North Carolina G.S. 22B-20: Solar Collectors and HOA Covenants That Ban Them

Quick Answer

G.S. 22B-20 makes void and unenforceable any North Carolina deed restriction, covenant or similar agreement that would prohibit, or have the effect of prohibiting, installing a solar collector on residential property. It has real limits: a covenant can still regulate location and screening if it does not prevent reasonable use, and can bar collectors visible from the ground on the street-facing facade, on roof slopes facing common or public areas, or in the zone in front of the facade. Multi-story condominium buildings with horizontal unit boundaries are excluded.

The one thing a board or owner most needs to know: the statute is not an outright ban on HOA solar rules. Subsection (d) lets a covenant prohibit collectors that are visible from the ground in the listed locations.

At a Glance

What the Law Says

• Purpose, (a): the General Assembly's stated intent is to "protect the public health, safety, and welfare by encouraging the development and use of solar resources and by prohibiting deed restrictions, covenants, and other similar agreements that could have the ultimate effect of driving the costs of owning and maintaining a residence beyond the financial means of most owners."
• The rule, (b): "any deed restriction, covenant, or similar binding agreement that runs with the land that would prohibit, or have the effect of prohibiting, the installation of a solar collector that gathers solar radiation as a substitute for traditional energy for water heating, active space heating and cooling, passive heating, or generating electricity for a residential property on land subject to the deed restriction, covenant, or agreement is void and unenforceable."
• Residential property, (b): "property where the predominant use is for residential purposes." It "does not include any condominium created under Chapter 47A or 47C of the General Statutes located in a multi-story building containing units having horizontal boundaries described in the declaration."
• Location and screening, (c): the section "does not prohibit" a covenant that "would regulate the location or screening of solar collectors ... provided the deed restriction, covenant, or similar binding agreement does not have the effect of preventing the reasonable use of a solar collector."
• Association-maintained structures, (c): if an owners' association "is responsible for exterior maintenance of a structure containing individual residences," a covenant may provide that the title owner is responsible for all damages caused by installation, existence or removal of solar collectors, must hold harmless and indemnify the association, and that the association is not responsible for maintenance, repair, replacement or removal unless it agrees in a recorded written agreement.
• Visible-from-the-ground exception, (d): a covenant may prohibit collectors "visible by a person on the ground" in three places: "(1) On the facade of a structure that faces areas open to common or public access; (2) On a roof surface that slopes downward toward the same areas open to common or public access that the facade of the structure faces; or (3) Within the area set off by a line running across the facade of the structure extending to the property boundaries on either side of the facade, and those areas of common or public access faced by the structure."
• Fees, (e): "In any civil action arising under this section, the court may award costs and reasonable attorneys' fees to the prevailing party."

What This Means in Practice

For boards

• A rule that bans solar collectors altogether, or that has the effect of banning them, is the type of restriction subsection (b) makes void.
• Location and screening rules are still allowed, but only if they do not prevent "the reasonable use of a solar collector." Our reading: a rule that forces a placement that makes the system unworkable risks falling on the wrong side of (c).
• If your documents bar collectors that are visible from the ground on the street-facing facade or roof slope, that language tracks subsection (d). Our reading: it must be limited to those three locations and to collectors "visible by a person on the ground."
• If the association maintains building exteriors, consider whether the declaration contains the indemnity and maintenance language that subsection (c) permits.
• Remember the fee-shifting rule in (e) when deciding whether to contest an installation.

For owners

• Read your declaration for any solar language and compare it against (b) through (d).
• A collector on the rear roof slope, or otherwise not within the three listed locations, is not covered by the (d) exception. Our reading: a covenant barring it would be tested against (b) and (c).
• If you own a unit in a multi-story condominium building with horizontal unit boundaries, the statute's protection does not apply to you.

What the law does not say

• It does not cover every device. The text covers collectors that gather solar radiation "as a substitute for traditional energy for water heating, active space heating and cooling, passive heating, or generating electricity." It does not say how it applies to other products.
• It does not define "reasonable use" or "effect of prohibiting." Those are open questions in a given dispute.
• It does not set an approval process. Whether the association's architectural review can require an application for solar is not addressed in the text we read. Ask counsel.
• It does not address HOA-owned common areas or roofs of buildings the association owns. Open question.
• It contains no penalty on the association beyond voiding the restriction and the possible fee award.

Timeline

Related North Carolina Law

• Chapter 47F overview
• Chapter 47C overview
• § 47F-3-121: flags and political signs
• North Carolina HOA laws: complete guide

Board Checklist

• Pull every solar-related covenant, rule and architectural guideline and compare each to subsections (b) through (d).
• Remove any provision that bans collectors outright or in practice.
• Limit any visibility-based prohibition to the three locations in subsection (d).
• Confirm that screening and placement rules still allow reasonable use of a collector.
• If the association maintains building exteriors, ask counsel about indemnity and maintenance language under subsection (c).
• Check whether any condominium building is multi-story with horizontal unit boundaries, because it is outside the statute.
• Get counsel review before denying a solar application, given the fee-shifting in subsection (e).

Frequently Asked Questions

Can a North Carolina HOA prohibit solar panels?

Not outright. A covenant that prohibits or effectively prohibits a covered solar collector on residential property is void and unenforceable. But a covenant may bar collectors visible from the ground on the street-facing facade, on a roof slope facing the same areas, or in the zone in front of the facade.

Can an HOA regulate where panels go?

Yes, regulation of "location or screening" is permitted as long as it does not have the effect of preventing the reasonable use of a solar collector.

Does the law cover condominiums?

Only in part. Condominiums in multi-story buildings with units having horizontal boundaries are excluded from "residential property." Other condominiums, such as townhome-style ones, are not excluded by that sentence.

What if the association is responsible for exterior maintenance?

The covenant may make the owner responsible for damage from installation, existence or removal and require indemnification, and may say the association is not responsible for maintaining or removing the collector unless it agrees in a recorded written agreement.

Who pays attorneys' fees in a solar dispute?

In a civil action arising under the section, the court "may award costs and reasonable attorneys' fees to the prevailing party."

What kinds of systems count?

Collectors that gather solar radiation as a substitute for traditional energy for water heating, active space heating and cooling, passive heating, or generating electricity.

Where This Comes From

We read the full text of G.S. 22B-20, including its history note, on the North Carolina General Assembly site: ncleg.gov, G.S. 22B-20. We did not read the session laws in the history note or any court decisions applying the section.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed North Carolina attorney before acting.