Sen. Blakespear’s Legislation to Protect Solar Tax Incentive Signed by Governor
SB 710 ensures active solar energy systems built before Jan. 1, 2027, remain exempt from property tax until ownership changes
SACRAMENTO – Legislation by Sen. Catherine Blakespear, D-Encinitas, to protect a vital tax break for people who install solar panels and battery storage before the end of 2026 was signed into law on Friday by Gov. Gavin Newsom.
A tax incentive designed to encourage homeowners and businesses to purchase and install solar panels and battery storage systems is set to expire in 2027. SB 710 ensures that those who install solar before the tax break expires continue to benefit from it until they sell their properties.
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 incentivized solar panel and battery installation by excluding it from triggering this reassessment. That has helped many people afford the cost of installing such systems.
“Californians who buy and install solar panels because of a current property tax exemption should continue to receive it,” Sen. Blakespear said. “SB 710 prevents the rug from being pulled out from under Californians who are counting on this tax break for their solar projects to pencil out.”
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 electric currently comes from renewable sources.
At the end of 2023, solar provided about 28 percent of the state’s electricity generation. In the 25 years the exclusion has been in effect, solar panels have been added to more than 2 million roofs throughout California.
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.
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.
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