Property Tax Exemption for Solar Systems

Section 73 of the California Revenue and Taxation Code allows a property tax exemption for certain types of solar energy systems installed on or before December 31, 2009. (The original expiration year of 2005 was extended by AB 1099 [2005].) Qualifying solar energy systems are defined as those that "are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy." These include active solar energy systems, solar process heating systems, photovoltaic (PV) systems and solar thermal electric systems. Solar pool heating systems and solar hot-tub-heating systems are not eligible.  
 
Pipes and ducts that are used to carry both solar energy and energy derived from other sources qualify for the exemption only to the extent of 75% of their full cash value. Likewise, dual-use equipment for solar-electric systems qualifies for the exemption only to the extent of 75% of its value.  
 
System owners should contact their County Assessor's office for further information. Click here for a listing of County Assessor offices in California.