In 2020 California became the first state to require solar panels be installed on all new homes, but one question still remains for homeowners: does the cost of installing solar pay off?
Adding a solar energy system to your home is an excellent investment for most homeowners. Harvesting the power of the sun can help lower your energy bills, increase your home value and contribute to a cleaner environment. Many customers ask if installing solar panels will increase your property taxes as well. The good news is they won’t! While adding a new SunPower solar energy system to your roof will increase the value of your home, it won’t increase the amount you pay when tax season rolls around because of California’s exemption.
There are currently two ways the county can reassess your property. The first is if you sell or buy a new home because your home will be assessed and as a result, your property taxes will likely increase. The second would come with any major renovations to your home that would require you to apply for permits. While you do apply for permits during the solar panel installation process, you won’t pay any additional property taxes when you install the system until the home is sold.
Energy Sage shows that an average solar panel system can add roughly $15,000 in value to your home. As a result, this could add several hundred dollars to your yearly property tax bill depending on your property tax rate. Zillow also reports that homes with solar energy systems installed on their roof sold for 4.1% more on average than comparable homes that didn’t have solar panels installed. This is especially true for homes in coastal metropolitan areas like the Bay Area, which can fetch a premium of around 4%. This can be counted as significant savings when you install your solar panels. Check with your local tax office or ask one of our energy consultants as it’s usually a simple form that needs to be filled out and submitted in order to qualify for the tax break.
Senate Bill 871 puts this exemption in place until 2025 so if you’re interested in saving with solar, there’s never been a better time, especially for property tax breaks. Check with your tax professional for tax-related details. Give us a call today for all your solar questions and we’ll create a customized quote to find out how much you and your family can save by adding solar to your roof.
Ready to find out how much you can save with solar? Contact us today for a free customized quote!