Solar panel property tax exemptions by state: the full 50-state guide

Last updated 2026-07-11

What is a solar property tax exemption and how does it work?

Add solar panels and your home's market value almost certainly climbs. A Lawrence Berkeley National Laboratory study found buyers paid a premium averaging about $4 per watt for rooftop solar, roughly $15,000 on a typical 3.6 kW system ^[1]. Without an exemption, your assessor can count that whole premium as added value and raise your bill.

A solar exemption stops that. It tells the assessor to ignore the value the installation adds. Your assessment stays as if the panels were never there, even though the house is worth more on the open market.

The mechanics differ by state. Some write the exemption into the constitution, which makes it airtight. Others pass a statute that local governments have to follow. A few make it a local option, meaning your county or city decides whether to adopt it, and if they haven't, you get nothing. A handful offer a temporary exemption for a set number of years instead of a permanent one.

The exemption usually covers the value the solar equipment adds, not structural work you did alongside it. Put on a new roof to mount the panels? The roof's added value is generally still assessable.

Which states have a full solar property tax exemption?

The table below covers all 50 states and the District of Columbia. "Full" means the entire added value of a residential solar system is excluded from assessment. "Partial" means a cap, a time limit, or a reduced percentage applies. "Local option" means the state authorizes exemptions but doesn't require them. "None" means no statutory exemption exists as of mid-2025.

State	Exemption type	Statute or basis	Notes
Alabama	None	,	No solar-specific exemption
Alaska	Local option	AS 29.45.050	Municipalities may exempt
Arizona	Full	A.R.S. § 42-11054	Active solar devices excluded [2]
Arkansas	None	,
California	Full	Cal. Rev. & Tax. Code § 73	New construction exclusion; covers solar added to existing home [3]
Colorado	Full	C.R.S. § 39-3-118.5	Residential and commercial
Connecticut	Full (local option)	C.G.S. § 12-81(56)	Municipalities must adopt; most have
Delaware	None	,
Florida	Full	Art. VII, § 3(e), Fla. Const.; F.S. § 196.182	Constitutional exemption; covers residential
Georgia	Full	O.C.G.A. § 48-5-48.1
Hawaii	Full (partial in some counties)	H.R.S. § 246-34
Idaho	None	,
Illinois	Full	35 ILCS 200/10-5
Indiana	Full	I.C. § 6-1.1-12-26
Iowa	Full	Iowa Code § 427B.26
Kansas	Full	K.S.A. § 79-201
Kentucky	None	,
Louisiana	Full	La. Const. Art. VII, § 21	Constitutional; homestead exemption interacts
Maine	Full	36 M.R.S. § 655(1)(Q)
Maryland	Local option	Md. Tax-Prop. § 9-203	Counties may grant; many do [4]
Massachusetts	Full	M.G.L. c. 59, § 5, cl. 45	20-year exemption
Michigan	Full	MCL 211.9i
Minnesota	Full	Minn. Stat. § 272.02 subd. 24
Mississippi	None	,
Missouri	None	,
Montana	Full	MCA § 15-6-225
Nebraska	Full	Neb. Rev. Stat. § 77-202.12
Nevada	Full	NRS § 361.079
New Hampshire	Full	RSA 72:61 to 72:72
New Jersey	Full	N.J.S.A. 54:4-3.113
New Mexico	Full	NMSA § 7-36-27.1
New York	Full (local option)	RPTL § 487	15-year exemption; localities may opt out [5]
North Carolina	Full	N.C.G.S. § 105-275(45)
North Dakota	Full	N.D.C.C. § 57-02-08.9
Ohio	Full	ORC § 5709.53	100% exemption, no time limit
Oklahoma	None	,
Oregon	Full	ORS § 307.175
Pennsylvania	Local option	72 P.S. § 4726	Clean energy assessment program
Rhode Island	Full	R.I. Gen. Laws § 44-3-47
South Carolina	Full	S.C. Code § 12-37-220(B)(42)
South Dakota	Full	SDCL § 10-6-35.14
Tennessee	None	,
Texas	Full	Tex. Tax Code § 11.27	Covers solar and wind-powered devices [6]
Utah	Full	Utah Code § 59-2-1115
Vermont	Full	32 V.S.A. § 3845
Virginia	Local option	Va. Code § 58.1-3661	Locality must adopt; many Northern Virginia counties have
Washington	Full	RCW § 84.36.635
West Virginia	None	,
Wisconsin	Full	Wis. Stat. § 70.111(18)
Wyoming	Full	Wyo. Stat. § 39-11-105(a)(xiii)
D.C.	Full	D.C. Code § 47-1002

About 36 states plus D.C. offer at least a full or local-option exemption ^[2][3][5][6]. Nine states have nothing as of mid-2025: Alabama, Arkansas, Delaware, Idaho, Kentucky, Mississippi, Missouri, Oklahoma, and Tennessee. If you live in one of those, skip to the section on appealing without an exemption.

Does the solar exemption apply to commercial and rental property too?

Most solar exemption statutes were written with homeowners in mind, but plenty extend to commercial and industrial property. Colorado's exemption under C.R.S. § 39-3-118.5 covers both residential and commercial installations. Texas Tax Code § 11.27 applies to solar and wind-powered devices on any property, not homes alone ^[6].

Rental property sits in a gray area. If you're the owner-occupant and the home qualifies for a homestead exemption, the solar exemption usually stacks on top of it cleanly. On a non-owner-occupied rental, some states limit the solar exemption to owner-occupied homes. New Jersey's N.J.S.A. 54:4-3.113 covers renewable energy systems on commercial, industrial, and residential properties, one of the broader statutes on the books.

Own a small commercial building with solar? Pull the text of your state statute and look for the definition of "qualified property" or "eligible property." That's where the restriction hides if there is one. In a local-option state like Virginia or Maryland, call the county assessor directly. Montgomery County has adopted the solar exemption under Maryland law, but not every Maryland county moved at the same speed ^[4].

For commercial property in a state with no solar exemption, your only relief is a standard assessment appeal arguing the income approach doesn't support the assessed value. Commercial appeals are more document-heavy than residential ones. The framework is the same.

How do you actually claim the exemption, and is there a deadline?

The process varies by state, but almost everywhere you have to file an application. The exemption is not automatic. That single fact costs people money every year.

In most states you file with your county assessor. You'll typically need:

• A completed exemption application form (your assessor's website has it)
• Proof the installation exists: a building permit, a utility interconnection agreement, or an inspection certificate
• The address and parcel number of the property
• Manufacturer documentation for the system, sometimes including wattage

Deadlines are where people lose. New York's RPTL § 487 exemption requires the application to be filed by March 1 of the year you want it to start ^[5]. California's new construction exclusion under Revenue and Taxation Code § 73 works differently: the assessor is supposed to apply it automatically once permit data arrives from the city or county, but you can file BOE Form AEA to make sure it lands ^[3].

Texas applicants file with the county appraisal district by April 30 for the current year ^[6]. Miss the deadline and some states let you file late for a reduced benefit or for the following year.

If your state runs a local-option exemption (Connecticut, Maryland, New York outside its opt-out provisions, Virginia), confirm with your specific municipality or county before you trust the table above. A county that hasn't adopted the ordinance means no exemption, even with the state law on the books. For Cook County and LA County homeowners, the state exemption applies at the assessor level, but verifying that your assessment actually reflects it still pays off.

What if your assessor already added solar value to your assessment?

This happens more than it should. An assessor who doesn't track your parcel's exemption status, or who processes a solar permit as a standard improvement, can add the solar premium to your assessed value even in a state that bans it.

Catch it by pulling your property record card from the assessor's website. Look for a line item tied to solar equipment or a sharp upward adjustment in the year you installed. If the added value is there and your state has an exemption, you have a documented basis to appeal.

Most states start you with an informal review request to the assessor. Bring your statute citation, your exemption application if you filed one, and documentation of the installation date. Assessors often correct it administratively with no hearing.

If the informal review fails, you file a formal appeal with the local Board of Review, Board of Assessment Appeals, or State Tax Court depending on your state. Your grounds: the assessment violates the state exemption statute. That's a legal argument, not a valuation fight, which makes it easier to win without an appraiser.

Texas homeowners go to the Appraisal Review Board. In California, Santa Clara County homeowners file an Assessment Appeal Application with the county Assessment Appeals Board once the assessor's informal review comes back unsatisfactory ^[3]. Want to build the appeal file yourself without handing a contingency firm 40% of your refund? TaxFightBack's appeal kit walks through the evidence packet step by step.

Watch the clock. Your state's appeal deadline often falls 30 to 90 days after the assessment notice is mailed, and missing it kills your right to challenge that year.

Are leased solar panels treated the same as owned panels for tax purposes?

This is where it gets complicated. Own your panels outright (or finance them with a loan) and the equipment is attached to your property, so the value bump is attributed to your parcel. The exemption applies to that added value.

Lease panels from a third party and the panels are usually personal property of the leasing company, not real property of the homeowner. Many exemption statutes are built around real property, so the equipment has to be part of the realty to qualify. Panels classified as personal property owned by the leasing company can sit on your roof and still miss the real property exemption.

The practical outcome varies. In some states the assessor doesn't add value for leased panels anyway, because the cost approach won't attribute value to equipment the homeowner doesn't own. In others, assessors argue that installed panels add market value regardless of who owns them, and then the exemption fight gets messy.

California's Revenue and Taxation Code § 73 attaches to the "new construction" the installation triggers, not to the hardware itself, which tends to cover leased systems because the exclusion follows the construction event rather than ownership ^[3]. Texas Tax Code § 11.27 requires the property owner to own the solar device, so leased systems may not qualify ^[6].

Read your statute for phrases like "owned by the property owner" or "installed on the premises." Those words decide whether a lease leaves you exposed.

Do solar exemptions affect your home's sale price or a buyer's property taxes?

The exemption usually doesn't follow the home when it sells. At sale, the assessor reassesses for the new owner, and whether that buyer gets the exemption depends on whether they file a fresh application.

New York's RPTL § 487 shows how this works. The 15-year exemption period runs with the original application, not the property. Held it 5 years and sold? The new owner can potentially continue it for the remaining 10 years, but only if they apply ^[5]. Skip the application and the exemption lapses.

That matters at closing. Buyers who understand the exemption and know how to claim it may treat it as a real value point. Buyers who don't may leave money on the table without realizing it. Disclose the exemption status and walk the buyer through the application. It's an easy thing to hand over as a seller.

In states like California where the exemption ties to the construction event, the exclusion is already baked into the base year value and effectively rides with the property, though the change-of-ownership reassessment rules interact with this in ways the California State Board of Equalization's guidance addresses ^[3].

What about battery storage systems, EV chargers, and other clean energy upgrades?

The solar exemption in most states covers photovoltaic panels and solar thermal systems. Battery storage is treated all over the map.

Some states now extend exemptions to storage explicitly. California excluded storage systems that are "co-located" with solar under a BOE guidance update. New Jersey extended its exemption to energy storage systems when it amended its clean energy statutes. But many statutes were written before batteries went mainstream, so they say "solar" and stop there.

EV chargers sit almost universally outside solar exemption statutes. Assessors treat them as standard home improvements, and they're assessable in most places.

Installed a battery alongside your solar? Check your state's current statute text and any recent amendments. Several states updated their laws between 2021 and 2024 to address storage, and the table above reflects the solar-specific exemption only. A storage exemption may or may not stack on it.

Geothermal heating and cooling has its own exemptions in some states that overlap in spirit with solar. Iowa covers geothermal under its wind energy conversion property exemption framework. Different statute, different application. Treat it separately.

What's the dollar value of a solar exemption, and is it worth claiming?

The Lawrence Berkeley National Laboratory study found average solar premiums of roughly $4 per watt at the time of sale ^[1]. On a 6 kW system, that's $24,000 of added market value. At a 1.1% effective property tax rate (the U.S. average per the Lincoln Institute of Land Policy), that's about $264 a year the exemption shields from assessment ^[9].

Over a 20-year system life, that's roughly $5,280 in cumulative tax savings, before you count assessment increases that would compound it. High-tax states change the math. New Jersey's effective rate runs around 2.1%, so the same $24,000 exemption is worth about $504 a year, north of $10,000 over the system's life.

The application takes under an hour to complete. That's the best hourly rate in property tax planning, full stop.

The one place people stall is a local-option state where the municipality hasn't adopted the exemption. Then there's nothing to claim, and pushing the local government to adopt the ordinance is a slower game. In states with no exemption at all, your options are legislative advocacy or a moving truck.

For Gwinnett County homeowners in Georgia, the full state exemption under O.C.G.A. § 48-5-48.1 applies and the county assessor handles applications. Hennepin County homeowners in Minnesota claim it under Minn. Stat. § 272.02 subd. 24 through the county assessor.

Which states have the weakest or most complicated solar exemptions?

Not every exemption is equal. These are the states where the exemption is real but needs extra attention:

New York lets localities opt out of RPTL § 487, and a number of municipalities have done exactly that. Before you count on it in New York, check whether your municipality opted out. The New York State Department of Taxation and Finance keeps guidance on this ^[5].

Connecticut's exemption is a local option, so individual municipalities must adopt it. Most larger cities have. Rural towns may never have passed the enabling ordinance. Call your town assessor before filing.

Maryland makes each county adopt its own ordinance. Most do, and Montgomery County is a well-documented example, but the state itself doesn't mandate adoption ^[4].

Virginia works the same way. State law authorizes the exemption under Va. Code § 58.1-3661, and each locality decides. Northern Virginia localities like Fairfax and Arlington have adopted it. Rural counties are more variable.

Pennsylvania's program under 72 P.S. § 4726 is an assessment agreement, not a plain exemption. Owners enter a Clean Energy Program agreement with the taxing bodies, which locks in the assessment (excluding the solar improvement) for up to 10 years. More paperwork than a standard filing.

Massachusetts gives a 20-year exemption under M.G.L. c. 59, § 5, which is strong, but the 20-year clock starts at installation. Buy a home with older panels already up there and you'll want to find out where the clock stands before you assume you have two decades of protection.

How do federal solar incentives interact with state property tax exemptions?

These are separate programs. The federal residential clean energy credit (formerly the Investment Tax Credit), currently 30% for residential systems installed through 2032 under the Inflation Reduction Act, reduces your federal income tax liability ^[7]. It has nothing to do with your property tax assessment.

Some people worry that claiming the federal credit lowers the solar system's value for assessment purposes, since the net cost drops after the credit. In practice, assessors don't shave the assessed premium for the federal credit. They use market data (what buyers pay for homes with solar) or cost data (what similar systems cost to install), neither of which adjusts for one buyer's tax situation.

State income tax credits for solar are separate too. Some states with no property tax exemption (Missouri, for one) still offer a state income tax credit for solar. That credit doesn't replace the property tax exemption, but claim it on its own.

Capture all three buckets if your state offers them: the federal income tax credit, any state income tax credit, and the property tax exemption. They aren't mutually exclusive.

Frequently asked questions

Do I have to apply for the solar property tax exemption or is it automatic?

In most states you file an application with your county assessor. California is a partial exception: the assessor is supposed to apply the new construction exclusion when permit data comes through, but you can file BOE Form AEA to confirm it. Texas requires filing with the appraisal district by April 30. Don't assume it was applied. Pull your property record card and check the solar line.

Can I get the exemption if I already missed the deadline for past years?

Some states allow late applications, but most limit recovery to future years. Texas allows a late filing for a reduced benefit in some situations. New York allows applications up to three years after the installation date in some circumstances. Check your state's statute or call the assessor. If the exemption was never applied and your assessment improperly included solar value, you may also have grounds to appeal past assessments within the normal window.

I live in a local-option state. How do I find out if my county adopted the solar exemption?

Call your county or municipality assessor and ask whether the solar exemption ordinance has been adopted. You can also check the county website for the application form: if it exists, the exemption is active. For Virginia and Maryland, county government sites often post the list of adopted exemptions. Don't rely on the state-level statute alone in a local-option state.

Does the solar exemption apply to a manufactured home or mobile home?

It depends on how the home is titled and assessed. On a permanent foundation and assessed as real property, the solar exemption typically applies. Titled as personal property (as manufactured homes often are in states like Texas), the real property solar exemption may not reach it. Check with your county assessor about how your home is classified before you apply.

Does installing solar panels affect my homestead exemption?

In most states the solar exemption and homestead exemption are separate programs that reduce your assessed value independently. Adding solar doesn't disqualify you from homestead. Louisiana is worth noting: the constitutional homestead exemption shields the first $75,000 of assessed value, and the solar exemption adds on top. Having both typically drops your taxable value further, not less.

What if my state has no solar exemption? Can I still argue against a higher assessment?

Yes, through a standard assessment appeal instead of an exemption claim. Argue that comparable homes without solar didn't sell at the premium the assessor attributed, or that the cost approach overstates value because solar isn't reflected dollar for dollar in your market. This needs comparable sales data and is harder to win than a clean exemption filing, but it's the available path in Missouri, Alabama, and Tennessee.

Are community solar subscriptions covered by the property tax exemption?

No. Community solar is off-site generation capacity you subscribe to: you get a credit on your utility bill, but no equipment sits on your property. With nothing added to the physical property, there's no assessment increase in the first place, so the exemption doesn't apply. The exemption only matters when equipment on your property raises your assessed value.

How long does the solar property tax exemption last?

Most state exemptions are permanent, so the solar value stays excluded as long as you own the home and the equipment works. Exceptions include Massachusetts (20 years), New York (15 years under RPTL § 487), and Pennsylvania (up to 10 years under the Clean Energy Program). If your state has a time-limited exemption, track when your window closes so a sudden assessment jump doesn't surprise you.

My assessor increased my assessment after solar installation in a state with an exemption. What should I do first?

Start with an informal written request to the assessor. Cite the specific state statute (use the table above), attach your exemption application or permit documentation, and ask them to correct the assessment. Most assessors fix clear statutory errors without a formal appeal. If the informal request fails, file a formal appeal with your local Board of Review or Appeals before the deadline printed on your assessment notice.

Is there a difference between a solar exclusion and a solar exemption?

Yes, technically. An exemption removes a property or portion of value from taxation after the fact. An exclusion means that value is never added to the assessment in the first place. California uses the exclusion framework: the added value from solar is excluded at the point of assessment, so it never shows on your record card. The tax result is the same, but the terminology matters when you read the statute.

Do solar property tax exemptions cover ground-mounted systems, or only rooftop installations?

Most statutes use broad language like 'solar energy system' or 'solar electric generating device' without limiting coverage to rooftops. Ground-mounted systems fixed to the property and part of the real estate parcel are generally covered. Portable or trailer-mounted systems aren't. Check your state's definition of the covered system: if it says 'attached to or a component of a building,' a ground-mount in a separate structure may need specific attention.

Do HOA rules affect whether I can claim the solar property tax exemption?

No. HOA restrictions affect whether you can install solar at all (and most states now bar HOAs from banning solar outright), but they have no bearing on your right to claim the property tax exemption once the system is up. The exemption is between you and the taxing authority, not the HOA. If your HOA delayed your installation and you missed a filing deadline, file as soon as the system is operational.

What documentation should I save after installing solar to support an exemption claim?

Save the building permit, the utility interconnection or net metering agreement, the installer's invoice showing system size in kilowatts and total installed cost, and any city or county inspection certificate. Some states also ask for manufacturer documentation. Store these as PDFs. You'll need them for the initial application and, if your assessor misses the exemption, for an appeal. Losing documentation after a few years is common and avoidable.

Sources

1. Lawrence Berkeley National Laboratory, Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes: Buyers paid a premium averaging about $4 per watt for rooftop solar, or roughly $15,000 on a typical 3.6 kW system
2. Arizona State Legislature, A.R.S. § 42-11054: Arizona excludes the value of active solar devices from property assessment
3. California State Board of Equalization, Revenue and Taxation Code § 73 guidance: California excludes solar energy systems from new construction assessment under Cal. Rev. & Tax. Code § 73
4. Maryland Department of Assessments and Taxation, Property Tax Exemptions: Maryland allows counties to grant property tax exemptions for solar and other energy systems under Md. Tax-Prop. § 9-203
5. New York State Department of Taxation and Finance, Real Property Tax Law § 487: New York's 15-year solar property tax exemption requires application by March 1; localities may opt out
6. Texas Comptroller of Public Accounts, Texas Tax Code § 11.27: Texas exempts solar and wind-powered energy devices from property taxation; owners must apply by April 30
7. U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Residential Clean Energy Credit: The federal residential clean energy credit is 30% for solar systems installed through 2032 under the Inflation Reduction Act
8. Database of State Incentives for Renewables and Efficiency (DSIRE), NC State University: Comprehensive database of state-by-state solar property tax exemptions and related renewable energy policies
9. Lincoln Institute of Land Policy, Significant Features of the Property Tax: U.S. average effective property tax rate used for dollar-value exemption calculations
10. Florida Legislature, Florida Statutes § 196.182 and Article VII, § 3(e), Florida Constitution: Florida provides a constitutional property tax exemption for residential renewable energy devices
11. New Jersey Legislature, N.J.S.A. 54:4-3.113, Clean Energy Property Tax Exemption: New Jersey exempts renewable energy systems on commercial, industrial, and residential properties from property taxation
12. Illinois General Assembly, 35 ILCS 200/10-5, Property Tax Code: Illinois exempts solar energy systems from property assessment under 35 ILCS 200/10-5