The lawsuit, filed by Akeena Solar, a solar-power company on University Avenue, alleges that the town failed to uphold its responsibility to accommodate solar-power systems as mandated by the Solar Rights Act. Under the act, cities and counties may not enact an ordinance that prohibits or unreasonably restricts the use of solar-energy systems.

The act does not apply to ordinances that impose "reasonable" limits on such systems. "Reasonable" restrictions are defined as those that do not significantly increase the cost of the system or significantly decrease its efficiency.

In a document filed Jan. 15, the town stated it did not have enough information to respond to allegations that it did not act in accordance with the act. Instead, the town asserted that the petitioner, Akeena Solar, had not exhausted all the "administrative remedies on the question of whether the town has improperly applied its rooftop equipment screening requirement" and therefore the company did not have adequate grounds for the lawsuit.

Akeena Solar President Barry Cinnamon said that he was not surprised by the town's response, although he was puzzled that the town felt that not all the "administrative remedies" had been explored.

"We have been really careful to go through the process step by step," he said.

The dispute between Cinnamon and the town began more than a year ago when Cinnamon installed 18 solar panels on his company's rooftop. Three of those panels were found to be visible from the street, a violation of town rules.

Under the town's general plan, "mechanical equipment" mounted on commercial buildings must be screened. Town officials consider solar-panel systems—like air-conditioning units—to fall in this category.

Cinnamon has long protested labeling solar-power systems as "mechanical," arguing that such equipment has moveable parts, something solar panels do not have.

But last August the planning commission upheld its decision to classify solar panels as "mechanical" and ordered Cinnamon to either remove or cover up his panels. Cinnamon appealed the decision to the town council. Council members unanimously voted to uphold the decision made by the planning commission.

Cinnamon filed a lawsuit against the town in early November. Cinnamon's lawyer, Nicholas Petredis, said that his client did not want to take this step against the town, but that there was little else they could do.

"We were reluctant warriors," he said.

Town officials would not comment on this story.

The town now has up to six months to prepare an administrative record consisting of all town documents related to the case for the court. After the record is filed, the two sides must complete additional legal paperwork before a court date is set.

Cinnamon, however, is still looking to reach a compromise with the town.

"Any normal, rational citizen would say, 'Why is the town spending so much money to fight this when they claim to be solar friendly?'" he said. "They should just direct efforts to make solar accessible rather than to fighting a company."