DC disconnect location on PV systems

[stevecarr]

I was recently given a correction notice for locating a non fused DC disconnect inside a garage of a dwelling and not on the roof near the modules. The system is a Net metered SMI 2500 connected to 21 sharp 140W modules that are connected in series with a max open circuit voltage of 521 and short circuit rating of 7.81 amps. NEC 690.14 (C)(1)(5) says that the disconnect must be in a readily accessible area and that it does not need to be located at the modules. It says that the disconnect can be either outside or inside nearest the point that the conductors enter the building. The conductors run in PVC from the roof of the house down and interior wall into the Square D HU361 non fused disconnect located 15 feet below in the garage basement. My question is... Is the location of the disconnect wrong and does it need to be fused