on January 1, 2020, that solar energy systems must be installed on all new construction of single family and low- rise (three (3) stories or fewer) multi- family buildings built in California. Te Commission estimates that around 130,000 units in both single and mul- tifamily buildings will have to comply with this new requirement, although some homes may be exempt if they are
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For example, builders can contract with solar energy system companies to install these systems in new residential construction and can include the cost in the purchase price of the homes they are constructing. Some builders are even cutting out the middleman and developing their own in-house solar divisions to assist them with this process.
deemed unsuitable for rooftop solar sys- tems, such as due to shading, weather, solar panel orientation, etc.
Te Energy Commission’s own data es- timates that this new requirement will add approximately $8,400 to the cost of a new single-family home in Califor- nia, but the Commission also maintains that homes with solar energy systems will nevertheless cost less to own than homes without them, because of the cor- responding drop in the homes’ monthly energy bills (approximately $80 month- ly, according to the Commission’s own estimates), and that consequently, fami- lies will save thousands of dollars during their first decade of homeownership.
While residential developers and builders will actually be responsible for complying with this new building code requirement, a cottage industry of third-party energy consultant companies have emerged who will generally be assisting developers and builders to navigate through the complex building code requirements. Tis new re- quirement is designed to allow for flex- ibility, by allowing builders to meet the requirement for solar energy systems in new construction through a number of alternative ways.
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Another method for com- plying with this new re- quirement, allows the build- er to petition the Commis- sion, if cost is a concern (and when is it not?), to establish contracts with so- lar energy systems through long-term leases as opposed to outright purchasing the system which is also known as “solar-as-a-service.” Many
new homebuyers may find this option to be a more attractive choice, because of lower upfront costs. Newer solar leas- ing agreements often allow these leases to be transferred to new owners when selling the home, which was not his- torically possible, and which may relieve some potential home buyers’ initial ap- prehension in absorbing this added cost to the purchase of their homes.
Condominium owners who lease so- lar energy systems will likely rely on the leasing companies to be respon- sible for maintaining the equipment, while those who purchase them will likely be responsible for maintaining it themselves. Both of these situations may present maintenance and repair concerns that are likely not addressed in a community association’s govern- ing documents. Amendments or spot amendments to address these concerns are recommended and at the very least should be included in the association’s rules and regulations which can include its architectural policy.
Another practical effect of this change is that architects and engineers will now have to take into consideration concepts such as solar orientation, en-
ergy production, and energy efficiency, when designing new residences, and may as a result need to make aesthetic changes to their designs to comply with this new requirement.
In addition, builders will have to con- sider the durability and safety of solar energy systems when calculating their potential liability under construction defect and warranty principles.
CONCLUSION
Solar energy is an exciting concept. By harnessing the almost infinite power of the sun—especially in a state so blessed with sunshine as ours—we can meet many of our energy needs for years to come, in a clean, economical, and safe manner.
Te Legislature, the CPUC, and the Energy Commission have made it clear that they want access to solar energy to be easier and more widespread. How- ever, they have also acknowledged that community associations have legitimate, reasonable concerns regarding mainte- nance, liability, and insurance that will need to be addressed with such systems, especially when it comes to systems in- stalled in their common areas.
STEPHEN T. BRINDLE, ESQ. represents and coun- sels community associations on matters ranging from op- erations, corporate governance
and governing documents, enforcement, short term leasing, assessments, demand letters, dispute resolution and settlement agreements, and general transactional matters. He also has experience with commercial leasing, tax issues as they relate to real estate transactions including Prop 13 and transfers of ownership, easements, and title matters. He earned his Juris Doctor degree with honors from Golden Gate University School of Law, and his BA in Literature from the University of Califor- nia, Santa Cruz. Prior to joining the firm, Stephen worked for a boutique business law firm in San Francisco, a large full-service law firm in Oakland, and in the real estate law department of a major national clothing retailer.
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