All of California · Tax exemption
Active solar energy system new construction exclusion (property tax, Revenue and Taxation Code section 73)
Run by County assessors (guidance from the California State Board of Equalization)
California doesn't count adding an active solar energy system, such as rooftop solar, as new construction for property tax, so installing one doesn't raise your assessed value. Under current law the exclusion applies to systems that qualify before January 1, 2027; systems already excluded stay excluded until the property changes ownership.
Amounts
How much you get
The value the solar system adds isn't added to the property's assessed value, so property tax doesn't go up because of it. The saving depends on the system's value and the local tax rate.
Eligibility
Do I qualify?
You need to meet all 3 of these.
Your home is in California.
An active solar energy system (for example solar panels or solar water heating) added to real property.
The system must qualify before January 1, 2027. Once excluded, it stays excluded until the property changes ownership.
Equipment
What equipment counts
Applying
How to apply
Applies to active solar energy systems that qualify before January 1, 2027, unless the Legislature extends it. A 2026 extension bill (AB 2389) was held in committee.
- Install the system before January 1, 2027.
The exclusion applies to systems in process or completed before that date.
- Check with your county assessor.
The exclusion is applied by the county assessor when the new construction is assessed; contact your assessor if a solar addition was assessed.
Forms and instructionsBOE Letter to Assessors 2024/031: Active Solar Energy System New Construction Exclusion, Clarification of Sunset Date Extension · SB 710 (2025): Property taxation: active solar energy systems · AB 2389 (2026): active solar energy systems: customer sited: extension · California Revenue and Taxation Code section 73 (leginfo)
Stacking
Use it with
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Active solar energy system new construction exclusion (property tax, Revenue and Taxation Code section 73) pay?
The value the solar system adds isn't added to the property's assessed value, so property tax doesn't go up because of it. The saving depends on the system's value and the local tax rate.
What’s the deadline?
Apply by December 31, 2026.
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
- BOE Letter to Assessors 2024/031: Active Solar Energy System New Construction Exclusion, Clarification of Sunset Date Extension
- SB 710 (2025): Property taxation: active solar energy systems
- AB 2389 (2026): active solar energy systems: customer sited: extension
- California Revenue and Taxation Code section 73 (leginfo)
When one of these pages changes, we re-check this page against it.
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