Does Solar Raise Your Property Tax in California?
Short answer: no — not from the solar itself. California’s active solar energy system exclusion (Revenue & Taxation Code §73) treats a qualifying rooftop system as something that does not add to your home’s assessed value, so your property tax generally doesn’t rise. Your home’s market value can still go up — that’s a different number. Here’s how the exclusion works, and the one thing that can still trigger a reassessment.
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- Installing a qualifying solar PV system does not increase your assessed value, so it generally does not raise your property tax (Revenue & Taxation Code §73).
- Your home’s market value can still rise — that’s a different number from the assessed value your tax bill is based on.
- The exclusion is scheduled to sunset on January 1, 2027 (as of July 15, 2026 — confirm the current law). Systems that qualify before then keep the exclusion until the home changes ownership.
- Selling the home is a Proposition 13 change in ownership that reassesses the whole property to market value — the solar exclusion doesn’t stop that.
The short answer: no, not from the solar itself
One of the most common worries we hear from Los Angeles and Valley homeowners is that going solar will bump up their property taxes. In California, it generally won’t.
California law treats a qualifying rooftop solar system as something that is not counted as new construction for assessment purposes. That matters because your property tax is calculated from your home’s assessed value — not its market value. Adding solar can raise what a buyer would pay for your home (its market value), but under the active solar energy system exclusion it does not add to the assessed value the county uses to bill you.
In plain terms: the panels make your home worth more to a buyer, but the assessor is told to leave them out of your assessment. That’s a separate question from whether solar raises your home’s resale value — we cover the money side in do solar panels increase home value in California? This article is strictly about property tax.
How the active solar energy system exclusion works
The rule lives in Revenue & Taxation Code §73, which excludes the construction or addition of an active solar energy system from being reassessed as new construction.
Normally, when you add real value to a property — a new room, a pool, an ADU — the county assessor adds that new construction to your assessed value and your tax goes up. §73 carves active solar energy systems out of that treatment. As the California State Board of Equalization (BOE) puts it, when an active solar energy system is installed, it is not assessed, meaning the existing assessment will not increase.
As a homeowner installing on your own roof, you usually don’t have to apply for anything special — the assessor simply doesn’t add the system’s value when your permit and installation come through. The result is the value benefit of solar without a higher tax bill.
Market value vs. assessed value vs. reassessment
The fear usually comes from mixing up three different things. Here’s how each one behaves when solar — or a sale — enters the picture.
| Event | Can raise market value? | Raises assessed value & property tax? | Reassessment trigger |
|---|---|---|---|
| Adding a qualifying solar PV system | Yes — a buyer may pay more | No — excluded under §73 | None — not treated as new construction |
| Selling your home | — | Yes — whole property reset to market value | Change in ownership (Prop 13) |
| A non-solar addition (room, ADU, pool) | Yes | Yes — that new construction is assessed | New construction |
| A solar pool or hot-tub heater | Maybe | Not excluded — may be assessed | Not a qualifying “active solar energy system” |
Sources: California BOE — Active Solar Energy System Exclusion · Rev. & Tax Code §73
What the exclusion covers — and what it doesn’t
The exclusion is for the working solar system, not for everything you happen to install alongside it.
Covered: the PV system
The active solar energy system itself — solar panels, inverters, wiring, mounting hardware and related equipment that collect, store, or distribute solar energy. This is what gets excluded from your assessed value.
Not covered: pool & hot-tub heaters
Solar swimming-pool and hot-tub heaters are specifically excluded from the exclusion under §73(b)(2). They can be assessed like any other improvement.
Dual-use & other work
A re-roof, structural work, or other improvements done at the same time are their own line items. The solar exclusion doesn’t shield non-solar construction — the assessor looks at the currently adopted rules and your project’s specifics.
New homes: the builder vs. initial-purchaser rule
If you install solar on a home you already own, this part doesn’t affect you. It matters when a builder puts solar on a brand-new house.
When a builder installs an active solar energy system in a new building and doesn’t intend to occupy it, the exclusion can pass through to the initial purchaser — the first person who buys the new home — but only if they buy before the property becomes subject to assessment (before the lien date that follows completion). The BOE’s own example: a home completed November 15, 2009 and sold by December 31, 2009 lets the buyer qualify; sold after the following lien date, the buyer does not. Once the builder has been assessed on the lien date, later purchasers are no longer eligible for the new-construction exclusion.
For the typical homeowner adding panels to an existing roof, none of this timing applies — the exclusion is automatic when the system is installed.
The 2027 sunset — and what SB 710 locked in
The exclusion isn’t permanent. It has been extended several times, and it has a scheduled end date worth knowing.
As of July 15, 2026, §73 is scheduled to be repealed as of January 1, 2027 — the date set by SB 1340 (2022), which extended the exclusion through the 2025–26 fiscal year. This date has moved before, so treat it as current-but-not-final and confirm the live status on the Board of Equalization’s page before you rely on it.
Two things soften the deadline. First, SB 710 (Blakespear), signed October 3, 2025, did not extend the sunset date — but it guaranteed that a system which qualifies for the exclusion before January 1, 2027 keeps that exclusion on and after that date, until the next change in ownership. Second, a proposed bill, AB 2389 (Irwin), would extend the exclusion for customer-sited systems of 10 kW or less through January 1, 2031. As of July 15, 2026 AB 2389 had not been enacted — it was held under submission in the Assembly Appropriations Committee on May 14, 2026 and remained pending — so it is not law and shouldn’t be counted on. Check the current status before assuming any extension.
Verify the sunset date on the day you decide
Statutory dates change. As of July 15, 2026 the exclusion is scheduled through January 1, 2027, pre-2027 systems are grandfathered by SB 710, and an extension bill (AB 2389) was still pending. Before making a decision, open the BOE active solar exclusion page and confirm the current law.
A home sale can still trigger a reassessment
Here’s the part people miss: the solar exclusion protects the solar addition, not the whole house forever.
Under Proposition 13, a change in ownership — most commonly selling the home — reassesses the entire property to its current market value, which becomes the new owner’s base-year value. That reset happens regardless of solar, and at that point the home’s market value (solar included) is what the new assessment reflects. In other words, the §73 exclusion means you don’t pay more property tax for adding solar; it does not freeze the property against the normal Prop 13 reassessment that comes with a sale.
If you’re preparing to sell, the ownership type of your system (owned, financed, or leased) matters more at closing than the tax exclusion does — we walk through that in selling a house with solar in California. And if you’re still deciding whether to install at all, see is solar still worth it in California? and typical solar panel costs.
Frequently asked
Will installing solar raise my property taxes in California?
Generally no. Under California’s active solar energy system exclusion (Revenue & Taxation Code §73), a qualifying system is not assessed as new construction, so your assessed value — and the property tax based on it — does not go up just because you added solar. Your home’s market value can still rise, but that is a separate number from the one your tax bill uses. This is general information, not tax advice.
Does solar increase my home's assessed value?
No, not the qualifying solar system. The §73 exclusion keeps the system out of your assessed value, which is what your property tax is calculated from. The panels can increase your home’s market value (what a buyer would pay) without increasing the assessed value the county bills you on.
When does the California solar property tax exclusion expire?
As of July 15, 2026, §73 is scheduled to be repealed on January 1, 2027 (a date set by SB 1340 in 2022). SB 710, signed in October 2025, did not extend that date, but it locked in that systems qualifying before January 1, 2027 keep the exclusion until the next change in ownership. A separate extension bill (AB 2389) was still pending and not enacted. Dates can change — confirm the current law on the BOE page.
If I sell my house, will the solar make the buyer's taxes go up?
A sale is a Proposition 13 change in ownership, which reassesses the whole property to its current market value for the new owner — solar or no solar. That reset is a normal part of buying a home, not something the solar exclusion causes or prevents. The §73 exclusion protects the person who installed the solar from a higher assessment; it doesn’t freeze the property against reassessment when the home is sold.
Are batteries or a solar pool heater covered by the exclusion?
The exclusion is for the active solar energy system — panels, inverters, wiring and related equipment. Solar swimming-pool and hot-tub heaters are specifically excluded from it under §73(b)(2) and can be assessed. Battery storage treatment can depend on how the system is configured and the current rules, so confirm your specific setup with your county assessor.
Do I need to apply for the solar property tax exclusion?
For a homeowner adding solar to an existing roof, the exclusion is generally automatic — the assessor doesn’t add the system’s value when the permit and installation come through. The main exception involves new homes: when a builder installs the system, the exclusion passes to the initial purchaser only if they buy before the property becomes subject to assessment. When in doubt, ask your county assessor.
Related reading
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Get a free estimatePrepared by Cali Energy, July 2026. This article is for general educational purposes only and is not legal, tax, financial, engineering, or utility advice. Rates, incentives, codes, permit requirements, equipment specifications, prices, and program terms may change; figures and timelines are estimates, not guarantees. Confirm current requirements with the applicable utility, AHJ, program administrator, manufacturer, or a licensed professional. See our Content Disclaimer. Cali Energy · 19201 Parthenia St Unit E, Northridge, CA 91324 · CSLB #1032379 (B, C-10, C-39)