Installing solar panels is often seen as an investment in your home, but many homeowners pause when they wonder: Will adding solar increase my property taxes?
The short answer for most homeowners is no — and in many cases, solar is specifically protected from triggering higher property taxes. Here’s how it works and what you should know before moving forward.
Why Solar Could Increase Property Value (But Usually Not Taxes)
In many housing markets, homes with solar systems sell for more than comparable homes without solar. Buyers value lower energy bills, predictable utility costs, and resilience against rising electricity rates.
Normally, when a home’s value increases due to an improvement (like a remodel or an addition), property taxes may rise accordingly. Solar is different.
Solar Property Tax Exemptions (The Key Detail)
Most U.S. states offer property tax exemptions for residential solar systems. These exemptions prevent solar installations from being counted as a taxable home improvement.
That means:
- Your home value may increase
- But the added value from solar is excluded from property tax calculations
This policy exists to encourage clean energy adoption and reduce financial barriers for homeowners.
How Common Are Solar Property Tax Exemptions?
Very common. A large majority of states offer some form of property tax exemption for solar energy systems, including many of the largest solar markets in the country.
However:
- Exemptions are state-specific
- Some require no action from the homeowner
- Others may require a simple filing or declaration
A local installer or county assessor can confirm the exact rules where you live.
When Might Property Taxes Increase?
While rare, there are a few edge cases to be aware of:
- States without a solar exemption
- Incorrect property assessments where solar is mistakenly included
- Major home upgrades bundled with solar, such as additions or structural changes
If an assessor mistakenly includes solar in a valuation, homeowners can typically correct it with documentation.
What About Solar Leases or PPAs?
If your system is leased or owned by a third party, the equipment usually does not count as part of your property value at all.
In these cases:
- The solar company owns the system
- The system generally does not affect property taxes
- You still benefit from lower electricity costs
The Bottom Line
For most homeowners:
- Solar does not increase property taxes
- Solar may increase home value
- Many states legally protect homeowners from tax increases related to solar
If anything, solar often delivers the rare combination of lower monthly costs, long-term savings, and protected home equity.
Helpful Next Steps
If you want to go deeper, these articles can help:
- Solar 101: How Home Solar Works and Whether It’s Right for You
- How Much Does Solar Cost in 2026?
- Solar Loans vs Leases vs PPAs: What $0-Down Solar Really Means
You can also speak with a local installer or your county assessor to confirm how solar is treated in your area.