EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0004* HOUSE BILL 4 N1 5lr1517 HB 366/24 – ENT (PRE–FILED) CF SB 120 By: Delegate Smith Requested: October 30, 2024 Introduced and read first time: January 8, 2025 Assigned to: Environment and Transportation Committee Report: Favorable House action: Adopted Read second time: February 11, 2025 CHAPTER ______ AN ACT concerning 1 Restrictions on Use – Solar Collector Systems – Alteration 2 FOR the purpose of prohibiting a restriction on use regarding land use that increases the 3 cost of installing a solar collector system by at least a certain percentage over a 4 certain cost or that reduces the efficiency of the solar collector system by at least a 5 certain percentage under a certain level of energy generation; authorizing a 6 community association to prohibit the installation of a solar collector system in the 7 common area or common elements within the real estate development served by the 8 community association; authorizing a community association to impose reasonable 9 restrictions on the installation of a solar collector system in the common area or 10 common elements; authorizing a community association to install a solar collector 11 system in the common area or common elements provided the installation is not 12 otherwise prohibited by applicable law; and generally relating to regulation of solar 13 collector systems. 14 BY repealing and reenacting, with amendments, 15 Article – Real Property 16 Section 2–119 17 Annotated Code of Maryland 18 (2023 Replacement Volume and 2024 Supplement) 19 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 That the Laws of Maryland read as follows: 21 2 HOUSE BILL 4 Article – Real Property 1 2–119. 2 (a) (1) In this section the following words have the meanings indicated. 3 (2) “Restriction on use” includes any covenant, restriction, or condition 4 contained in: 5 (i) A deed; 6 (ii) A declaration; 7 (iii) A contract; 8 (iv) The bylaws or rules of a condominium or homeowners 9 association; 10 (v) A security instrument; or 11 (vi) Any other instrument affecting: 12 1. The transfer or sale of real property; or 13 2. Any other interest in real property. 14 (3) “Solar collector system” means a solar collector or other solar energy 15 device, the primary purpose of which is to provide for the collection, storage, and 16 distribution of solar energy for electricity generation, space heating, space cooling, or water 17 heating. 18 (4) “Solar easement” means an interest in land that: 19 (i) Is conveyed or assigned in perpetuity; and 20 (ii) Limits the use of the land to preserve the receipt of sunlight 21 across the land for the use of a property owner’s solar collector system. 22 (b) (1) A restriction on use regarding land use may not impose or act to impose 23 unreasonable limitations on the installation of a solar collector system on the roof or 24 exterior walls of improvements, provided that the property owner owns or has the right to 25 exclusive use of the roof or exterior walls. 26 (2) For purposes of paragraph (1) of this subsection, [an unreasonable 27 limitation includes a limitation that: 28 (i) Significantly increases the cost of the solar collector system; or 29 HOUSE BILL 4 3 (ii) Significantly decreases the efficiency of the solar collector 1 system] A RESTRICTION ON USE IS UNREASONABL E IF APPLICATION OF THE 2 RESTRICTION ON USE T O A PARTICULAR PROPO SAL: 3 (I) INCREASES THE INSTALL ATION COST OF THE SO LAR 4 COLLECTOR SYSTEM BY AT LEAST 5% OVER THE PROJECTED C OST OF THE INITIALLY 5 PROPOSED INSTALLATIO N; OR 6 (II) REDUCES THE ENERGY GE NERATED BY THE SOLAR 7 COLLECTOR SYSTEM BY AT LEAST 10% BELOW THE PROJECTED ENERGY 8 GENERATION OF THE IN ITIALLY PROPOSED INS TALLATION. 9 (3) (I) THE OWNER SHALL PROVI DE DOCUMENTATION THA T IS 10 SATISFACTORY TO THE COMMUNITY ASSOCIATIO N TO SHOW THAT THE R ESTRICTION 11 IS UNREASONABLE UNDER PARAGRAPH (2) OF THIS SUBSECTION . 12 (II) THE DOCUMENTATION REQ UIRED UNDER SUBPARAG RAPH 13 (I) OF THIS PARAGRAPH SH ALL BE PREPARED BY A N INDEPENDENT SOLAR PANEL 14 DESIGN SPECIALIST WH O: 15 1. IS CERTIFIED BY THE NORTH AMERICAN BOARD OF 16 CERTIFIED ENERGY PRACTITIONERS ; OR 17 2. HAS ATTESTED BY AFFID AVIT TO DESIGNING AT 18 LEAST 30 SOLAR COLLECTOR SYST EMS IN THE COURSE OF TRADE WITHIN THE PRI OR 19 3 YEARS. 20 (4) (I) A COMMUNITY ASSOCIATIO N MAY PROHIBIT OR RE STRICT 21 THE INSTALLATION OF A SOLAR COLLECTOR SYSTEM IN T HE COMMON AREA OR 22 COMMON ELEMENTS WITH IN THE REAL ESTATE D EVELOPMENT SERVED BY THE 23 ASSOCIATION. 24 (II) A COMMUNITY ASSOCIATIO N MAY ESTABLISH REAS ONABLE 25 RESTRICTIONS AS TO T HE NUMBER , SIZE, PLACE, OR MANNER OF PLACEME NT OR 26 INSTALLATION OF A SOLAR COLLECTOR SYSTEM INSTALLED IN THE COMMON AREA 27 OR COMMON ELEMENTS . 28 (III) NOTWITHSTANDING THE P ROVISIONS OF THE GOV ERNING 29 DOCUMENTS AND PROVID ED THAT THE INSTALLA TION IS NOT OTHERWIS E 30 PROHIBITED BY APPLIC ABLE LAW, THE BOARD OF DIRECTO RS FOR A COMMUNITY 31 ASSOCIATION SHALL HA VE DISCRETION TO INS TALL A SOLAR COLLECT OR SYSTEM 32 IN THE COMMON AREA O R COMMON ELEMENTS WI THIN THE REAL ESTATE 33 DEVELOPMENT SERVED B Y THE COMMUNITY ASSO CIATION. 34 4 HOUSE BILL 4 (c) (1) A property owner who has installed or intends to install a solar collector 1 system may negotiate to obtain a solar easement in writing. 2 (2) Any written instrument creating a solar easement shall include: 3 (i) A description of the dimensions of the solar easement expressed 4 in measurable terms, including vertical or horizontal angles measured in degrees or the 5 hours of the day on specified dates when direct sunlight to a specified surface of a solar 6 collector system may not be obstructed; 7 (ii) The restrictions placed on vegetation, structures, and other 8 objects that would impair the passage of sunlight through the solar easement; and 9 (iii) The terms under which the solar easement may be revised or 10 terminated. 11 (3) A written instrument creating a solar easement shall be recorded in the 12 land records of the county where the property is located. 13 (d) This section does not apply to a restriction on use on historic property that is 14 listed in, or determined by the Director of the Maryland Historical Trust to be eligible for 15 inclusion in, the Maryland Register of Historic Properties. 16 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 17 October 1, 2025. 18 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.