Solar doesn't raise your property taxes.
Through January 1, 2027.
California Revenue and Taxation Code §73 currently excludes qualifying solar systems from property tax reassessment as new construction. That exclusion is scheduled to sunset on January 1, 2027. Systems placed in service before that date keep the exclusion through the next change in ownership. Here's what it means and what to do with the information.
Get a Free QuoteWhat §73 actually does
and how it works.
In California, adding improvements to your home normally triggers a property tax reassessment on the added value. If you put on a new deck, add a room, or make significant improvements, your assessed value goes up and so does your property tax bill.
California Revenue and Taxation Code §73 currently exempts qualifying active solar energy systems from that reassessment. When you add solar under the current exclusion, your assessed value stays the same as if you had not added it. You do not pay property taxes on the system's value for as long as you own the home.
This is not a rebate or a check. It is the absence of a property tax increase you would otherwise face. For a $28,000 solar system, avoiding reassessment on that value at a typical 1.1% to 1.25% effective rate saves roughly $308 to $350 per year, compounding over time as the assessment would otherwise have grown.
The exclusion was extended and modified multiple times. SB 710, signed October 2025, sets the current sunset at January 1, 2027. Systems placed in service before that date are grandfathered and keep the exclusion through the next change in ownership.
What it saves on a typical install
Example: $28,000 cash solar install, Sacramento County
Illustrative estimate. Your county rate, assessed value, and exclusion outcome may differ. Consult your county assessor and a property tax professional.
Permission to Operate,
not contract date, is what counts.
The exclusion applies to systems placed in service, meaning systems that have received Permission to Operate from the utility. The contract date does not control eligibility. The PTO date does.
PTO before Jan 1, 2027
Your system qualifies for the §73 exclusion. The exclusion continues through your ownership of the home. When you sell, the new owner can apply to continue it.
PTO after Jan 1, 2027
The exclusion may no longer apply. Your system's value may be added to your property's assessed value. Consult your county assessor's office and a property tax professional before assuming exclusion.
Install timeline to PTO: 4 to 10 weeks
From signed contract to Permission to Operate, solar installations typically take 4 to 10 weeks. Contracts signed today in early 2026 can realistically achieve PTO before January 1, 2027 in most NorCal jurisdictions.
We do not use the January 1, 2027 date as a sales tactic. The exclusion is one factor in the overall math, not a reason to rush a decision. We present it as information because homeowners making a 2026 purchase decision should know it exists and when it changes. Whether it matters to your situation is a question for your county assessor, not for us.
What qualifies and
what might not.
Generally qualifies
- Rooftop solar panels installed on a primary or secondary residence
- Inverters and racking installed as part of a qualifying solar energy system
- Battery storage installed together with a qualifying solar energy system (in most county assessor interpretations)
- Systems placed in service before January 1, 2027
- Homeowner-owned systems (cash purchase)
Confirm with your assessor
- Battery storage installed without solar — may not qualify under §73
- Leased systems — the exclusion may apply to the property owner differently when equipment is not owned by the homeowner
- Systems placed in service after January 1, 2027 — exclusion may not apply
- Ground-mounted systems — application varies by county
- Multi-unit properties — eligibility depends on property type and county treatment
California property tax. Under California Revenue and Taxation Code §73, qualifying active solar energy systems are excluded from property tax reassessment as new construction. The exclusion is currently scheduled to sunset on January 1, 2027 (per SB 710, signed October 2025). Systems that qualify for the exclusion before January 1, 2027 continue to receive the exclusion until the next change in ownership. Battery storage alone, without solar, may not qualify. Consult your county assessor's office (Sacramento, El Dorado, or Placer) to confirm how the exclusion will be applied to your installation.
Filing the exclusion
with your county.
The property tax exclusion does not apply automatically. You file a claim with your county assessor's office. The claim tells the assessor that your new solar system is a qualifying active solar energy system and should be excluded from reassessment.
We provide you with the documentation you need after installation, including the system specifications and the permit and interconnection records that support the claim. The filing process itself is handled by you directly with your county assessor, or by a property tax professional you hire.
The three county assessors in our service area:
Sacramento County
assessor.saccounty.govEl Dorado County
edcgov.us/Government/assessorPlacer County
placer.ca.gov/assessor
Also worth reading.
2026 Tax Credit
The federal §25D credit ended Dec 31, 2025. Here's what changed and what's still available.
See what changed →SMUD Rebate
Up to $10,000 for SMUD customers. Available now, first come first served.
Full details →How It Works
Lease vs cash. The property tax exclusion applies only to cash buyers. See both paths.
Compare paths →Selling with Solar
What happens to the property tax exclusion when you sell. How solar affects your sale.
Learn more →Property tax questions
we hear every week.
Does solar increase my property taxes in California?
Not if your system is placed in service before January 1, 2027. California Revenue and Taxation Code §73 currently excludes qualifying active solar energy systems from property tax reassessment as new construction. The exclusion is scheduled to sunset January 1, 2027, per SB 710. Systems that qualify before that date keep the exclusion until the next change in ownership. Consult your county assessor to confirm eligibility for your specific installation.
When does the California solar property tax exclusion end?
The exclusion is scheduled to sunset January 1, 2027, under SB 710, signed October 2025. Systems placed in service and enrolled before that date continue to receive the exclusion until the next change in ownership. Systems installed after January 1, 2027 may be subject to property tax reassessment. Consult your county assessor to confirm how this applies to your situation.
Does battery storage qualify for the property tax exclusion?
Battery storage alone, without solar, may not qualify for the §73 exclusion. A battery paired with a qualifying active solar energy system may qualify, but this depends on how your county assessor applies the statute. Consult your Sacramento, El Dorado, or Placer County assessor's office to confirm how the exclusion will be applied to your specific installation.
Does the property tax exclusion apply to a lease?
The §73 exclusion applies to the property owner. On a prepaid lease, the financing company owns the system. Whether the exclusion applies in a lease scenario depends on how the county assessor treats the equipment. Consult your county assessor and a property tax professional before assuming the exclusion applies to a leased system.
What happens to the property tax exclusion when I sell my home?
A change in ownership triggers a property tax reassessment. The new owner can apply to continue the §73 exclusion if it still exists and if the system still qualifies. The exclusion is not automatically inherited. The buyer's eligibility depends on the law at the time of sale and whether they file the appropriate claim with the county assessor. See our Selling with Solar page for more detail.
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on your home in 2026.
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