California has long supported solar energy with incentives that make going solar more affordable and financially beneficial for homeowners. One of the most significant incentives, the property tax exclusion for active solar energy systems, is set to expire on January 1, 2027. For Bakersfield homeowners considering solar, understanding this deadline is crucial to maximizing your savings and protecting your investment.
Understanding the Property Tax Exclusion
Since the 1980s, California has excluded the added value of solar energy systems from property tax assessments. Normally, adding something valuable to your home, like a pool or an addition, increases your property tax bill. However, solar panels have been treated differently — the value they add does not increase your home’s assessed value for tax purposes.
This exclusion means that if you install solar panels, your property taxes won’t increase as a result, helping you save money over the life of your system.
The Financial Impact of Losing the Exclusion
Starting January 1, 2027, new solar systems installed after this date will no longer qualify for this property tax break. This means the added value of your solar panels could increase your property tax bill. For example, a $25,000 solar system could add roughly $275 per year in property taxes based on an approximate 1.1% tax rate typical for Kern County.
Over 20 years, this could mean an additional $5,500 in property taxes. While this is an added cost, it is important to weigh it against the substantial utility bill savings solar energy provides, especially as electricity rates continue to rise in California.
Why Rising Utility Costs Make Acting Now Crucial
Electricity prices in California, including Bakersfield, have been steadily increasing. This trend makes solar energy an increasingly attractive option to reduce monthly utility bills. Locking in the property tax exclusion before it expires can enhance your overall savings by avoiding the extra annual property tax expense.
By acting now, you can benefit from:
- Protection from increased property taxes related to solar installations
- Long-term savings on your electricity bills
- Increased home value without added property tax costs
Steps to Take if You’re Considering Solar
If you’re thinking about going solar in Bakersfield, it’s important to start the process soon to ensure your system is active before the January 1, 2027 deadline. Keep in mind that simply signing a contract or having panels installed is not enough; your system must be fully permitted, interconnected, and switched on to qualify for the exclusion.
Here are some practical steps:
- Contact a reputable local solar installer experienced with Bakersfield regulations
- Begin the permitting and installation process early to avoid delays
- Ensure your system is fully operational before the deadline
- Request a detailed solar savings evaluation tailored to your home
Secure Your Savings Before the Deadline
The expiration of California’s solar property tax exclusion is a fixed deadline that could affect your long-term solar savings. Bakersfield homeowners have a valuable opportunity to act now and protect themselves from higher property taxes on new solar installations.
Don’t wait until it’s too late. Schedule a free solar savings evaluation today to understand how much you can save by installing your solar system before the 2027 deadline.