California’s
Property Tax Exclusion
Expiration
Commercial Solar & Property Tax
Property Tax Exclusion Sunset For Commercial Solar
California’s property tax exclusion for commercial solar energy systems will expire on January 1, 2027. This exclusion has been a significant incentive for businesses, preventing property tax increases from solar installations. Solar installation can cost $1 to $2 million or more for large commercial buildings, warehouses, and agricultural operations. Without this exclusion, the added value of the solar system would lead to a substantial increase in property taxes.
While solar is an excellent long-term investment, Pickett Solar wants to help you maximize your savings by taking advantage of every opportunity available. Acting now not only ensures you lock in the property tax exclusion but also makes smart business sense by leveraging all potential savings. Don’t leave money on the table—start your solar project today to secure these financial benefits before it’s too late. Every month you wait could mean higher costs down the road, so there’s no time to delay.
Solar Property Tax Exclusion Timeline
For businesses considering solar, the window to take advantage of this tax benefit is closing fast. Large, complex commercial solar projects often take 12 to 18 months to complete, so it’s critical to start the process now to meet the deadline. Projects must have their final permits issued by December 31, 2026; any portion of the system completed after the deadline will not qualify for the exclusion.
By acting now, businesses can lock in substantial property tax savings while also enjoying long-term energy cost reductions. Contact us today to learn more about how solar energy can benefit your commercial property and ensure your project is completed in time to take full advantage of this valuable exclusion.
Important Deadline
The property tax exclusion will expire on January 1, 2027
What will happen?
After January 1, 2027 the cost of your solar system will be added to your property taxes.
Act now!
Commercial solar systems can take 12 – 18 months to complete.
Substantial Savings!
Lock in substantial property tax savings while also enjoying long-term energy cost reductions.