Sunsetting Property Tax Exemption

California’s solar landscape is constantly evolving. At JKB Energy, we’re here to help you stay ahead of the curve and plan for the future. One critical update – the property tax exemption for new solar projects is ending soon. Here’s what you need to know:

When does this take effect?

The property tax exclusion sunsets on January 1, 2027. Your system must have its final building permit issued prior to December 31, 2026 to continue to qualify for the property tax exclusion. If construction on your system starts before December 31, 2025, but isn’t completed by the end of 2026, only the portion completed by the end of 2025 will qualify for the exclusion.

Who is affected?

This impacts any new solar projects or retrofits on existing properties. Only the property owner at the time of install qualifies for the property tax exclusion; it won’t transfer to new owners if you sell the property down the line. Any solar + storage projects that receive their final building permit by the end of 2026 will be grandfathered into the property tax exclusion, securing those valuable tax breaks.

What does this mean for you?

If you already have a system installed, you’re in luck – those property tax exemptions are locked in.

If you don’t have a system yet, the window is closing fast. From initial proposal to design, permitting, and approval stages, solar projects can take the better part of a year (9-12 months) before even starting construction. Now is the time to act; don’t wait until it’s too late!

As you’re planning your strategic business decisions over the next 24 months, keep this change in mind. To start weighing your options and energy needs, call us at (209) 668-5303 for a free energy assessment and discover how solar + storage can benefit you before these changes take effect.

Plan ahead & save big!