Adding solar panels to your home or business will increase its value, which is one of the many advantages of installing a solar energy system. But because solar panels are an investment that increases your property value, you might have questions regarding how installing solar panels will affect your taxes. Any home renovations that add value to your property might mean higher property taxes, so is this the case when you add solar panels to your home or business?
Increased Property Tax?
You need permits to add solar panels to your home and, whenever you apply for permits to add something to your home, the municipality you live in is notified. That means that an assessment will be required: your home will be assessed and re-evaluated to determine how much it is now worth, and by how much your property taxes will increase.
There’s no getting around this assessment: solar panels are not something that you can hide from evaluators who survey your home. For example, if you install solar panels on your own and do not file permits for them, you could be looking at a huge penalty! If your municipality finds out, they will request receipts for your solar panels, and they will require you to pay taxes for all the years that you had them installed on your property.
Although your property taxes could go up significantly after you install solar panels, there are some states and cities that offer property tax exemptions for solar panels. A property tax exemption prevents your home or business’ assessed value from increasing, which means your property taxes will not go up. Depending on where you live, the property tax exemption may be limited to photovoltaics, or other renewable energy sources. So, it is important to check with your local property tax office.
Depending on where you live, you could save anywhere from $40 to $400 a year with the tax exemption! Currently, there are 33 states with some form of property tax exemption:
- North Carolina
- North Dakota
- New Hampshire
- New Jersey
- New York
- New Mexico
- Rhode Island
- South Dakota
- Washington D.C.
If you are considering going solar, come to Go Solar Energy. We will provide you with the best service and all the information you need, for free. Working with a trusted company like Go Solar Energy will not only help you get the most efficient solar panels, but will also help you to save thousands of dollars. Our agents work with the top-rated solar companies in the nation, which is why we can compare all available plans and find the right one for your needs. We will go over all of the tax exemptions in your state and make sure to save you as much money as possible. To get free instant quotes, simply enter your zip code in the bar on our home page, or to speak with one of our licensed agents, call 888-290-3112.