California property tax exemptions for PV systems extended to 2025

Facebook
Twitter
LinkedIn
Reddit
Email

A property tax exemption for solar power systems in California has been extended to 2025, following the passing of a bill as part of the annual state budget.

Senate Bill 871 (SB871) was approved during the signing of the budget by governor Jerry Brown, which took place last week. The wording of SB871 extends the period during which property taxes will not be applied to “active solar energy systems”, which includes PV and solar water heaters.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

This exclusion period was originally set to run until the end of 2016 – it will now last until 1 January 2025. The issue of whether or not property taxes could be applied on solar power systems, according to the perceived value added to the property they are installed at, has recently also surfaced in the US state of Arizona. At the beginning of May, it was revealed that a reinterpretation of Arizona’s property laws could mean that systems leased from a third-party owner would be eligible for property taxes.

Matt Feinstein of analysis firm Lux Research told PV Tech at the time the Arizona reports appeared that the solar industry could be vulnerable to such alterations or reinterpretations to property tax law, as they might be easier for lawmakers to enact than fresh laws that singled out solar power systems for levying taxes on.

Feinstein said it was likely the changes proposed in Arizona were another symptom of the “state by state” fight between the solar industry and the incumbent monopoly over the electricity market held by utilities in the US.

Reacting to the news from California, the Solar Energy Industries Association (SEIA) head Rhone Resch commended Governor Brown’s actions. He praised the governor “and his lawmakers” for their foresight and for their “commitment to a clean environment”.

“The extension of the exclusion does not take funds away from any jurisdictions where taxes are currently being collected, nor does it have an impact on the General Fund. But the exclusion will reduce wholesale solar electricity costs for utility customers, and it reduces barriers to accessing solar for customer-sited projects. Simply put, many homeowners would not choose to install solar if faced with a property tax reassessment,” Resch said.

Governor Brown is widely acknowleged to have made numerous efforts to promote solar power in his years in US politics. Another recent piece of legislation, the proposed Assembly Bill 2188 (AB2188), would cut so-called 'soft costs' for solar by streamlining the permitting process required to gain approval for a residential solar power system in California. Walker Wright, director of public policy at SunRun said earlier this month that AB2188 could help end the “bureaucratic nightmare” that the approval process could often become.

Read Next

Premium
June 12, 2026
China, the world’s largest PV market, is poised to lead sustainable solar module recycling and circular manufacturing, writes Huan Li.
June 12, 2026
Silicon valley tech giant Meta has signed another power purchase agreement (PPA) with RWE for a solar project in Texas.
Premium
June 12, 2026
PV Talk: IEEFA’s Gaurav Upadhyay says India’s rooftop solar surged but conversion gaps and financing barriers persist despite strong momentum.
June 12, 2026
US independent power producer (IPP) MN8 Energy has reached commercial operations at two utility-scale solar PV plants totalling 260MW.
June 12, 2026
Fraunhofer ISE has increased the performance of its III-V germanium solar module from 34.2% to 34.4% using shingle-matrix technology.
June 12, 2026
Lu Chuan, chairman of CHINT and its subsidiary Astronergy, outlines his prudent approach to navigating the difficulties facing China's PV manufacturers.

Upcoming Events

Solar Media Events
June 16, 2026
Napa, USA
Media Partners, Solar Media Events
June 30, 2026
Sacramento, California
Media Partners, Solar Media Events
August 25, 2026
São Paulo, Brazil
Media Partners, Solar Media Events
September 1, 2026
Mexico City, Mexico
Media Partners, Solar Media Events
September 9, 2026