Plan, Plan, Plan

When it comes to renewable energy systems, consult with experts and adopt rules in advance.

By John D. Hansen, Esq.

Although renewable energy systems are becoming more common and more affordable, they are also becoming mandated and heavily regulated. By 2035, all new cars sold in California must be electric, and the legislature recently instructed the Department of Housing and Community Development to investigate updating the building code to require electric vehicle (“EV”) charging stations in multifamily dwellings. Gas prices are rising, and power outages are more frequent. This all leads to an increase in renewable energy systems in residences, including ways to store that energy. When reviewing applications for such systems, associations must be mindful of limitations on their ability to impose rules, and what is in the best interests of the association when approaching renewable energy systems.

Reasonable Restrictions

California law allows associations to impose reasonable rules and regulations subject to an association’s governing documents. (Civil Code §4340 et. seq.; see also, Yan Sui v. Price (2011) 196 Cal.App.4th 933, citing Nahrstedt v. Lakeside Village Condominium Assn. (1994) 8 Cal.4th 361, 386 – (“Whether a rule is reasonable ‘is to be determined not by reference to facts that are specific to the objecting homeowner, but by reference to the common interest development as a whole.’”) Additionally, restrictions (no prohibitions) on solar systems and EV charging stations cannot unreasonably increase the cost ($1,000 on solar) or significantly decrease the efficiency (10% on solar) (Civil Code §§714, 714.1, and 4745.) Owners have a right to install solar panels on condominium buildings, and these limitations apply to both planned developments and condominiums (Civil Code §4746). These limitations likely apply to energy storage as well, even though not expressly stated.

Consult With Experts

Associations should start planning for the increased use of renewable energy systems. Experts can be retained to inspect buildings, parking lots, and even residences to propose ways to incorporate renewable energy.

Condominium buildings create unique challenges that can be overcome with a solar site survey that identifies usable space on roofs and then fairly allocates that usable space among the units. An expert can identify effective ways to tie the solar into an owner’s electrical system, and locations where a battery could be installed serving the owner’s unit.

New products are available for EV chargers that connect between the electrical meters and breaker box that only require a small installation in a breaker room in a condo building that can then run lines to a charger in a parking garage. An expert can advise on how to fairly use the space in a breaker room, and how to create hangers to bundle large amounts of conduits and lines that will eventually be supplying everyone’s EV charger.

An expert can further advise on how to integrate an energy storage device and where it could be located.

Turn Expert Advice Into Policy

Once equipped with expert advice on how to install and use renewable energy systems in a development, the board can then adopt a policy for how owners can install their own systems. The policy could be both a guide, and a set of enforceable rules. The “guide” part can make recommendations for systems that will be compatible with the electrical systems and building systems installed by the developer, or provide recommendations for local contractors that know the development. The “rules” part can have reasonable restrictions on where an EV charger can be located in a parking garage or lot, where a charger connection or battery can be installed in a utility room, how conduit must be installed in a garage, or where panels can go on a condominium roof.

While these may function like enforceable rules, they will also be based upon expert advice that can identify the only, or most cost-effective way for owners to install these systems. By the association conducting this investigation on its own, it will avoid having a patchwork approach to adding renewable energy systems that are done differently every time, or that have to be investigated each time.

By the association doing the expert investigation on its own, it creates a uniform, effective and attractive way to utilize renewable energy systems.

For example, in a building with 100 units and a parking garage, eventually there will be dozens or more EV charging stations installed, and/or dozens of large batteries installed. An association could do it piecemeal by letting them go in on a case-by-case basis, resulting in a spiderweb of conduit on the ceiling and owners jockeying for space in the utility room for battery space, or the association can have an expert design a plan and install some infrastructure to have an orderly and attractive set of conduit hangers and identified shared areas for batteries.

In addition to the structural limitations in multi-unit housing, there is also an importance of uniformity of these systems in other types of attached residences and even in detached residences. For example, in a community that has a uniform location for AC condensers, an association should consider whether to require a fixed location for a battery, such as on the same side of the residence, or in a garage, or some other accessible location that is the same for all residences. Different styles or models of homes will have different layouts and locations for their electrical panels, so a set of rules could account for that.

The important aspect with all of this is that by the association doing the expert investigation on its own, it creates a uniform, effective and attractive way to utilize renewable energy systems. Additionally, by doing the research in advance, the association can adopt rules that fit within the limitations of Civil Code §§714, 714.1, 4745, and 4746 because we will know the impact on cost up front, and if the experts are researching ways to cost-effectively implement renewable energy systems, the association can avoid the issue of a rule increasing cost or decreasing efficiency.

John D. Hansen, Esq., is an attorney with Baydaline & Jacobsen LLP specializing in general counsel to community associations. He has 14 years of experience in the industry and is based out of Sacramento.