California Solar Laws: HOAs, Contracts, Permits and More

At a glance

California's solar laws mostly protect the buyer. They set what you must be shown before signing, give you a short window to back out, stop HOAs and cities from blocking a reasonable system, and keep the system off your property tax if it's finished in time. In the order you'll meet them:

STEP 1Before you signA disclosure document and a contract with set terms
STEP 2After you signThree business days to cancel, five if you are 65 or older
STEP 3Your HOAReasonable rules only, and 45 days to answer
STEP 4Your cityA fast permit, a capped fee, one inspection
STEP 5After it runsNet billing, and no property tax on the system

Before you sign

Four rules shape the paperwork:

B&P Code 7169

A solar disclosure document comes first

A solar company has to give you the state's solar energy system disclosure document before a sale, financing deal or lease is completed. Its front page shows the total cost and payments, including financing, how to complain, and your right to cancel.

Applies to: Sales, loans and leases of home systems from 1 kW up

B&P Code 7159

The down payment is capped

A home improvement contract must say the down payment can't be more than $1,000 or 10% of the contract price, whichever is less, and it must include the right-to-cancel notice.

Applies to: Home improvement contracts, including solar

B&P Code 7048

The installer needs a license

The contractor licensing law exempts only jobs under $1,000 in total that need no building permit. A rooftop solar system needs a permit, so whoever installs it must be licensed by the Contractors State License Board.

Applies to: Anyone who installs a system for you

B&P Code 7169(d)

Your language, on paper

The contract and the disclosure document must be in the language used in the sales pitch or in the marketing you were given.

Applies to: Sales, loans and leases

You can look up any contractor's license with the Contractors State License Board. Our guide to checking a California solar company walks through it.

Your right to cancel

Under Business and Professions Code section 7159, a home improvement contract you didn't sign at the contractor's place of business must carry a "Three-Day Right to Cancel" notice. You can cancel by email, mail, fax or by delivering a written notice to the contractor's business, by midnight of the third business day after you got a signed and dated copy of the contract. If you're a senior citizen, 65 or older under Civil Code section 1689.5, it's five business days.

If you cancel, the contractor must return what you paid within 10 days of getting your notice. Include your name, address and the date you received the signed copy. Our cancellation guide covers the details and what to do after the window closes.

HOAs and the Solar Rights Act

The Solar Rights Act, Civil Code section 714, voids any HOA rule, deed restriction or covenant that effectively prohibits or restricts solar. An HOA can still set reasonable rules: for solar electric panels, ones that add no more than $1,000 to the cost of the system as you proposed it, or cut its efficiency by no more than 10%.

Can an HOA ...	Answer	Law
Ban rooftop solar on the home you live in	No	Civil Code 714.1(b)(1)
Make you get a vote of the members	No	Civil Code 714.1(b)(2)
Require its approval first	YesIn writing, within 45 days	Civil Code 714(e)
Set rules that add more than $1,000 or cut output more than 10%	No	Civil Code 714(b), (d)
Decide what goes on common areas	Yes	Civil Code 714.1(a)(1)
Make your installer cover damage it causes	Yes	Civil Code 714.1(a)(4)

An HOA has to treat your application like any other architectural request and answer in writing. If it hasn't denied it in writing within 45 days of getting it, the application counts as approved, unless the delay was a reasonable request for more information. An HOA that willfully breaks the law owes actual damages and a civil penalty of up to $1,000, and the winner of a lawsuit over it gets attorney's fees. Our HOA guide has more.

A row of white brick houses with all-black solar panels covering their roofs, under a clear blue sky

City permits: fast, capped and one inspection

Government Code section 65850.5 makes rooftop solar a statewide matter. Cities and counties have to approve a solar application through a building permit that checks only health and safety, and each one must have an expedited, streamlined process for small home systems, up to 10 kW AC on a single-family home or duplex. Those small systems get one inspection. A city also can't make its permit wait for your HOA's approval.

Government Code section 66015 caps what a city or county can charge for a home solar permit at $450, plus $15 for each kW above 15 kW, unless it adopts a written finding with evidence that its cost is higher. That cap runs until January 1, 2034.

New homes must come with solar

California's Energy Code, Title 24, Part 6, requires every newly built single-family home to have a solar system. Under the 2025 code, in effect since January 1, 2026, the minimum size comes from a formula based on the home's floor area and climate zone, capped by how much usable sunny roof it has. No system is needed if that usable roof is under 80 square feet or the minimum works out under 1.8 kW, and the size can be cut 25% if the home also gets a battery of at least 7.5 kWh.

Solar required by the building code doesn't earn PG&E's or SCE's bonus export credit, the CPUC says. Our new-home solar guide explains the rule.

Net billing and property tax

Net billing. The CPUC's net billing tariff covers homes at PG&E, SCE and SDG&E that applied to connect on or after April 15, 2023. Solar you use at home saves your full price; power you send to the grid earns export credits, locked for nine years for the customer who first connects the system. See NEM 3.0 in California, explained.

Property tax. Revenue and Taxation Code section 73 keeps a solar system out of your property tax assessment. A system added in 2026 qualifies only if it's finished before January 1, 2027, the Board of Equalization says, and one that qualifies stays excluded until the home changes ownership. See California solar incentives.

Next step

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Common questions

Can an HOA stop me from installing solar in California?

No. The Solar Rights Act, Civil Code section 714, voids HOA rules that effectively prohibit or restrict solar, and section 714.1 bars a general policy against rooftop solar on the building you live in. An HOA can set reasonable rules, ones that add no more than $1,000 to the cost of a solar electric system or cut its efficiency by no more than 10%.

How long does an HOA have to approve solar in California?

45 days. Under Civil Code section 714, an application that isn't denied in writing within 45 days of receipt is deemed approved, unless the delay comes from a reasonable request for more information.

How many days do I have to cancel a solar contract in California?

Three business days after you receive a signed and dated copy of the contract, or five if you're 65 or older, for a home improvement contract not signed at the contractor's place of business. Cancel in writing by email, mail, fax or delivery.

How much can a California city charge for a solar permit?

For a home system, Government Code section 66015 caps the permit fee at $450 plus $15 for each kW above 15 kW, unless the city or county adopts a written finding showing its cost is higher.

Do new homes in California have to have solar?

Yes. The California Energy Code requires newly built single-family homes to have a solar system sized by a formula, with exceptions for homes with very little usable roof or a required size under 1.8 kW. The 2025 code has been in effect since January 1, 2026.

Laws change; this is a plain-English summary, not legal advice. Statute text as in effect when we read it in October 2026. Sources: Civil Code 714 · Civil Code 714.1 · B&P Code 7169 · B&P Code 7159 · B&P Code 7048 · Civil Code 1689.5 · Government Code 65850.5 · Government Code 66015 · CEC: 2025 Energy Code · CPUC: net metering and net billing · BOE Letter to Assessors 2024/031. Reviewed October 2026.

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