California Solar Energy System Property Tax Exclusion

About This Program

California law permanently excludes the value of qualifying solar energy systems from property tax assessment, ensuring that installing solar panels does not increase a homeowner's property tax bill. This exclusion applies to both active and passive solar systems installed on residential properties. While not a cash grant, it eliminates the tax penalty for adding a major home improvement.

Estimated annual property tax avoided on a 7kW residential solar system

Key Details

• No property tax increase for installing solar panels
• Applies to all qualifying residential solar systems
• Permanent exclusion — no income limit
• File with Santa Clara County Assessor after installation
• Stacks with NEM billing credits and federal tax credits

How to Apply

Deadline: Apply after solar installation — no annual deadline