Akeena installed the panels—18 that line the rooftop and 18 that are less visible—several weeks ago after receiving a permit from the town of Los Gatos on Jan. 10.

Company employers had installed an 18-panel photovoltaic system atop the building in 2002 thinking that none of the panels were visible, as required by a town ordinance. But town staff later found that three panels were visible from across the street.

The planning commission required the company to screen the panels, and the town council upheld that decision. Company president Barry Cinnamon sued the town, alleging violations of the California Solar Rights Act.

Cinnamon dropped the suit last fall when Gov. Arnold Schwarzenegger signed a bill modifying that act. State legislation governing solar equipment changed Jan. 1 of this year to say that, among other things, review of applications to install solar panels "shall be limited to the building official's review of whether it meets all health and safety requirements of local, state, and federal law."

Cinnamon submitted a new application Jan. 3, and, as required by the new laws, town planning officials approved it administratively.

"It was as smooth as anything we've ever done in the town," Cinnamon said. "No hitches, no questions, no planning department issues."

Now, the solar panels provide all of the power needed to run Akeena's offices. On bright days with minimal office equipment usage, the system banks excess energy to provide electricity on hotter days, when the air-conditioning system is run at full blast.

Cinnamon said he believes the new look is an aesthetic improvement, too.

"We used this sloped blue glass as an architectural element," he said. "Everybody who's looked at it has said it looks nice."

In addition, the panels screen ventilation and other equipment.

Town Attorney Orry Korb said that the new legislation was not necessarily a green light for other developers and business owners to use solar equipment as screening material.

"The legislation we're dealing with is pretty vague," he said.

"It doesn't say anything about applications that are subject to scrutiny for other reasons."

Korb said that someone who submitted an application for a five-story solar array, for example, should not expect to get automatic approval.

Cinnamon said he is ready to move on.

"It's a major relief," he said. "It was a very difficult decision for us to make to have that legal dispute with the town, because we like the town and we like being here."