Sen. Blakespear Introduces Legislation to Extend Solar Tax Exemption

SACRAMENTO – Sen. Catherine Blakespear, D-Encinitas, introduced legislation on Friday to extend one of California’s most valuable incentives to acquire solar energy – an exclusion from property tax reassessment when solar panels or batteries are installed on properties.

SB 710 eliminates the 2027 sunset date for the program, helping to keep solar installation accessible to Californians, move the state toward alternative energy and maintain progress in meeting the state’s clean energy goals. If the exclusion is allowed to expire, it would trigger costly reassessments whenever a new system is installed or a property with an existing system is sold.

In the 25 years the exclusion has been in effect, solar panels have been added to more than 2 million roofs throughout California.

In most cases, when homeowners improve their properties through a remodel, their homes are reassessed and therefore property taxes increase to reflect the higher home value. For the past quarter century, the state of California has signaled through its tax policy that it wants to incentivize solar panel and battery installation by excluding solar panel and battery installation from triggering this property tax reassessment.

“We should continue our state’s commitment to solar energy by doing everything possible to incentivize homeowners and business owners to install solar panels and batteries. If property owners were to face higher taxes from installing solar panels, it would be a disincentive to do so. We need to keep our tax code aligned with our values of sustainability and affordability,” Sen. Blakespear said.

California has set goals to generate 60 percent of its electricity from renewable resources by 2030 and 100 percent by 2045. According to the most recent data, about 45 percent of the state’s electricity currently comes from renewable sources. At the end of 2023, solar provided about 28 percent of the state’s electricity generation. 

Installing solar panels can be expensive, running from about $10,000 to more than $20,000, depending on the size of the system. Tax incentives and rebates help lower the cost, but the high initial investment means it takes many years for consumers to realize enough savings from energy costs to cover the cost of installation. Excluding solar panels from increasing property taxes helps consumers more quickly cover the cost of solar installation. 

The legislation is sponsored by Environmental California and the California Solar and Storage Association (CALSSA).

“Installing solar panels and backup batteries are commonsense home improvements we should be encouraging,” said Environment California State Director Laura Deehan. “We thank Senator Blakespear for her leadership to protect consumers from the risk of unfair property tax hikes just for making good choices for our communities and the planet.”

"We should not be taxing the sun with any form of taxes," said CALSSA Policy Director Brad Heavner. “Customers seeking to invest in clean energy can thank Senator Blakespear for her leadership and commitment."

Sen. Blakespear represents Senate District 38. Her constituents live in northern San Diego County and southern Orange County. To learn more about the district and Sen. Blakespear, visit her Senate website.