Do Solar Panels Raise Your Property Taxes? The Honest Answer for Homeowners

Here's the short answer: for most homeowners, solar panels will not raise your property taxes. More than 36 states have passed laws that specifically exempt the added value of solar from property tax assessments. If you live in one of them, your assessor legally cannot factor your solar system into your tax bill.

But the keyword is "most." A handful of states offer no statewide exemption, and in those places, a solar installation that adds $15,000–$25,000 to your home's appraised value could inch your annual property tax bill upward.

This guide tells you exactly where you stand, how to check your specific county, and what to do if you live somewhere without protection.

Last updated: 2026-06-25

Why Solar Could Raise Property Taxes (Without an Exemption)

Property taxes are calculated as a percentage of your home's assessed value. When your home becomes worth more, your tax bill typically goes up.

Solar panels genuinely do increase home value. A widely cited Lawrence Berkeley National Laboratory study found that homeowners recoup a significant premium at resale — often $3–$4 per watt of installed capacity. On a 10 kW system, that's a $30,000–$40,000 bump in appraised value. At a typical property tax rate of 1–1.5%, that translates to $300–$600 per year in additional property taxes.

That's real money. It's also exactly why so many states moved to exempt solar from the calculation.

The mechanism works like this: your county assessor visits (or estimates) your home's value, notes the solar installation, and has to decide whether to include it. In an exemption state, they're legally required to ignore it. In a non-exemption state, they may add it in — though in practice, many assessors don't reassess until a sale triggers it.

The Solar Property Tax Exemption, Explained

A solar property tax exemption is a state or local law that says: your home's taxable value does not increase just because you added solar panels.

There are two common structures:

Full exemption: The entire added value from solar is excluded from your assessed value. Your tax bill is exactly the same the year after installation as it was before. This is the most common structure and covers most of the U.S.

Partial or time-limited exemption: Some states cap the exemption at a dollar amount, phase it out over 10–20 years, or make it an opt-in program at the county level. These are less protective but still meaningful.

Neither type affects the value you'd receive at resale. Buyers still pay a premium for homes with solar — the exemption just prevents the government from taxing that premium while you own the home.

States With Full Solar Property Tax Exemptions

The following states have statewide, full exemptions for residential solar energy systems. If you live here, your property taxes will not increase because you installed solar:

Arizona — Solar energy devices are exempt under state statute. The exemption applies to the full value of installed solar equipment.

Colorado — Residential renewable energy systems are excluded from property valuation for tax purposes.

Florida — Voters passed a constitutional amendment in 2008 making solar installations fully exempt. It was renewed in 2016. Florida homeowners get full protection.

Maryland — Solar energy property is exempt from state property tax. Most counties have adopted similar local exemptions.

Massachusetts — A 20-year statutory exemption applies to solar or wind energy systems. You do need to apply for it through your local assessor's office.

New Jersey — Renewable energy systems are fully exempt from property tax assessment under state law.

New York — A 15-year exemption is available for solar, wind, and certain other systems under the Real Property Tax Law. Local municipalities adopt it, and the vast majority have. Verify your specific municipality.

Texas — Solar energy devices are 100% exempt from property taxation under the Texas Tax Code. This applies to all residential installations statewide.

Virginia — Solar energy equipment is exempt from local property taxation. The exemption covers the value attributable to the solar equipment itself.

Washington State — Solar systems are exempt from property tax assessment.

This is not an exhaustive list. Nevada, North Carolina, Oregon, and many other states offer similar protections. The map is heavily in homeowners' favor.

States With Partial, Local, or No Statewide Exemption

Some states leave the decision to counties, cap the exemption, or haven't passed one at all. This is where you need to do a little extra homework.

California — New solar systems are generally excluded from triggering a property tax reassessment under a construction exclusion, but the rules differ from a true exemption. Your existing assessed value stays the same; the solar itself typically doesn't get added. Most California homeowners are protected in practice, but the mechanism is different from other states.

Georgia — No statewide solar property tax exemption as of 2026. Some counties offer local exemptions — check your county's tax assessor website or call directly.

Illinois, Indiana, Missouri — These states have energy exemptions that may or may not cover all residential solar configurations. Verify locally.

States with no exemption: A small number of states — including some in the Southeast and Midwest — have no statewide solar property tax protection. If you're in one, your assessor could factor solar into your home's value at the next reassessment.

Even in non-exemption states, the actual impact varies. Many county assessors don't proactively reassess homes between sale transactions, so a homeowner who installs solar today might not see any change until they sell. But you shouldn't count on that.

How to Check Your Specific Situation in 10 Minutes

Don't rely solely on what you read here — state laws change, local rules vary, and your county's implementation matters. Here's how to get a definitive answer:

Step 1: Search "[your state] solar property tax exemption" on your state government's official website (.gov domain). Look for language about "renewable energy," "solar energy device," or "clean energy" in the property tax section.

Step 2: Call or email your county tax assessor's office. Ask: "Does the county exempt the added value of residential solar installations from property tax assessments?" A two-minute call gets you a direct answer.

Step 3: Ask your solar installer. Reputable installers quote in this market regularly and know the local rules cold. If they can't tell you, that's a red flag about their experience in your area.

When you're collecting installer quotes, EnergySage makes it easy to get multiple vetted proposals side by side — and because installers compete for your business, you'll typically receive detailed information about local incentives including property tax treatment. Their marketplace has helped over 350,000 homeowners navigate exactly these kinds of questions.

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