Solar panels and battery storage

Jump into the legal memorandum prepared by Lidstone & Co.

As communities look for ways to reduce emissions, manage electricity demand, and improve local energy systems, municipalities are exploring where and how they can influence the installation of solar panels and battery storage through land use and development processes. While municipal authority in this area is constrained, particularly where requirements would affect building systems regulated at the provincial level, local governments do have limited pathways to require or secure the installation of solar panels and battery storage systems. Their authority depends on the regulatory tool used and is shaped by the Local Government Act, the Building Act, and property law principles. They can likely require solar panels and battery storage systems, depending on the context, through development permits, land ownership, or voluntary legal agreements.

Furthermore, major roof retrofits can present a practical opportunity to add rooftop solar photovoltaic (PV) systems with less disruption and lower incremental cost than retrofitting at a later date. For local governments, linking solar installation to roof work can support energy conservation and greenhouse gas reduction objectives. In BC, the ability to require solar PV during a roof retrofit is primarily tied to Development Permit Areas (DPAs) designated for energy conservation or GHG reduction. Whether such a requirement is lawful depends heavily on careful drafting and the use of appropriate land‑use authority.

Finally, a key question is whether simply installing the equipment is enough, or whether it must function as intended. DPA authority is tied to achieving specific objectives, which means that operational performance may be an important consideration when determining compliance.

Regulatory pathways

Development Permit Area to require solar panels and battery storage

Last update: Jun. 2026

Local governments could likely use Development Permit Areas (DPAs) designated for energy conservation or the reduction of greenhouse gas emissions to require solar panels, battery storage, or both. This authority allows municipalities to impose conditions on development where those conditions relate to exterior building features or external systems, rather than internal building standards. A carefully written DPA could likely require solar PV installation where a building is undergoing a major roof retrofit.

How it works

Under sections 488(1)(h) and (j) of the Local Government Act, local governments may, through their official community plan, designate DPAs to promote energy conservation and GHG reduction.

  • Within a designated DPA, a landowner must obtain a development permit before constructing, adding to, or altering a building or structure.
  • Section 491(9) of the Local Government Act allows energy conservation or GHG reduction DPAs to include requirements related to:
    • landscaping;
    • siting of buildings and structures;
    • form and exterior design of buildings and structures;
    • specific features in the development; and
    • machinery, equipment, and systems external to buildings.

Section 5 of the Building Act limits local governments from imposing building standards except for matters classified as “unrestricted.”

  • The Building Act General Regulation designates the form and exterior design of buildings, and machinery, equipment, and systems external to buildings, as unrestricted matters within energy conservation or GHG reduction DPAs.
  • Court decisions interpreting “form” and “exterior design” indicate these terms relate to shape, appearance, and exterior features.
  • Although there is no case law specifically addressing section 491(9), this authority likely allows local governments to require exterior equipment such as solar collectors and battery storage.

The authority to impose requirements respecting specific features of development, including external systems, likely allows compulsory connection to solar panels and battery storage external to the building.

Does the equipment need to be operational?

A local government can likely require that solar PV panels or other external equipment installed under a DPA be operational. This is because DPA requirements must support the stated objective of energy conservation or greenhouse gas reduction, which non‑operational equipment would not achieve.

  • As noted above, Under section 488(1)(h) and (j) of the Local Government Act, local governments may designate DPAs to promote energy conservation and the reduction of greenhouse gas emissions. The Official Community Plan must describe the objectives for the DPA and specify guidelines for how those objectives will be achieved.
  • Requirements specified by the DPA must be imposed to provide for energy conservation and GHG reduction.
  • Solar PV panels that are not connected or operational would not provide these outcomes.

On this basis, a local government could likely require that solar panels be operational in order to meet the DPA objective. While it could be argued that a requirement to install solar panels implies that they must function, this is not explicit. To avoid uncertainty, a local government could specify in the DPA guidelines that required equipment must be operational, and it may also require a covenant addressing operation and maintenance.

Leverage local government ownership of land for solar

Last update: Jun. 2026

Where a local government owns land, it can likely require solar panels or battery storage through its role as landowner, rather than through regulatory authority. These requirements can be imposed through development, leasing, or land transfer arrangements.

How it works

  • If a local government develops land it owns, it may install solar panels and use battery storage directly.
  • If the local government leases or licenses land to a third party for development, it may include requirements for solar panels or battery storage in the lease or license agreement.
  • If land is transferred to a third party, the local government may retain control through mechanisms included in the purchase and sale agreement, such as:
    • requiring the registration of a section 219 covenant that imposes solar or battery storage requirements;
    • retaining an option to purchase or right of first refusal if conditions are not met; or
    • including a reverter under section 10 of the Property Law Act, allowing the land to revert to the local government if conditions—such as installing solar panels or battery storage—are not satisfied.

Covenant requiring installation of solar panels and battery storage

Last update: Jun. 2026

A local government could likely obtain a section 219 covenant requiring an owner or developer to install solar panels, battery storage, or both. These covenants are private land‑use controls registered on title and can be used where the requirements relate to land use or development.

How it works

  • A section 219 covenant may be registered where its terms are connected to:
    • the use of land;
    • the construction of buildings;
    • subdivision of land; or
    • the protection of an amenity.
  • The covenant can include binding commitments to install a specified number of solar panels or a defined amount of battery storage.
  • Local governments could obtain a section 219 covenant during:
    • rezoning;
    • subdivision approval; or
    • development permit or development variance permit applications.
  • The covenant should clearly describe the required solar panels and/or battery storage and specify the documentation or evidence needed to demonstrate compliance.

Glossary Entry

Development Permit Areas

A planning tool that lets local governments guide how new development supports certain purposes, including energy efficiency and climate goals.

Under the Local Government Act, local governments can designate areas in their Official Community Plan (OCP) as Development Permit Areas (DPAs). Within a DPA, landowners must apply for a permit before starting construction or making major changes to buildings or land.

DPAs aimed at reducing greenhouse gas emissions or promoting energy conservation can include requirements for landscaping, building siting, exterior design, or energy systems like heat pumps or solar panels.

DPAs can apply to a single parcel or across an entire municipality, depending on local goals and planning context.

Glossary Entry

Local Government-Owned Land

Land owned by local governments can be a powerful tool for advancing public priorities, including affordable housing and sustainable development.

Local governments can manage their land in several ways, including:

  • Keeping full ownership and granting development rights to others
  • Leasing the land (allowing exclusive use while retaining ownership)
  • Licensing it for specific uses (without granting exclusive control)

They can also include conditions, such as covenants or options to repurchase, to maintain control when transferring ownership. In some cases, a reverter clause allows land to return to the government if certain conditions aren’t met. In the case of highways, such as roads or sidewalks, local governments can only grant a licence to use the land and not a lease.

Glossary Entry

Section 219 Covenants

A legal agreement registered on a property title that allows local governments to secure commitments from landowners.

Section 219 covenants, under the Land Title Act, are a way for local governments to enforce a landowner’s promise to do (or not do) certain things on their property—such as protecting a natural area, limiting certain uses, or ensuring specific construction standards. These covenants don’t need to benefit another property and can apply to any lot, though they’re often used in larger or more complex developments due to the administrative work involved.

A local government may consider a landowner’s offer for a covenant alongside rezonings, development permits, or subdivision approvals. Covenants are legally enforceable and may include financial penalties or specific legal remedies if breached.

Glossary Entry

Solar panels and battery storage

As communities look for ways to reduce emissions, manage electricity demand, and improve local energy systems, municipalities are exploring where and how they can influence the installation of solar panels and battery storage through land use and development processes. While municipal authority in this area is constrained, particularly where requirements would affect building systems regulated at the provincial level, local governments do have limited pathways to require or secure the installation of solar panels and battery storage systems. Their authority depends on the regulatory tool used and is shaped by the Local Government Act, the Building Act, and property law principles. They can likely require solar panels and battery storage systems, depending on the context, through development permits, land ownership, or voluntary legal agreements.

Furthermore, major roof retrofits can present a practical opportunity to add rooftop solar photovoltaic (PV) systems with less disruption and lower incremental cost than retrofitting at a later date. For local governments, linking solar installation to roof work can support energy conservation and greenhouse gas reduction objectives. In BC, the ability to require solar PV during a roof retrofit is primarily tied to Development Permit Areas (DPAs) designated for energy conservation or GHG reduction. Whether such a requirement is lawful depends heavily on careful drafting and the use of appropriate land‑use authority.

Finally, a key question is whether simply installing the equipment is enough, or whether it must function as intended. DPA authority is tied to achieving specific objectives, which means that operational performance may be an important consideration when determining compliance.