Claim Exclusion for Active Solar Energy Systems on New Construction
California offers a property tax exclusion for installing a qualifying active solar energy system.
(See Revenue and Taxation Code Section 73 (R & T Code 73) and Assembly Bill 1451, Chapter 538, Stats. 2008.)
- This is a new construction exclusion, which means your property’s assessed value will not increase or decrease due to the solar system.
- If you buy a new home with a solar energy system, you may qualify for a lower assessed value—but only if you show clear proof that the system's value was included in the sale price.
You must provide documents that show:
- The total purchase price
- The value of the active solar energy system
(These are usually found in your escrow closing papers.)
Example:
If you paid $925,000 for a home and $25,000 of that was for the solar system, your property’s base year value would be $900,000.
To apply:
- File the Claim for Solar Energy System New Construction Exclusion - Initial Purchaser form
- Include all required documents
- Submit it within 6 months of the project’s completion