Beyond Bending Tell You How
As the world shifts to renewable energy sources, more and more homeowners are considering installing solar panels on their properties. One of the concerns that come up when considering solar panels is whether they will increase property taxes. This is a valid concern, as no one wants to pay more taxes than they have to. In this article, we will explore whether solar panels increase property taxes or not.
Before we dive into the details, it’s important to understand how property taxes work. Property taxes are taxes that homeowners pay on the value of their property. The value of the property is determined by the local government based on factors such as the location, size, and condition of the property. Property taxes are used to fund local services such as schools, roads, and emergency services.
Factors That Determine Property Taxes
Property taxes are determined by a variety of factors, including:
- The location of the property
- The size and condition of the property
- The value of the property
- The local tax rate
The value of the property is the most significant factor in determining property taxes. The value of the property is determined by the local government and is based on the market value of the property. The market value of the property is the price that the property would sell for in an open and competitive market.
How Solar Panels Affect Property Taxes
Now that we understand how property taxes work let’s explore whether solar panels increase property taxes or not. The short answer is that it depends on where you live. In some states, solar panels will increase property taxes, while in other states, they will not.
States That Do Not Increase Property Taxes for Solar Panels
In some states, solar panels are exempt from property taxes. These states include:
| State | Exemption Type |
|---|---|
| Arizona | 100% exemption |
| California | 100% exemption for the first 15 years |
| Florida | 100% exemption |
| Illinois | 100% exemption |
| Indiana | 100% exemption |
| Kentucky | 100% exemption |
| Michigan | 100% exemption |
| Minnesota | 100% exemption |
| New Mexico | 100% exemption |
| North Carolina | 80% exemption |
| Ohio | 100% exemption |
| Oregon | 100% exemption |
| Tennessee | 100% exemption |
| Texas | 100% exemption |
| Washington | 100% exemption |
| Wisconsin | 100% exemption |
If you live in one of these states, you will not have to pay additional property taxes for installing solar panels on your property. This is because these states have laws in place that exempt solar panels from property taxes.
States That Increase Property Taxes for Solar Panels
In some states, solar panels will increase property taxes. These states include:
| State | Property Tax Increase |
|---|---|
| Colorado | Homeowners can expect to pay an additional $15 to $30 per year for every $1,000 of added property value due to solar panel installation. |
| Connecticut | Homeowners can expect to pay an additional $8.75 per kW of installed solar panel capacity. |
| Massachusetts | Homeowners can expect to pay an additional $2.60 per kW of installed solar panel capacity. |
| New Jersey | Homeowners can expect to pay an additional $3.50 per kW of installed solar panel capacity. |
| New York | Homeowners can expect to pay an additional $7.50 per kW of installed solar panel capacity. |
If you live in one of these states, you will have to pay additional property taxes for installing solar panels on your property. The amount of the increase will depend on the state you live in and the size of your solar panel installation.
Conclusion
So, do solar panels increase property taxes? The answer is that it depends on where you live. In some states, solar panels are exempt from property taxes, while in other states, solar panels will increase property taxes. If you are considering installing solar panels on your property, it’s important to understand the laws in your state regarding solar panels and property taxes.
People Also Ask
Do solar panels increase home value?
Yes, solar panels can increase the value of your home. According to the National Renewable Energy Laboratory, homes with solar panels sell 20% faster and for 17% more than homes without solar panels.
Does leasing solar panels affect property taxes?
Leasing solar panels does not affect property taxes in most states. The company that owns the solar panels will be responsible for paying property taxes on the panels.
How can I find out if solar panels will increase my property taxes?
You can contact your local government or a qualified tax professional to find out if solar panels will increase your property taxes.
