Checked September 26, 2026
It depends on the state.
Texas, California, Illinois, North Carolina, Michigan and Kansas each have a state law that exempts, excludes or specially values some or all of the value a qualifying solar system adds, each with its own conditions, and California's exclusion is scheduled to sunset on January 1, 2027. Missouri's statewide exemption was held unconstitutional in 2022 and no statewide rule was found for Georgia, Kentucky or Oklahoma, so confirm how your home will be valued with your county assessor or appraisal district.
States that protect home solar use different methods. Texas exempts the appraised value that a solar energy device adds to real property when the device is primarily for producing and distributing energy for use on site, and California does not treat adding an active solar energy system as new construction, so the existing assessment does not go up. North Carolina excludes 80 percent of the appraised value of a solar energy electric system, while Illinois lets the owner claim an alternate valuation at the lower of the home's value with a conventional heating or cooling system or its value with the solar energy system. Michigan tells assessors not to count the added value of a qualifying residential system until the property is sold, and Kansas exempts property used predominantly to produce electricity from renewable sources, including solar, for a limited number of years.
Some of these rules require paperwork and some do not. In Texas the owner applies to the chief appraiser of the appraisal district, and once allowed the exemption does not have to be claimed again each year unless the chief appraiser asks for a new application. North Carolina requires a single application to the county assessor, Illinois requires the owner to file a claim with the chief county assessment officer, and Kansas requires an exemption request filed with the county appraiser, who sends a recommendation to the state Board of Tax Appeals for a decision. In California, the Board of Equalization says an owner who adds a system to an existing building does not have to file, because the exclusion should be granted when the assessor receives a copy of the building permit.
Missouri law still lists solar energy systems not held for resale as exempt, but the Missouri Revisor of Statutes notes that the Missouri Supreme Court held that exemption unconstitutional in 2022. Missouri law directs assessors to assess all real property each year, including new construction and improvements. No statewide property tax exemption or special valuation for home solar was found in the official Georgia, Kentucky or Oklahoma sources reviewed. The local offices to ask in those states are the county board of tax assessors in Georgia, the county property valuation administrator in Kentucky, and the county assessor in Oklahoma.
State by state
The 10 states we cover. Each answer links to the law itself and to that state's solar page.
Missouri RSMo 137.100(10) still lists solar energy systems not held for resale as exempt, but the Revisor of Statutes notes that the Missouri Supreme Court held that exemption unconstitutional in 2022 in Johnson v. Springfield Solar 1, LLC. No other statewide solar rule was found, and Missouri law directs assessors to assess real property each year, including new construction and improvements, so confirm with the county assessor.
Solar energy systems not held for resale exemption, held unconstitutional in 2022, RSMo 137.100(10) · Missouri solar rules
K.S.A. 79-201 Eleventh exempts property actually and regularly used predominantly to produce electricity from renewable resources, including solar and photovoltaic, and when the application is filed after December 31, 2016 the exemption lasts for the 10 taxable years after the year the system is completed. The owner files an exemption request with the county appraiser, and the state Board of Tax Appeals decides it.
Renewable energy electric generating property exemption, K.S.A. 79-201 Eleventh · Kansas solar rules
Under 35 ILCS 200/10-10, an owner whose home has a solar energy system can file a claim with the chief county assessment officer for an alternate valuation that uses the lower of the home's value with a conventional heating or cooling system or its value with the solar energy system. The definitions in 35 ILCS 200/10-5 cover systems whose electricity is primarily used on the property, including qualifying leased or power purchase agreement systems, and no end date is stated in either section.
Valuation of solar energy systems, 35 ILCS 200/10-5 and 10-10 · Illinois solar rules
MCL 211.27(2)(p) tells assessors not to count the added value from installing an alternative energy system, which includes solar, on residential property until the property is sold, if the system is 150 kilowatts or less and its yearly output does not exceed the yearly use measured at the utility meter. The rule applies regardless of who owns the system, the statute does not describe a separate application, and after a sale the assessor may consider the added value.
Alternative energy system nonconsideration for residential property, MCL 211.27(2)(p) · Michigan solar rules
No statewide property tax exemption or special valuation for home solar was found in the official Georgia sources reviewed. The Georgia Department of Revenue says the county board of tax assessors assesses property at fair market value each year and is the office to contact about valuation.
No statewide property tax exemption or special valuation for home solar was found, and the Kentucky Department of Revenue's list of property tax exemptions does not include solar equipment. Exemption applications in Kentucky go to the county property valuation administrator, which is the office to ask about a solar system.
No statewide property tax exemption or special valuation for home solar was found in the official Oklahoma sources reviewed. The Oklahoma Tax Commission's exemption page tells homeowners to return its property tax exemption form to the county assessor's office, so confirm how a solar system is treated with the county assessor.
Texas Tax Code § 11.27 exempts the appraised value that a solar or wind powered energy device adds to real property when the device is primarily for producing and distributing energy for use on site, and the section sets no end date. The owner applies to the chief appraiser of the appraisal district, and once allowed the exemption does not have to be claimed again each year unless the chief appraiser asks for a new application.
Solar and wind powered energy devices exemption, Texas Tax Code § 11.27 · Texas solar rules
Revenue and Taxation Code § 73 says adding an active solar energy system is not new construction, so the system is not assessed, and the Board of Equalization says an owner adding one to an existing building does not have to file a claim. The section is scheduled to sunset on January 1, 2027; the Board says systems completed before that date may qualify, and excluded systems stay excluded until the property changes ownership.
Active solar energy system new construction exclusion, Cal. Rev. & Tax. Code § 73 · California solar rules
G.S. 105-275(45) excludes 80 percent of the appraised value of a solar energy electric system, meaning the equipment used directly and exclusively to convert solar energy to electricity, and the statute sets no end date. The owner files a single application with the county assessor, which generally does not need to be refiled unless the property, its use, or the owner's eligibility changes.
Solar energy electric system exclusion, G.S. 105-275(45) · North Carolina solar rules
Questions
It depends on the state. Texas, North Carolina, Illinois and Kansas each require the owner to file an application or claim with a local office, while California's Board of Equalization says an owner adding a system to an existing building does not have to file. Check the filing rules with your county assessor or appraisal district.
In California an excluded system stays excluded until there is a change in ownership, and in Michigan the assessor may consider the added value after the property is sold. In Texas an allowed exemption applies until the property changes ownership, and a new owner who wants it must file an application.
In some states they can. Texas exempts a qualifying device owned by a person even if that person does not own the land it sits on, and Michigan's rule applies without regard to who owns the system. Illinois counts third party owned systems under a lease or power purchase agreement on the customer's side of the meter if the system is estimated to produce no more than 110 percent of the electricity used at that meter in the 12 full months before it was placed in service.
The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.
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