NEVADA COUNTY

Nevada County Assessor Rolf Kleinhans advises property owners considering solar panel installation to plan ahead, as California’s property tax exclusion for active solar energy systems is scheduled to expire on Jan. 1, 2027, unless the state extends it.

The state’s Active Solar Energy System Exclusion allowed many homeowners to add solar energy systems without increasing their property tax assessment. After the sunset date, new solar installations may be treated as taxable new construction. Homeowners with existing solar systems will continue to receive the exclusion, even when the law sunsets.

The property tax incentive for installing an active solar energy system is provided as a new construction exclusion. This means that installing a qualifying solar energy system does not increase or decrease the assessed value of an existing property for tax purposes.

For additional information about the Active Solar Energy System Exclusion, please visit the California State Board of Equalization’s Active Solar Energy System Exclusion.

~ Nevada County Assessor’s Office press release