SolarCity, SunRun to sue over Arizona property tax battle

Facebook
Twitter
LinkedIn
Reddit
Email

A legal fight against property taxes levied onto leased PV systems in Arizona has begun in earnest, with residential leasing companies SolarCity and SunRun filing a lawsuit on Monday.

The two companies are seeking legal redress in the Superior Court following the the Arizona Department of Revenue (DOR) decision earlier this year to end an exemption on property taxes applicable to third-party owned solar power systems on residential rooftops.

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

Both companies confirmed separately to PV Tech that the complaint had been filed and forwarded a copy of the official documents (see below). Bryan Miller, vice president of public policy at SunRun, told PV Tech that the company had yet to hear back from the department of revenue but also that SunRun had attempted to open a dialogue with the DOR prior to lodging the legal complaint. 

“The Department of Revenue has not yet responded. There were attempts made at dialogue, however the DOR refused to revisit their position,” he said

Miller was adamant that the legal basis for his company’s complaint is solid.

“The Department of Revenue reinterpreted existing law to impose this tax. The law is clear – solar systems intended for on-site consumption add no value for property tax purposes.”

Miller also points out that as with any tax, the end user – in this case the householder with the leased system on their roof, rather than the leasing company which owns the system – will end up paying. Nonetheless they are keen to avoid that liability.

“The first taxes would be due October 2015. Between now and then, we'll take every opportunity possible to stop this tax,” Miller said.

PV Tech reported the story previously and spoke with Matt Feinstein, analyst at Colorado-based Lux Research, in May. He said the proposed changes “would nullify a significant part of the savings that distributed solar customers gain, so it would be very damaging [to the industry]”. Feinstein also argued it was likely the new development was another tactic to resist the increased deployment of solar.

SolarCity – Verified Complaint for Declaratory Judgment (4)

Read Next

September 17, 2025
US renewables developer Longroad Energy has reached financial close for its 400MW 1000 Mile solar project in the US state of Texas.
September 17, 2025
Spanish renewables developer and operator Acciona Energía has commissioned its 412MWp Juna solar PV plant in Kawani village in the western state of Rajasthan. 
September 17, 2025
Spanish IPP Velto Renewables has acquired a portfolio of 53 operational solar assets in Spain with a combined capacity of 260MW.
September 17, 2025
Struggling Swiss solar manufacturer Meyer Burger has formally entered into a debt moratorium, with the possibility of rescuing the entire group now looking unlikely.
September 17, 2025
Nexamp has secured US$350 million through a long-term financing facility to expand its 6GW utility-scale solar and battery storage pipeline in the US. 
September 17, 2025
Chinese module producer DAS Solar is planning a 5GW manufacturing facility focused on producing high-efficiency back contact cells.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA