Does a solar system increase or decrease my property taxes?

Whether your property taxes are affected by an installed solar system depends on which state you live in. Generally, solar systems do not increase property tax as many state governments value the effects of solar panels and want to encourage households to install them.

25 states currently have pledges to exempt the added value of solar panels from property tax. Given the high value that solar panels create for a household, you could be saving money on your property tax exemptions — the amount would depend on the value of your solar system.

There is also a tax abatement program in many states. These programs are designed to incentivize solar system purchases for homeowners and deductions of a certain percentage of the solar system installation costs from property taxes. Check the tax rules in your state to find out which reductions you may qualify for.

Learn more about how to buy solar and solar financing.