Bill would set objective thresholds for HOA restrictions on home solar systems

House Bill 4 would revise Maryland statute governing restrictions on rooftop solar installations by providing numeric thresholds to determine when an association or other governing body may lawfully limit a homeowner's right to install solar collector systems.

Sponsor Delegate Smith said the bill "adds clarity," proposing that a restriction be unlawful if it increases installation cost by at least 5% over initial projections or reduces projected energy output to less than 10% of what was originally projected. The bill, she said, is intended to resolve ambiguity in current statutory language that bars restrictions that "significantly" increase cost or "significantly" decrease energy generation.

Ashley Clark testified for the Maryland Legislative Action Committee of the Community Associations Institute (CAI), urging an objective standard for review and approval of residential solar systems. Clark said CAI supports the bill because it gives community associations clear, measurable criteria to apply to homeowner applications.

The bill does not change how common-area installations are managed and, according to testimony, is aimed at clarifying rights for installations on homeowners' private dwellings. Committee members confirmed the bill is cross-filed in the Senate and has been before the committee in prior sessions.

Why it matters: supporters said the numeric thresholds will reduce litigation and inconsistent enforcement by homeowners associations and similar bodies while preserving homeowners' ability to install residential solar systems within the stated limits.

Next steps: committee consideration; no vote was recorded in the hearing transcript.