Adding Solar or a Battery? Finish Before 2027 to Keep It Off Your Property Taxes

For years, California has made sure that adding solar to your home doesn't raise your property taxes. That protection is set to end. Systems completed after December 31, 2026 no longer qualify, unless the state passes an extension.

What's changing

Today, when you add solar, your county doesn't count it when it assesses your home's value. Starting January 1, 2027, new solar, a battery added to existing solar, or more panels can be added to your assessed value. That means a higher property tax bill every year.

A bill to extend the exclusion (AB 2389) did not pass this year. No extension is in place.

Who this affects

• Homeowners going solar for the first time
• Solar owners adding a battery
• Solar owners adding more panels

Who it doesn't affect

If your system is completed by December 31, 2026, it stays protected. The exclusion stays with your home until it's sold.

What it could cost

In San Diego County, property tax is roughly 1% of a home's assessed value, plus local charges. As a rough example, a project that adds $30,000 in value could add around $300 a year to your property tax bill, year after year. Your county assessor decides the actual amount.

Timing matters

The deadline is about when your system is completed, not when you sign. Permits, installation, inspection and utility approval all take time, so projects started late in the year may not finish before December 31.

If you've been thinking about solar, a battery or more panels, now is a good time to get your numbers. I'd be happy to review your recent bills with you and tell you whether it makes sense for your home.

Already have solar? Why add a battery ›

Rules as of October 2026 and subject to change. Sources: AB 2389 status (CalMatters Digital Democracy), Board of Equalization analysis of SB 710, Solar Rights Alliance.