1. Solar Panels and HOAs – One Homeowner’s Experience Presented To: Solar Washington General Meeting By: Don Stimson Date: March 4, 2015

2.  6.5 kW System  27 Itek Energy IT240 Panels  15 On Rear Roof (not visible from street)  12 On Side Roof (partially visible from street)  27 EnPhase Energy M215 Microinverters  Design and installation by: Sunergy Systems

3.  Proposed alterations must be submitted for approval to Architectural Control Committee  Committee determines if the proposed alteration “harmonizes with the (1) surrounding structures, (2) surrounding natural and built environment, and (3) aesthetic character of the other homes in the Plat  Committee has 30 days to respond (or alteration is automatically approved)

4. Pertinent Sections  HOA may not prohibit installation as long as the solar panel meets applicable health, safety, and performance standards  HOA may:  Prohibit the visibility of any part of a roof-mounted panel above the roof line  Permit attachment of a panel to the slope of a roof facing the street only if:  The panel conforms to the slope of the roof; and  The top edge of the panel is parallel to the roof ridge

5.  HOA may require:  Panel frames, support brackets, or any visible piping or wiring to be painted to coordinate with the roofing material  Indemnification or reimbursement to HOA or members for loss or damage caused by installation, maintenance, or use of solar panels  The HOA may also apply other reasonable rules regarding the placement and manner of solar panels

6.  Applied for approval of our solar panel project on April 22, 2012  No feedback or questions from HOA  Approval was denied on the 30 th day  Reasons for denial consisted of:  Several questions indicating a lack of knowledge about solar electric systems, and  The HOA’s interpretation of the state law

7.  HOA may:  Prohibit the visibility of any part of a roof-mounted panel above the roof line  Technically, the roof line is the roof surface. Any roof- mounted panel will be above the roof line. Law should reference roof ridge or peak line.  Permit attachment of a panel to the slope of a roof facing the street only if:  The panel conforms to the slope of the roof; and  The top edge of the panel is parallel to the roof ridge  Stated as a permissive action (“HOA may”) rather than being mandatory (“HOA must allow a panel on a roof facing the street if”)

8.  The HOA may also apply other reasonable rules regarding the placement and manner of solar panels  Open ended clause potentially enabling an HOA to apply any rules they want to. Who defines what is reasonable?  Our HOA considers solar panels to be ugly eyesores. They use this clause to prohibit visibility from the street.  No Restrictions On HOA Rules Concerning Aesthetics

9.  After several fruitless letters back and forth, we had to sue our HOA to: 1. Try to get our panels installed 2. Get an interpretation of the state law  Motioned for summary judgment  Motion was denied on the basis that the judge felt a full trial was needed to determine if the HOA restrictions were “reasonable”  A settlement was reached with the HOA prior to full trial

10.  Limited section of side roof on which panels could be installed. (Fortunately, Sunergy was able to fit 3 more panels on rear roof and situate panels on the side roof such that we retained the full complement of 27 panels.)  Required additional fir tree to be planted to further block visibility of the panels from the street  A few other provisions to reduce visual impact

11.  Installation performed 11/19-22/2013 (19 months after initial application to HOA)  Some positive changes (for us) from the delay:  Price reduction  Increase in per panel power output  255 Watts STC instead of 240 Watts STC  6.9 kW STC system output instead of 6.5kW

12. Our System – Rear Roof

13. Our System – Side Roof

14. Expected Power OutputActual Power Produced 6998 kWh8460 kWh First full year performance January 1 to December 31, 2014  Offset of Estimated Annual Electrical Usage:  Original design – 57%  Final realized design – 60%  First year actual power production – 72%

15.  WA state law on HOAs and solar panels needs revision – currently any HOA can prevent a homeowner from installing solar. Our own HOA maintains rules that effectively prohibit about 75% of our development from installing solar.  Lawsuits are very expensive, time consuming, and stressful  Support from Sunergy Systems throughout this ordeal was incredible