law does not say the HOA can demand to be a named insured on that policy. Requiring the wrong kind of insurance designation isn’t just a trivial detail as it can make it harder and more costly to get insured. If obtaining this special endorsement significantly increases the cost or complexity of your solar project (for instance, if you have to switch insurance carriers or buy additional coverage), it could cross the line into an “unreasonable restriction.” Remember, any HOA condition that effectively deters you by raising costs beyond $1,000 or causing significant delays may violate Civil Code § 714. An HOA demanding to be an additional insured when being a certificate holder would suffice, is likely overstepping. Again, consider engaging an experienced HOA attorney to assist you and help resolve the issue.

Demanding Excessive Insurance Coverage (Sky-High $1 Million Policies)

Another troublesome trend is HOAs requiring homeowners to carry an excessively large insurance policy specifically for the solar installation. It’s not uncommon to see rules mandating $1,000,000 in liability coverage for anyone installing solar panels. The justification HOAs often give is “added risk” such as, for example, a (largely unproven) fear that solar panels could increase fire risk or cause injury if they detach in a storm. While it is reasonable for an HOA to ensure some insurance is in place, demanding a $1 million policy (especially if your home is worth far less) can be an unreasonable burden on the homeowner.

Looking at it in practical terms, most standard homeowners’ insurance policies include some liability coverage (often around $300,000). To meet a $1 million requirement, you might have to significantly increase your policy limits or purchase a separate umbrella policy. That translates to higher premiums which would be an added ongoing cost purely attributable to the solar panels. If your current insurance can’t be easily adjusted, you might even need to shop for a new policy or insurer, which is time-consuming and could be more expensive. These costs can quickly add up. For instance, if an umbrella policy costs a few hundred dollars a year, over the life of your solar system you could pay thousands extra just to satisfy the HOA’s rule. This extra cost is part of your “solar installation” expense, and it may push the total cost well beyond what the law considers a “reasonable” increase.

Aside from cost, an arbitrary $1 million requirement often has no relation to the actual risk or needs of a particular home’s system. It’s a one-size-fits-all number. A small 3 kW residential solar array on a single-family home does not inherently pose a million-dollar liability risk in any typical scenario. The HOA’s own insurance (for common areas) and your existing homeowner’s policy already cover most accidents. For the HOA to require such high coverage specifically for your solar setup suggests the real motive might be to discourage you from proceeding, rather than to address a genuine hazard.

How does this violate the Solar Rights Act? As previously discussed, California law says HOAs cannot impose requirements that drive up your solar costs by more than $1,000 or cut efficiency by more than 10%. For many homeowners, a $1 million insurance mandate could easily breach that threshold. The Civil Code also emphasizes that any restriction which “significantly increases the cost of the system” is not allowed. If your HOA’s insurance rule forces you to spend considerably more on premiums or new insurance products, it’s likely an unreasonable restriction under § 714. Furthermore, such a rule may have a chilling effect as homeowners see the hefty insurance requirement and decide that solar isn’t worth the hassle or expense. That outcome is directly at odds with the state’s public policy to promote solar energy and remove barriers. While an HOA can require proof of insurance, it must be reasonable. A demand for a $1 million policy, especially in a community where home values and risks are far below that, is suspect. It can be viewed as an attempt to circumvent the Solar Rights Act by pricing solar out of reach, and it may not hold up legally if challenged. Consulting an experienced HOA attorney to aid you in determining whether or not your HOA’s policies were put in place to artificially block solar installation can be crucial in your effort to achieve your solar goals.

Remember

If you are a homeowner facing these roadblocks, know that you have options and allies. Arm yourself with knowledge of your rights, keep thorough records of your interactions, and don’t hesitate to get a qualified attorney’s help. Often, once an HOA is confronted with the relevant Civil Code sections and the prospect of legal action, cooler heads prevail, and a compromise is reached. The end goal is usually the same for everyone, a safe, well-installed solar energy system that benefits you (and even the community, by boosting property values and sustainability).

In the sunshine state of California, solar access is a protected right. Your HOA’s role should be to facilitate safe and aesthetically acceptable installations, not to impose unwarranted hurdles. By understanding the Solar Rights Act and standing firm against unreasonable demands, you can ensure your investment in solar pays off. And if the HOA still won’t see the light, an experienced HOA attorney can help you enforce your rights and keep your solar project on track. After all, both the law and the sun are on your side.