Homeowners fight to go green
SALEM, Ore. – May 13, 2010 – Those wanting to install solar panels are often blocked by association rules that push conformity

Early last year, Larry Lohrman, a homeowner in Salem, Ore., decided to try to cut his energy consumption by installing solar panels on his roof. He researched the panels, hired an installer and put a downpayment on a 3,000-watt solar installation.

Lohrman's plans were interrupted abruptly by a letter from his homeowners association at Creekside Estates denying permission for the installation because it would violate the private community's covenants.

It's a scene that's being played out across the country. As homeowners increasingly seek to turn to green practices such as using clotheslines instead of dryers or moving to solar or wind power, they are finding those plans in conflict with the rules of homeowners associations that encourage conformity in order to maintain property values.

"Homeowners associations are charged with protecting the aesthetic look and feel of the community," said Robert DeNichilo, an Orange County, Calif., attorney who specializes in homeowner association law. "As energy costs rise and solar is becoming more of a viable option, you're seeing more and more associations having to deal with it."

Lohrman, who initially canceled his contract, eventually was able to work things out with his association. It turned out a 1979 state law prohibited homeowners associations from banning use of solar panels on property. Although Lohrman has not yet installed solar panels, he and neighbor Burt Bogart sat on a committee to develop guidelines for any solar panels going up in Creekside. The guidelines were approved in March.

Elsewhere, the issue is heating up and state legislatures are stepping in to assure homeowners have the right to go green.

Lawmakers in two states – Texas and Illinois – considered bills this year that would restrict homeowners associations from prohibiting solar panels, said Amy Heinemann, a policy analyst at the North Carolina Solar Center. The center is part of the College of Engineering at North Carolina State University and advocates for renewable energy and energy efficiency.

In Illinois, a bill passed both chambers and is awaiting a House vote on Senate amendments. The Texas measure passed the Senate but failed in the House. Its sponsor, Rep. Burt Solomons, R-Carrollton, said he will resurrect it next year.

Last year, Delaware, Maine, Vermont and Washington passed or strengthened laws restricting such actions by homeowners associations, Heinemann said. They followed California, Maryland, North Carolina and Virginia, which passed similar laws in 2008. Eleven others had laws in place before 2008, she said.

About 60 million people live in about 305,000 association-governed communities across the nation, according to the Community Associations Institute.

Those governing boards have a duty to maintain property values and to balance individual desires with the wishes of all residents, said Frank Rathbun, spokesman for the Virginia-based institute.

Earlier this year, a Michigan couple's lawsuit against their homeowners association was resolved after the pair was granted permission to install three solar collection panels. Daniel and Michelle Hall of Canton had been denied permission in April 2009 to install the panels by the Pheasant View Homeowners' Association's Architectural Review Committee. They sued, and the issue was resolved before the case went to court.

"The good part of the story is that my solar heating system is working," Daniel Hall said.

Rich Fry, a former Creekside association board member, said a board sometimes "gets a bad rap" about policies it didn't create. "You can't really go and change the rules," he said. "All you can do is interpret them and try to enforce them so they are equal across the board."

Solar energy accounts for less than 1 percent of the U.S. energy supply, said Monique Hanis, spokeswoman for the Solar Energy Industries Association, a national trade group for the industry. The Obama administration and many states have set new renewable energy goals and are offering tax incentives to help reach them.

Oregon, for example, has set a goal of ensuring that renewable resources meet 25 percent of the state's energy needs by 2025. The state offers homeowners a tax credit of as much as $1,500 a year for adding solar energy systems to their homes. Also, homeowners who install solar energy systems can get a federal tax credit of 30 percent of the cost, according to the federal Department of Energy.

A typical solar power system costs between $25,000 and $40,000, depending on the size and type of system, Hanis said. Savings would depend on a family's energy usage and utility rates, but typically run from 25 percent to 50 percent of monthly bills, she said.

Still, many homeowners don't even consider solar energy because they anticipate problems with their associations, said Rob McPherson, an area manager for Houston-based solar installer Standard Renewable Energy.

About 20 percent of McPherson's potential customers run into problems with associations, he said.

"It ends up being a frustrating battle for the customer and the company," McPherson said.

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