30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·
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Solar Property Tax Exemptions by State — Are You Exempt?
A solar property tax exemption excludes the home value added by your solar system from your annual property tax assessment. A solar install can boost a home's appraised value by $15,000 to $25,000 — and most states with this exemption ensure that increase is invisible to your tax bill.
States With Property Tax Exemption
27 states currently offer property tax exemption. Click into any state for the specific terms.
When your county assesor reappraises your home, the value added by the solar PV system is excluded from the new assessed value. Your property tax bill remains based on the pre-solar value of the home, even though market value has increased.
How Property Tax Exemption Combines With Federal ITC
Property tax exemption is purely a recurring savings on your tax bill — it does not interact with the federal credit at all. The federal 30% credit reduces installed cost; the exemption avoids ongoing property tax inflation.
Frequently Asked Questions
How much does a property tax exemption save?
Depends on local mill rate. With a $20,000 home value increase from solar and a 1.5% local property tax rate, the annual exemption saves $300/year — about $7,500 over a 25-year system life.
Do I need to apply for the exemption?
In most states, yes. The application is filed with the local assessor's office and requires proof of installation (final invoice plus permission-to-operate from the utility). Some states apply the exemption automatically during the next assessment cycle.
Does the exemption transfer to a new owner?
Yes, in nearly every state. The exemption attaches to the property, not the owner, so future buyers continue receiving the benefit until the exemption sunsets (most are open-ended).