NRS 116.334 Adoption of rules and regulations by association related to installation of distributed generation system; conditions and limitations.

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1. An association whose governing documents authorize the association to impose restrictions on architectural improvements may adopt rules and regulations governing the installation of distributed generation systems that comply with the provisions of this section.

2. If an association adopts rules and regulations governing the installation of distributed generation systems pursuant to subsection 1, the rules and regulations must:

(a)Not conflict with the provisions of the National Electric Code, any local ordinance or any state law or regulation. The provisions of the rules and regulations do not apply to the extent of any such conflict.

(b)Require the solar installation company that will install the distributed generation system to be properly licensed.

(c)Not require a unit’s owner to comply with any provision of the rules and regulations adopted pursuant to paragraphs

(a)and

(b)of subsection 3 if the costs of complying with the provision exceeds 3 percent of the cash cost of the installation of the distributed generation system. A unit’s owner may demonstrate that the costs of complying with the provision exceed 3 percent of the cash cost of the installation of the distributed generation system by delivering to the association a written estimate that:

(1)Is prepared by a solar installation company that is properly licensed pursuant to chapter 624 of NRS and is not affiliated with either the unit’s owner or the association;

(2)Is dated not more than 60 days before delivery of the written estimate to the association;

(3)Itemizes all costs of complying with the provision, including, without limitation, labor, materials, professional fees, permit fees, inspection fees, financing charges and the costs of change orders; and

(4)Shows that the costs of complying with the provision exceed 3 percent of the contract price for the installation of the distributed generation system.

3. Except as otherwise provided in paragraphs

(a)and

(c)of subsection 2, in addition to the requirements set forth in subsection 2, if an association adopts rules and regulations governing the installation of a distributed generation system pursuant to subsection 1, the rules and regulations may require a unit’s owner to:

(a)Install the solar panels of the distributed generation system in a manner so that they do not face a street, so long as complying with this requirement does not result in a decrease in the production of the distributed generation system of more than 10 percent, as determined using the PVWatts Calculator maintained by the National Renewable Energy Laboratory of the United States Department of Energy.

(b)Paint all conduits of the distributed generation system to match the exterior of the unit to which the system is affixed.

(c)Store all batteries for the distributed generation system in a garage.

(d)Place all inverters of the distributed generation system outside of any street and reasonably out of view of other unit’s owners.

(e)If the distributed generation system will be installed on a roof or other exterior portion of a unit for which the association is responsible for the maintenance, repair or replacement, enter into an agreement with the association setting forth the respective rights and obligations of the unit’s owner and the association with respect to the distributed generation system. The association may require the agreement to be recorded and to include provisions in the agreement which:

(1)Provide that the unit’s owner is solely responsible for any damage caused to the roof or exterior portion that is caused by the installation, maintenance, repair or replacement of the distributed generation system.

(2)Require the unit’s owner, at his or her expense, to remove the distributed generation system from the roof or exterior portion if the association determines such action to be necessary for the maintenance, repair or replacement of the roof or exterior portion.

(3)Authorize the association to cause the distributed generation system to be removed from the roof or exterior portion if, after reasonable notice has been provided to the unit’s owner, the unit’s owner fails to remove the distributed generation system as required pursuant to subparagraph

(2)and assess the costs of the removal, relocation, storage and replacement against the unit’s owner.

(4)Require the unit’s owner to install the distributed generation system in accordance with the terms of the request submitted by the unit’s owner to the association and approved by the association.

(5)Require the unit’s owner to maintain a policy of insurance that names the association as an additional insured and provides coverage for any losses or damages caused by the installation, maintenance, repair or replacement of the distributed generation system.

(6)Require the unit’s owner to indemnify the association and its agents from any and all liability, claims, damages and costs, including, without limitation, attorney’s fees, resulting from the installation, maintenance, repair or replacement of the distributed generation system.

(7)Provide the association the right to inspect the condition of the distributed generation system.

(8)Require the unit’s owner to disclose to potential purchasers of the unit all rights and responsibilities concerning the distributed generation system.

4. An association may not:

(a)Unreasonably restrict, prohibit or withhold approval for a unit’s owner to install any type of physical barrier around the distributed generation system to deter the intrusion of animals or to hide components of the system for aesthetic purposes; or

(b)Except as otherwise provided in this paragraph, require the installation of a particular type of physical barrier described in paragraph (a). The association may require such a physical barrier to be a particular color if the color is commercially available as a stock item, rather than an item requiring specialization or customization. If the color is not so available, the association may require the physical barrier to be black or a color complementary to the solar panels or racking system of the distributed generation system.

5. As used in this section, “distributed generation system” has the meaning ascribed to it in NRS 598.9804 .