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North Carolina Solar Rights: What Homebuyers and Homeowners Need to Know

A Not Safe For Solar resource guide — last updated March 2026

North Carolina has some of the strongest solar access protections in the Southeast, but most homeowners don't know about them until they're already fighting with their HOA. This guide covers the law as it stands today, the landmark court case that reshaped it, the legislation working its way through the General Assembly, and the property value data that dismantles the most common argument HOAs use to deny solar installations.

None of this is legal advice. If you're in a dispute with your HOA, consult an attorney familiar with NC real property and solar access law. But you should walk into that conversation — or that board meeting — knowing exactly where the law stands.

The Law: N.C. General Statute § 22B-20

North Carolina enacted its solar access statute in 2007. The core principle is straightforward: any deed restriction, covenant, or similar binding agreement that would prohibit, or have the effect of prohibiting, the installation of a residential solar collector is void and unenforceable.

The General Assembly was explicit about its intent. The statute exists to protect homeowners from covenants that drive up the cost of owning a home by blocking access to solar energy. It applies to solar collectors used for water heating, space heating and cooling, passive heating, and electricity generation.

What HOAs Can and Cannot Do Under Current Law

HOAs cannot:

  • Use general architectural review authority to deny solar panels. Broad language like "the ARC may deny any improvement for aesthetic reasons" does not give an HOA the power to block solar.
  • Require solar panels be placed on a roof surface that materially reduces their effectiveness (such as a north-facing slope when the home faces south). This has been held to constitute a de facto prohibition.
  • Impose restrictions that have the "effect of prohibiting" solar, even if they don't explicitly mention solar panels by name.

HOAs can (with limitations):

  • Restrict the location of visible front-facing solar collectors — but only if the recorded declaration (the covenant that runs with the land) expressly addresses solar panels. General architectural authority is not sufficient. This is the subsection (d) exception, and it is narrow.
  • Require reasonable screening or camouflaging of plumbing and mounting hardware, as long as these requirements don't amount to a prohibition.
  • Require that the homeowner maintain responsibility for any damages caused by installation, existence, or removal of the system.

The Critical Distinction: Declaration vs. Guidelines

This is where most HOAs get it wrong — and where most homeowners have leverage.

The statute applies to deed restrictions, covenants, and similar binding agreements that run with the land. These are the recorded governing documents: your Declaration of Covenants, Conditions and Restrictions (CC&Rs). They're filed with the county Register of Deeds and are legally binding on all owners.

Architectural guidelines, design standards, and ARC policies are separate documents. They're typically adopted and amended by the board of directors without a membership vote and without recording. They do not "run with the land" in the same legal sense. When the statute says only express restrictions on solar collectors can trigger the subsection (d) exception, it means language in the recorded declaration — not a board-adopted guideline document.

If your HOA denied solar panels based on general architectural review authority or based on guidelines that aren't part of the recorded declaration, that denial is likely unenforceable under current NC law.

The Case Law: Belmont Association, Inc. v. Farwig

In 2022, the North Carolina Supreme Court issued the most significant solar access ruling in the state's history. If you're a homeowner fighting your HOA over solar panels, this is the case you need to know.

What Happened

In 2018, the Farwig family in Belmont (a planned community near Charlotte) installed $30,000 worth of solar panels on their south-facing roof. They had checked their HOA's governing documents first and found nothing about solar panels. Five months later, the HOA told them to apply for approval retroactively — then denied the application, citing aesthetic concerns under general architectural review authority.

The HOA's Architectural Review Committee (ARC) suggested the Farwigs move the panels to a part of the roof not visible from the road. The Farwigs responded that relocating the panels would significantly reduce production and increase costs. The HOA began issuing daily fines and initiated foreclosure proceedings to collect them.

The Farwigs were forced into a four-year legal battle to keep their home and their panels.

How the Courts Ruled

The NC Court of Appeals initially ruled against the Farwigs, holding that the statute allowed the HOA to restrict visible front-facing panels. The NC Supreme Court reversed, ruling 4-3 in the homeowners' favor.

The Supreme Court established three principles that apply statewide:

1. General ARC authority cannot be used to block solar. The subsection (d) exception only applies when the recorded declaration expressly prohibits or restricts solar collectors. A declaration that simply gives the ARC broad discretion over exterior modifications does not meet this standard. The Court drew a clear line between language that expressly prohibits solar panels and language that merely has the effect of prohibiting them through general aesthetic discretion.

2. Requiring suboptimal placement is a prohibition, not a restriction. The Court recognized that telling a homeowner to move panels from a south-facing roof to a north-facing roof materially impacts energy production and system economics. That's not regulating placement — it's effectively banning solar by making it unviable. The same logic applies to any HOA that tells you to put panels where they won't work.

3. Attorney's fees go to the winner. G.S. § 22B-20 provides that courts may award costs and reasonable attorney's fees to the prevailing party. This shifts the financial risk: an HOA that wrongly denies solar panels may end up paying the homeowner's legal costs.

Why This Matters for You

If your HOA's declaration doesn't specifically mention solar panels — and most don't — the HOA likely cannot use its architectural review process to deny your installation, even if the ARC guidelines or design standards address solar. The Farwig ruling draws that distinction clearly.

Pending Legislation: Where NC Law Is Headed

The General Assembly has introduced bills in three consecutive sessions to strengthen the statute further. None has been enacted yet, but the legislative trajectory is unmistakable: NC is moving toward broader solar protections, not narrower ones.

HB 842 (2021–2022) — "Clarify Deed Restrictions/Solar Collectors"

Passed the NC House but died in the Senate. Would have eliminated the subsection (d) exception entirely and established a 10% efficiency threshold — meaning HOAs could only regulate panel placement if the regulation reduced system efficiency by 10% or less.

SB 423 (2023–2024) — "Homeowner Solar Expansion Act"

Filed by Sens. Batch (D-Wake), Garrett (D-Guilford), and Marcus (D-Mecklenburg). Same core provisions as HB 842. Did not advance to a vote.

HB 856 (2025–2026) — "Clarify Deed Restrictions/Solar Collectors"

Filed April 9, 2025 by Rep. Liu with 14+ co-sponsors including Reps. Greenfield, Logan, von Haefen, and Harrison. Currently in the House Rules, Calendar, and Operations Committee. If enacted, it would:

  • Eliminate subsection (d) entirely. HOAs would lose the ability to restrict front-facing solar panels even with express covenant language. The current exception that allows restrictions on visible panels would be gone.
  • Establish a 10% efficiency threshold. HOAs could regulate panel location or screening only if the regulation would not reduce system efficiency by more than 10% of the originally specified output.
  • Strengthen the void-and-unenforceable standard. Any deed restriction, covenant, or agreement that prohibits or has the effect of prohibiting solar installation would be void — with no exceptions for front-facing visibility.

What the Legislative Trend Means

Three consecutive sessions of the same bill tells you where the political will is heading. Even though HB 856 hasn't passed yet, homeowners can point to this trend in conversations with their HOA boards: the legislature is actively working to close the remaining loopholes. Any HOA investing time and money in fighting solar installations is fighting against the direction of the law.

Other Bills Worth Watching (2025–2026 Session)

HB 131 — "Reenact Solar Energy Tax Credit": Would reinstate a 35% state tax credit for qualifying residential solar equipment. The previous NC state credit expired in 2016. If enacted, this would significantly reduce the net cost of residential solar and further accelerate adoption.

HB 729 — "Farmland Protection Act": Would phase out the 80% property tax abatement for solar systems by 2029. This targets utility-scale solar on farmland, not residential rooftop systems, but it's worth monitoring as it represents an opposing legislative current.

Solar Panels and Property Values: What the Data Says

The most common argument HOAs use against solar panels is that they harm property values by degrading neighborhood aesthetics. The research doesn't support this. Every major property value study conducted over the past 15 years has found that solar panels increase home values. No peer-reviewed study has found the opposite.

National Studies

Lawrence Berkeley National Laboratory — "Selling into the Sun" (2015) The most rigorous solar property value study to date. Analyzed nearly 22,000 home sales (including 4,000 with solar) across eight states — including North Carolina. Found a premium of approximately $4 per watt, translating to $15,000 for a typical 3.6 kW system. Used hedonic pricing models with independent appraiser evaluations.

Zillow (2019) Homes with solar sold for 4.1% more on average nationally, a median premium of $9,274. Controlled for bedrooms, bathrooms, square footage, age, and location.

NREL — California Subdivisions (2010) Solar homes sold 20% faster and for 17% more than comparable non-solar homes in controlled subdivision comparisons.

Rocket Homes (2022) Analyzed 2021 listing data. Homes mentioning solar sold 13.3% faster and were 24.7% more likely to sell above asking price.

SolarReviews — Zillow Data Analysis (2024–2025) Homes with solar sell for 6.8% more on average (updated to 6.9% in 2025), approximately $29,000 on a median-valued home. Based on 400+ controlled home comparisons over three years. The increase from 4.1% (2019) to 6.9% (2025) suggests the premium is accelerating as buyer demand grows.

North Carolina-Specific Data

This is the data that matters most for NC homebuyers and homeowners.

Zillow state-level analysis (2019): NC solar homes sold for 4.8% more than comparable non-solar homes — an $8,996 premium on the median home. This outperformed the 4.1% national average.

State Solar Premium (%) Dollar Premium (Median Home)
North Carolina 4.8% $8,996
South Carolina 3.5% $5,866
New Jersey 9.9% $32,281
Pennsylvania 4.9% $8,589
National Average 4.1% $9,274

Berkeley Lab (2015): NC was one of eight states in the study dataset. NC homes with solar commanded premiums consistent with the national $4/watt average.

Duke University: A study of utility-scale solar farm impacts on surrounding NC property values found a 12% statistically significant increase in sale values for high-income residential homes within three miles. This studied proximity to large solar installations, not rooftop panels — and still found a positive impact.

Virginia Tech / PNAS (2025): The largest study of its kind — 8.8 million property sales across 3,699 solar sites. Found that visibility of solar infrastructure from a home made no statistically significant difference in property values. This is directly relevant to the aesthetic argument: even for large utility-scale solar, "I can see it" doesn't translate to "my home is worth less."

NC Tax Benefits Reinforce the Value

Property Tax Exclusion (G.S. § 105-275(45)): North Carolina excludes 80% of the appraised value of residential solar energy systems from property taxation. A $30,000 system adds only $6,000 to your tax assessment, resulting in roughly $42/year in additional property tax (at a typical $0.70/$100 rate). You get the full home value premium without the corresponding tax burden.

Federal Investment Tax Credit (ITC): The 30% federal tax credit remains available through 2032, then steps down to 26% (2033) and 22% (2034). For a $30,000 system, that's $9,000 back on your federal return.

The Aesthetic Argument: What the Evidence Actually Shows

When HOAs deny solar panels, the stated reason is almost always aesthetics — protecting property values by maintaining neighborhood appearance. Here's what the evidence actually shows about that claim.

No study has found that rooftop solar panels reduce home values. This is not a case of mixed evidence. The data is consistent across every major study, every methodology, every geography: solar panels are a net positive for home values. The aesthetic argument is not supported by empirical research.

The "visual impact" claim doesn't hold up. The Virginia Tech/PNAS study found that even for massive utility-scale solar farms, whether you can see the installation from your property made no statistically significant difference in property value impact. If visibility doesn't matter for a 100-acre solar farm, it certainly doesn't matter for a rooftop array.

The premium is growing, not shrinking. If aesthetics were a real concern for buyers, you'd expect the solar premium to decrease as installations become more common and more visible. The opposite is happening: the premium has grown from 4.1% (2019) to 6.9% (2025). More buyers want solar, and they're willing to pay more for it.

HOAs restricting solar may actually be harming property values. If solar adds 4–7% to home value and your HOA prohibits it, the HOA is the one depressing values — not the homeowner with panels. Buyers increasingly search for solar-ready and solar-equipped homes. An HOA with anti-solar policies is a negative signal in a market where solar is a selling point.

For Homebuyers: What to Check Before You Buy

If solar is important to you — either now or in the future — do this due diligence before purchasing in an HOA community.

1. Read the recorded Declaration of CC&Rs, not just the HOA welcome packet. Look for any language specifically mentioning solar panels, solar collectors, or solar energy. General architectural review authority alone cannot block solar under current NC law, but an express restriction in the recorded declaration may be enforceable under subsection (d) — at least until HB 856 passes.

2. Ask whether any homeowner in the community has installed solar. If yes, that's a good sign. If the HOA has denied solar applications, ask on what basis.

3. Check the roof orientation. A south-facing front roof in an HOA community creates the most common conflict: optimal solar placement is on the front of the house. Under Belmont v. Farwig, an HOA cannot force you to a suboptimal roof surface if the declaration doesn't expressly restrict solar.

4. Look at when the declaration was recorded. G.S. § 22B-20 applies to restrictions recorded on or after October 1, 2007. If the community's declaration predates this, the analysis may differ — though the statute's broad prohibition on restrictions that "have the effect of prohibiting" solar still provides significant protection.

5. Check for supplementary declarations. If the community was built in phases, your lot may have been annexed via a supplementary declaration recorded after October 1, 2007, even if the original declaration is older. The annexation date matters.

For Homeowners: What to Do If Your HOA Says No

1. Request the denial in writing. Get the specific basis for the denial — which provision of which document. This matters enormously. A denial based on general ARC discretion is almost certainly unenforceable under Belmont v. Farwig. A denial based on an express solar restriction in the recorded declaration is a different (though still potentially challengable) situation.

2. Check whether the restriction is in the recorded declaration or in separate guidelines. If the HOA is relying on ARC guidelines, design standards, or rules adopted by the board — rather than the recorded covenant — the restriction likely does not qualify for the subsection (d) exception.

3. Cite the law. Many HOA boards and property management companies are not aware of G.S. § 22B-20 or the Farwig ruling. A written response citing the statute, the Supreme Court case, and the specific deficiency in the denial (e.g., "the declaration does not expressly restrict solar collectors") may resolve the dispute without litigation.

4. Note the attorney's fees provision. G.S. § 22B-20 allows courts to award costs and reasonable attorney's fees to the prevailing party. This is worth mentioning in any written response — it changes the HOA's cost-benefit calculation.

5. Document everything. Keep copies of your application, the denial letter, all correspondence, your system specifications, and any evidence of how moving the panels would reduce efficiency. If the HOA suggested a different roof surface, get your installer to provide a written comparison of estimated production at both locations.

6. Consult an attorney if the HOA escalates. If fines or liens are threatened, get legal counsel. The Farwig family's experience — daily fines and threatened foreclosure — shows that some HOAs will escalate aggressively. The law is on your side, but you need someone to assert it properly.

Sources

NC Statutes

Case Law

Pending Legislation

Property Value Studies

Additional Resources

This guide is published by Not Safe For Solar and is intended for informational purposes only. It is not legal advice. Laws and pending legislation may change. Consult a licensed North Carolina attorney for advice specific to your situation.