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California Solar Property Tax Exemption Extended

CA homeowners will be able to go solar without higher tax burdens through 2026

The uncertainty about new solar net metering policies in California continues to drag on. Still, in many other respects, the Golden State continues to be a leader in solar-friendly policies. We recently reported on the passage of a new law requiring California’s largest counties to implement online permitting for solar projects. Another new measure just signed into law by the governor will ensure that California homeowners can continue to go solar without worrying about the impact on their property taxes.

California has had a law on the books which protects homeowners from seeing their property tax bill increase as a result of going solar since the beginning of the 2000’s, but it was set to expire at the end of 2024. Senate Bill 1340 extends this exemption for another two years.

It’s interesting to note that in signing the new bill into law, California Governor Gavin Newsom explicitly referred to it as a “temporary” extension. There was substantial opposition to extending the solar property tax exemption from some local governments. Why? Primarily because the exemption applies to large-scale solar farms as well as residential solar. This means that localities where industrial solar farms have sprung up feel they’re missing out on substantial revenue. California officials find themselves trying to walk a tightrope as they balance the state’s forward-thinking renewable energy goals against other policy concerns.

For right now, SB 1340 becoming law means that Californians can continue to enjoy all the benefits of going solar, including adding value to their homes, without a higher property tax burden. If you’re a California homeowner who would like to know more about how going solar can benefit you, schedule a talk with one of our expert energy consultants today.

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