(a) In this section:
(1) “Municipally owned utility” has the meaning assigned by § 11.003, Utilities Code.
(2) “Small commercial customer” has the meaning assigned by § 39.202(o), Utilities Code.
(3) “Solar energy device” has the meaning assigned by § 171.107, Tax Code.
(b) A municipality may not prohibit or restrict the installation of a solar energy device by a residential or small commercial customer except to the extent:
(1) a property owner’s association may prohibit the installation under Sections 202.010(d)(1) through (7), Property Code; or
(2) the interconnection guidelines and interconnection agreement of a municipally owned utility serving the customer’s service area, the rules of the Public Utility Commission of Texas, or the protocols of an independent organization certified under § 39.151, Utilities Code, limit the installation of solar energy devices due to reliability, power quality, or safety of the distribution system.