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Posted by Brad Randall | Nov 3, 2026 | COMMUNITIES, Infrastructure, Multifamily, TECHNOLOGY, Trends
By: Lori Reeves, RETTC, and Valerie M. Sargent, Broadband Communities
November 3, 2026
Balcony solar is moving from a niche European product to a practical U.S. housing issue. These compact photovoltaic systems typically combine one or more panels with a microinverter and connect through a standard household receptacle. Rather than sending significant power to the grid, they are designed to offset electricity being used inside the dwelling at that moment. For apartment residents who cannot control a roof, the appeal is straightforward: a smaller purchase, a simpler setup and a chance to reduce utility costs with equipment that can move with them.
California’s SB 868, chaptered on September 30, 2026, creates a temporary streamlined pathway for qualifying portable solar generation devices. Beginning January 1, 2027, covered systems up to 1,200 watts that meet specified certification, along with electrical and outage-safety requirements, are exempt from utility interconnection requirements through January 1, 2030. Utilities may not require advance approval or device-related fees, although they may require a simple online notice with device details. The law primarily removes utility barriers; it does not give residents unlimited authority to alter or attach equipment to rental property.
New Jersey’s Garden State Balcony Solar Act, S2368/A4836, takes a broader property-rights approach when its operative provisions take effect March 1, 2027. It creates a statewide pathway for qualifying plug-in devices of up to 1,200 watts, removes specified interconnection and approval requirements, and prevents municipalities, landlords, condominium associations, and similar entities from imposing blanket prohibitions. Property owners and associations may still apply reasonable restrictions tied to safety, size, and placement.
California and New Jersey are part of a broader movement. As of October 2026, 10 states have enacted legislation addressing plug-in or balcony solar: Utah, Colorado, Connecticut, Maine, Maryland, New Hampshire, Vermont, Virginia, New Jersey, and California. Utah led the way in 2025, with nine additional states following in 2026. The laws differ, particularly in whether they remove utility barriers or also limit property restrictions. Additional legislation is being considered in other states.
Apartment operators have seen a similar property-rights issue before. The Federal Communications Commission’s Over-the-Air Reception Devices rule, known as OTARD, generally prevents landlords, associations, and local governments from enforcing restrictions that impair the installation, maintenance, or use of covered television, satellite, and fixed-wireless antennas in areas under a resident’s exclusive use or control. Since 1999, that protection has expressly reached rental balconies and patios. It does not ordinarily extend to shared roofs, exterior walls, or other common areas.
OTARD does not cover solar panels, so it is not an independent legal basis for installing a balcony solar device. The parallel is in the regulatory framework. OTARD rejects blanket bans and requirements that create unreasonable delay or cost, while preserving narrowly tailored restrictions for legitimate safety and historic-preservation concerns.
California and New Jersey are now addressing similar questions of resident rights and property restrictions, although their laws provide different levels of protection. For managers, the lesson from decades of OTARD disputes is practical: policies work best when they regulate the installation rather than prohibit the technology. A rule tied to secure mounting, fire safety, structural protection or the boundary of a private balcony is easier to defend than a blanket ban or an open-ended approval process.
As with satellite dishes, the boundaries of a resident’s private space and the rules governing exterior installations matter. However, the applicable protections differ by technology and state. Property managers should evaluate proposed solar installations under the relevant state law, building codes, and safety requirements rather than assuming OTARD’s limitations apply directly.
The first challenge is policy. A lease that simply bans every solar device may be difficult to enforce in New Jersey once the law takes effect, while California managers still need to distinguish utility permission from property permission. A better approach is working with local counsel to develop a state/locale-specific, device-specific addendum addressing placement, mounting, electrical connections, required documentation, and removal.
Safety and building operations are the larger concern. Managers should not assume that every product marketed online qualifies under state law. Communities will need a repeatable way to confirm product certification, manufacturer instructions, secure mounting, cord routing, receptacle condition, and any required utility notice.
Some considerations housing operators may want to weigh is to ensure panels not obstruct exits, fire access, sprinklers, drainage, façade maintenance, or the safe use of balconies. Other considerations for counsel should be addressing high winds, falling-object risk, and penetrations into railings or exterior walls.
Managers should coordinate early with ownership, counsel, insurers, fire-safety professionals, and electrical contractors. The goal is not to create an approval process that conflicts with state law, but to establish neutral, consistently applied rules that protect the building and its residents.
For residents, balcony solar offers a way to reduce electricity costs without a rooftop installation. However, savings depend on orientation, shade, weather, panel size, and electricity consumption during generating hours. These devices generally offset on-site consumption rather than producing traditional net-metering credits.
Residents may also underestimate installation requirements. Products must meet applicable safety standards and be compatible with the dwelling’s electrical system. Improvised adapters, damaged receptacles, and unsecured panels create risks that property policies should address.
Affordability is top of mind for renters and housing providers alike. Emerging technologies, like balcony solar, should be guided by public policy and operational plans that recognize that safety and affordability are not competing, but can be complementary. Balcony solar changes the energy conversation in multifamily housing because it puts a small generating asset directly in a resident’s hands. California’s law removes major utility barriers; New Jersey goes further by limiting blanket restrictions from landlords and local entities.
OTARD’s history offers a useful warning and a workable model: clearly define covered devices and exclusive-use areas, avoid blanket prohibitions and burdensome approval procedures, and reserve narrowly tailored authority for genuine safety and property-protection concerns.
For apartment managers, the best response is neither an automatic “no” nor an uncritical “yes.” It is a clear, safety-based process that respects resident rights, protects the property and can adapt as product standards and implementing rules mature.
Lori Reeves is senior advisor for the Real Estate Technology & Transformation Center (RETTC) and can be reached at lreeves@rettc.org. Valerie M. Sargent is a multifamily speaker, trainer and executive consultant, and is the multifamily news correspondent for Broadband Communities. Contact her website, seen here. For more information, visit http://www.nmhc.org or https://rettc.org/.
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