{"id":703,"date":"2022-08-03T08:00:00","date_gmt":"2022-08-03T08:00:00","guid":{"rendered":"https:\/\/aurorasolardev.wpengine.com\/blog\/how-to-get-hoa-solar-approval-tips-for-success\/"},"modified":"2024-05-01T03:36:19","modified_gmt":"2024-05-01T03:36:19","slug":"how-to-get-hoa-solar-approval-tips-for-success","status":"publish","type":"post","link":"https:\/\/aurorasolar.com\/blog\/how-to-get-hoa-solar-approval-tips-for-success\/","title":{"rendered":"Your guide to HOAs & solar panels: 5 strategies to get approval"},"content":{"rendered":"

In many areas, Homeowners Associations (HOAs) can present significant barriers to homeowners\u2019 ability to install solar.<\/span><\/p>\n

In 2020, for example, Solar United Neighbors estimated that HOAs wrongly denying residents the ability to go solar had <\/span>cost Virginia solar contractors more than $7 million<\/span><\/a> in retail solar sales since 2014. While <\/span>Virginia has since passed a law protecting homeowners<\/span><\/a> who want to install solar from \u201cburdensome homeowners association (HOA) restrictions,\u201d in many states HOAs are still butting heads with homeowners that want to install solar.<\/span><\/p>\n

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As a solar contractor, how much HOAs impact your business depends on your state\u2019s laws and the HOA bylaws in the neighborhoods you target. However, there are a number of strategies you can employ to help ensure HOA approval for your customers\u2019 PV solar systems, regardless of where you do business.<\/span><\/p>\n

For this article, we went right to the source, getting proven techniques from longtime solar contractors who have extensive experience working with HOAs. We supplement those interviews with our own extensive research to help you close more sales for projects in HOA communities \u2014 and guide your prospective customer through the process as well.<\/span><\/p>\n

HOAs’ impact on solar installations<\/h2>\n

HOAs are neighborhood organizations that create and enforce rules for houses or condominiums in established communities.<\/span><\/p>\n

Solar Power World says, \u201c<\/span>A major directive of the HOA<\/span><\/a> is neighborhood uniformity and\/or a high standard of appearance for each property.\u201d HOAs\u2019 concerns, and the resulting rules, about solar installations tend to relate to how PV panels will affect the look of neighborhoods, and in turn property values.<\/span><\/p>\n

These rules can impact a homeowner\u2019s efforts to go solar. A significant proportion of American homeowners interact with an HOA: <\/span>over 370,000 HOAs in the US<\/span><\/a> regulate about 40 million households or 53% of owner-occupied households. That means there\u2019s a good chance that your prospect needs to work with one. However, <\/span>about half of US states<\/span><\/a> have laws preventing HOAs from denying solar for aesthetic reasons, so the impact on your business is partially dependent on where you operate.<\/span><\/p>\n

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See how customizing your proposal can help you close more sales \u2014 whether an HOA is involved or not.<\/figcaption><\/figure>\n

How to get solar approval from an HOA<\/h2>\n

It\u2019s helpful to understand the typical process for getting approval for a solar installation from an HOA so that you are better able to guide your customer through it.<\/span><\/p>\n

Usually, a customer requests an application from their HOA or gives the contractor permission to do so. Mike Busby, Co-Founder & President of <\/span>Victory Solar<\/span><\/a>, a leading residential and commercial installer in Texas, spoke with Aurora about his company\u2019s extensive experience working with HOAs. He states that his company does all the HOA paperwork on the homeowner\u2019s behalf, only getting the homeowner involved if they have to.<\/span><\/p>\n

Bobby Custard, Solar Consultant for <\/span>Pur Solar & Electrical<\/span><\/a>, an Arizona-based contractor with over 40 years of electrical contracting experience, also shared his insights about interacting with HOAs. He says that after Pur Solar has given the customer everything they need to review and sign, the company notifies the HOA when they begin the permitting process. They send the HOA a copy of the plans, the<\/span> proposal<\/span>, and images of what the project will look like.<\/span><\/p>\n

If the application is approved by the HOA, you can move forward with the installation. If not, you should understand the applicable laws in your state in case you are able to help your customer appeal the decision. We\u2019ll cover some of those laws in just a bit.<\/span><\/p>\n

<\/a>5 strategies to expedite the HOA application process<\/h2>\n

There are a number of best practices to keep in mind that may help make the process of getting HOA solar approval easier and increase the likelihood of a successful outcome.<\/span><\/p>\n

1. Know your state\u2019s laws<\/h3>\n

\u201cSolar access\u201d laws that protect homeowners\u2019 rights during the HOA solar approval process have been adopted by many states \u2014 in fact, there are now over 25 states that have some version of solar access rights.<\/span><\/p>\n

Given that you may be the one educating your customers about their rights in this respect, it\u2019s important to know your state\u2019s existing laws, whether they provide protections from HOA solar restrictions, and what forms they take.<\/span><\/p>\n

What are solar access laws and how do they work?<\/span><\/h4>\n

Solar access laws prevent HOAs from prohibiting solar panel installations or having contracts that restrict homeowners from installing them. However, HOAs can usually make certain requests about a system, as long as they don\u2019t make the proposed solar system less effective or more expensive. For example, <\/span>HOAs are often allowed to place certain restrictions<\/span><\/a> on systems, like retaining the right to influence design elements of a rooftop solar array, such as requiring that all electrical wiring be placed out of sight.<\/span><\/p>\n

California has had <\/span>The Solar Rights Act<\/span><\/a> since 1978, which has helped encourage the growth of solar in the state and is the basis for many other states\u2019 protective laws. It <\/span>includes protections that limit HOA ability to pass prohibitive laws<\/span><\/a> but allows an HOA to impose \u201creasonable restrictions\u201d on solar energy systems. <\/span>These restrictions are currently limited<\/span><\/a> to ones that don\u2019t increase the cost of a proposed system by more than $1,000 or decrease its potential performance by more than 10%.<\/span><\/p>\n

Under this law, a homeowner <\/span>does have some responsibility to their neighbors<\/span><\/a> when they seek to go solar. For example, in multifamily dwellings with common roof areas an applicant must notify each owner in the building about a proposal. Additionally, they might also be required to have homeowner liability coverage and provide proof of this to their HOA annually.<\/span><\/p>\n

Arizona has similar solar access laws to California but with less stringency and specificity about what an HOA can and cannot do. For example, the \u201creasonableness\u201d of HOA solar installation restrictions <\/span>is decided on a case-by-case basis in the courts<\/span><\/a>.<\/span><\/p>\n

However, Custard explains that protective Arizona laws have made the HOA approval process very easy for Pur Solar & Electrical. 60-80% of Pur Solar\u2019s installations involve HOAs, and they have never been rejected. He states that even when his company installed several systems near upscale private golf courses, they were able to install the panels facing the fairway for one and facing the putting green for another.<\/span><\/p>\n

The actual provisions of solar access laws vary widely by state and comprehensive information about state and local rules is available at the <\/span>Database of State Incentives for Renewables and Efficiency<\/span><\/a> (DSIRE).<\/span><\/p>\n

2. Be your customer\u2019s guide through the HOA approval process<\/h3>\n

Functioning as your prospect\u2019s expert on how to navigate their HOA\u2019s solar stipulations and state laws from the beginning of the sales process can go a long way towards winning the deal.<\/span><\/p>\n

Find out the HOA\u2019s rules about PV panel installation early, particularly any rules regarding <\/span>design and placement<\/span><\/a>. These can impact aspects of the installation process, such as system price, even if your state has solar access laws.<\/span><\/p>\n

Gauge your prospect\u2019s level of familiarity with this topic and make sure they\u2019re aware of their HOA\u2019s rules, as well as their state\u2019s laws. \u201cMany homeowners are not aware of their rights,\u201d says Custard.<\/span><\/p>\n

He explains that a homeowner may have just bought their house or might be new to the area.\u00a0<\/span><\/p>\n

\u201cThey may have just gotten their HOA rule book, and they\u2019re trying to figure out what direction they can put their car or what their yard has to look like,\u201d Custard said. \u201cSo they\u2019re a little bit overwhelmed and gun shy.\u201d\u00a0<\/span><\/p>\n

Victory Solar\u2019s Busby adds that while some people know how the approval process works or are even on their HOA board, others are completely unaware of how it works.<\/span><\/p>\n

Custard explains that prospects are often concerned about what their HOA will say regarding installing solar. To help ease these concerns, his team makes sure to show the homeowner information about Arizona\u2019s HOA solar laws through emails or printed articles.\u00a0<\/span><\/p>\n

\u201cThe prospect feels much more comfortable moving forward knowing that if they put down a deposit and get the ball rolling with solar,\u201d Custard said. \u201cThe HOA isn\u2019t going to be throwing speed bumps in the path.\u201d<\/span><\/p>\n

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Educating your prospect is a great way to turn them into a customer. Click the image to get The Solar Sales Follow-up Kit, to help answer all their basic solar questions.<\/figcaption><\/figure>\n

3. Have a Streamlined HOA Application Process<\/h3>\n

It helps to show your prospects that you and your team are aware of how to achieve an expedited approval process. For example, there are ways you can <\/span>reassure a prospect\u2019s HOA and address their concerns<\/span><\/a>. This can be done by demonstrating how PV panels <\/span>can increase property values<\/span><\/a> and providing examples of successful installations you have done for similar neighborhoods and home types.<\/span><\/p>\n

Busby notes that Victory Solar has a streamlined process in place to ensure HOA solar approval given that they <\/span>deal with HOAs on about 90% of their projects<\/span><\/a>.\u00a0<\/span><\/p>\n

\u201cWe probably submit too much paperwork but have a 100% approval rate,\u201d he explained. \u201cThe paperwork has got to be very detailed and ironclad. An HOA can rarely oppose that.\u201d<\/span><\/p>\n

Busby also asserts that an important part of a smooth HOA solar approval process is having an operations team that gets paperwork together efficiently.\u00a0<\/span><\/p>\n

\u201cYou have to make the right hires within the operations group of your organization because they\u2019re just as important as your roof crew,\u201d he advised. \u201cIf they\u2019re fast on the paperwork approval it flows down through every part of the operations side. As a result, we\u2019re very quick. We install systems within 30 to 40 days while the industry average is 150 days.\u201d<\/span><\/p>\n

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Speed is key when it comes to solar sales. Click the image to see how integrated financing can help close more deals in the room.<\/figcaption><\/figure>\n

4. Be Creative and Flexible<\/h3>\n

HOA rules may require that you adjust your approach and think outside the box, even in a state with solar access laws. Victory Solar\u2019s Busby had a couple real-world examples to help show the importance of flexibility and creativity:\u00a0<\/span><\/p>\n