One of the most common questions we hear from Temecula homeowners before they go solar is a concern about property taxes. They have heard that solar adds significant value to a home - the research consistently shows $25,000 to $40,000 for a typical 10kW system - and they worry that means their county property tax bill is about to climb by several hundred dollars a year. The concern is understandable. It is also wrong.
California has one of the most homeowner-friendly solar property tax policies in the country. Under California Revenue and Taxation Code Section 73, the added value of a qualifying active solar energy system is excluded from property tax assessment entirely. Your home goes up in value when you install solar. Your property tax bill does not. The two are deliberately and legally decoupled.
This guide covers exactly how that exclusion works, what qualifies, what does not, how Riverside County administers it, what happens when you sell, how battery storage fits in, and what the current legislative extension status means for homeowners installing in 2026. We will also work through how the exclusion changes the financial math on a typical Temecula solar installation.
AB 1451 and What California Law Actually Says
The California solar property tax exclusion has its roots in legislation passed in the 1970s, but the modern version that most homeowners benefit from was established and significantly strengthened through Assembly Bill 1451 and related Revenue and Taxation Code amendments. The controlling statute is California Revenue and Taxation Code Section 73, titled "New Construction: Active Solar Energy Systems."
The law creates what is technically called a "new construction exclusion" rather than an exemption. This is an important legal distinction. A property tax exemption removes the value from the taxable base permanently or for a defined period. A new construction exclusion prevents the construction or installation of the solar system from being treated as new construction for property tax assessment purposes. The result for the homeowner is the same: the value added by the solar system is not included in your assessed value.
What the Law Says
California Revenue and Taxation Code Section 73 states that the construction or installation of an active solar energy system shall not be considered new construction and therefore shall not trigger a reassessment of the property for property tax purposes.
An "active solar energy system" is defined as a system that uses solar devices to collect, store, or distribute solar energy for sale or for use in heating or cooling buildings or facilities, generating electricity, heating water, or providing process heat.
The exclusion was initially set to expire but has been extended multiple times by the legislature. Each extension has maintained the same fundamental protection: install a qualified solar system, add significant value to your home, pay no additional property tax on that added value. As of 2026, the exclusion remains active under the most recent legislative extension.
The law applies statewide. Every California county, including Riverside, must apply the exclusion to qualifying solar installations. County assessors do not have discretion to include solar system value in assessments when the legal exclusion applies.
How the Solar Property Tax Exclusion Actually Works
Understanding the mechanics of the exclusion helps you confirm it is being applied correctly to your property and know what to do if it is not.
When you install solar panels on your home, California law requires that the county assessor be notified of any new construction. Solar installations go through the standard building permit process: your installer pulls a permit, the work is inspected, and the permit is finalized. The finalized permit is then reported to the county assessor as a completed improvement.
Normally, a completed improvement triggers a partial reassessment. The assessor values the improvement and adds that value to your assessed property value, which increases your property tax. For solar, this does not happen because the exclusion intercepts the process. When the assessor receives the permit notification for an active solar energy system, they record the installation in the property records but do not add the system's value to the assessed property value.
Step 1: You Install Solar
Your installer pulls a building permit from the city or county planning department. The system is installed and inspected. The permit is finalized and reported to the county assessor.
Step 2: Assessor Records the Installation
The Riverside County Assessor-County Clerk-Recorder receives the permit completion notification. They record that a solar system has been installed on your property, note its specifications, and apply the new construction exclusion to the added value.
Step 3: No Change to Your Assessed Value
Your property's assessed value remains unchanged. The solar system's value is noted in the records as an excluded improvement. Your next property tax bill reflects the same assessment as before installation.
Step 4: Optional - File BOE-64-SES
For documentation and to ensure the exclusion is on file, you can proactively submit form BOE-64-SES (New Construction Exclusion Claim for Active Solar Energy System) to the Riverside County Assessor. This is optional when the exclusion is automatic through the permit process, but recommended for a clear paper trail.
In practice, the exclusion is often applied without any action from the homeowner beyond completing the permitted installation. However, verifying that it has been applied is your responsibility. We cover exactly how to do that for Riverside County later in this guide.
How Much the Property Tax Exclusion Saves a Temecula Homeowner
The financial impact of the exclusion depends on two numbers: how much value your solar system adds to your home, and what Riverside County's effective property tax rate is on that value.
On the value side, Lawrence Berkeley National Laboratory research consistently shows that California home buyers pay a premium of $3 to $4 per watt of installed solar capacity for owned systems. A 10kW system (10,000 watts) therefore adds $30,000 to $40,000 to your home's market value. This premium reflects buyers' recognition that they are acquiring a utility cost savings engine along with the house.
On the tax rate side, Riverside County's effective property tax rate for most residential properties is approximately 1.1% to 1.25% of assessed value, once you include the base 1% Proposition 13 rate plus voter-approved bonds and assessments. For a property in Temecula, the total effective rate is typically in the 1.15% to 1.20% range depending on your specific tax area code.
Property Tax Exclusion Savings: Temecula Solar Installations
| System Size | Value Added | Annual Tax Without Exclusion | Annual Savings |
|---|---|---|---|
| 6kW ($3/watt premium) | $18,000 | $207/yr | $207/yr |
| 8kW ($3.50/watt premium) | $28,000 | $322/yr | $322/yr |
| 10kW ($3.50/watt premium) | $35,000 | $403/yr | $403/yr |
| 10kW ($4/watt premium) | $40,000 | $460/yr | $460/yr |
| 25-Year Cumulative (10kW) | $10,075 to $11,500 |
Calculated at 1.15% effective property tax rate. 25-year projection assumes flat tax rate (conservative, as voter-approved bonds can increase the effective rate over time).
What Qualifies for the California Solar Property Tax Exclusion
Not every solar-related installation qualifies. California law defines the eligible systems precisely, and knowing the boundaries avoids surprises after installation.
Systems That Qualify
- +Photovoltaic (PV) solar panels that generate electricity for on-site consumption or export to the grid under net metering
- +Battery energy storage systems installed in connection with a qualified active solar energy system (including Powerwall, Enphase IQ Battery, SunPower SunVault)
- +Solar inverters, racking systems, and monitoring equipment that are integral to the active solar energy system
- +Solar water heaters that use a solar energy system to generate heat for domestic hot water where the system qualifies as active solar energy use
Systems That Do Not Qualify
- -Solar pool heating systems that use thermal collectors to directly heat pool water without generating electricity
- -Standby diesel or propane generators, even if paired with solar equipment
- -Battery storage systems that only charge from the grid and have no solar energy connection
- -Roof replacements or structural improvements made in connection with the solar installation (the roof itself is a separate assessable improvement)
- -Wind turbines and other non-solar renewable energy systems (California has separate provisions for these)
The most common point of confusion is pool solar. Many Temecula homeowners have solar pool heaters and assume all solar equipment falls under the same exclusion. It does not. The exclusion requires the system to qualify as an "active solar energy system" under the Revenue and Taxation Code definition, which is tied to electricity generation or specific thermal applications, not passive pool heating.
How County Assessors Handle the Solar Exclusion
The mechanics of how California county assessors process the solar exclusion vary slightly by county, but the underlying legal framework is consistent. Understanding the process helps you confirm the exclusion is being applied correctly.
When your solar installation is complete and the permit is finalized, the local building department sends a copy of the completed permit to the county assessor as part of the standard new construction notification process. The assessor reviews the permit, identifies the installation as an active solar energy system, and applies the new construction exclusion. The system's value is documented in the county's records but flagged as excluded from the taxable assessed value.
In counties with well-organized solar exclusion workflows, this happens automatically within 60 to 90 days of permit finalization. In busier counties or during periods of high solar installation volume, the processing may take longer. The exclusion is legally required regardless of timing, so if there is a delay, the correction should be retroactive to the installation date.
Automatic vs Proactive Filing: When to Do Each
Automatic (most installations)
If your system was installed through a licensed contractor with a proper building permit through the city or county, the assessor receives notification automatically. The exclusion should be applied without additional action from you. Verify it on your next property tax bill.
File Proactively (recommended for these situations)
- - Your property recently had a reassessment event (purchase, addition, appeal)
- - Your system was installed more than 90 days ago and you have not seen it reflected in your property records
- - You want a documented paper trail for future sale or refinancing
- - You added a battery system to an existing solar installation after initial installation
Riverside County Assessor Process: Form BOE-64-SES
For Temecula and Murrieta homeowners, the relevant authority is the Riverside County Assessor-County Clerk-Recorder, with offices in Riverside and satellite offices throughout the county. The Assessor's office processes solar property tax exclusion claims using form BOE-64-SES, which is a statewide standardized form produced by the California Board of Equalization.
BOE-64-SES stands for "New Construction Exclusion Claim for Active Solar Energy System." The form asks for your property address, assessor's parcel number (APN), a description of the solar system installed (including system size, date of installation, and whether it includes battery storage), and your contact information.
Find Your APN
Your Assessor Parcel Number is on your property tax bill, on the Riverside County Assessor website (assessor.rivco.org), or on your deed. It is typically formatted as a series of numbers with dashes (for example, 123-456-789). You will need this for the BOE-64-SES form.
Obtain the Form
Download BOE-64-SES from the California Board of Equalization website (boe.ca.gov) or from the Riverside County Assessor's website. Your solar installer may also have a copy as part of their post-installation packet, since some installers include exclusion claim filing as part of their standard service.
Complete the Form
Fill in your property information, system installation date, system size in kilowatts, whether battery storage is included, and sign the declaration. Include a copy of your final building permit or permit finalization notice if you have it - this accelerates processing.
Submit to Riverside County
Mail or deliver the completed form to: Riverside County Assessor-County Clerk-Recorder, PO Box 751, Riverside, CA 92502-0751. In-person drop-off is available at the main office at 4080 Lemon Street, Riverside, or at satellite offices. Allow 30 to 60 days for processing and confirmation.
Verify the Exclusion
After processing, check the Riverside County property information portal (assessor.rivco.org) to confirm the solar system appears as an excluded improvement on your property record. On your next annual property tax bill, your assessed value should be unchanged from the prior year (adjusted only for the standard Proposition 13 2% maximum increase, not for the solar installation).
The Riverside County Assessor's main customer service line is (951) 955-6200. If you have questions about whether your installation was recorded correctly or need to follow up on a filed exclusion claim, this is the direct contact.
What Happens to the Solar Property Tax Exclusion When You Sell
This is one of the most frequently misunderstood aspects of the California solar property tax exclusion, and it matters both for sellers managing the sale process and for buyers evaluating what they are purchasing.
When you sell your home, the sale triggers a change of ownership reassessment. Under Proposition 13, a change of ownership is a reassessment event: the county assessor resets the property's assessed value to the current market value for the new owner. This is how properties that have been owned for many years by the same family can suddenly see large property tax increases when they sell - the Proposition 13 protection that kept assessed value at historical costs resets.
For solar, the reassessment works like this: the entire property is reassessed at current market value, which includes the home's value with the solar system contributing to that market value. However, the solar system itself is then carved out of the new assessed value under the same new construction exclusion that protected the original owner. The buyer's base assessed value reflects the home without the solar premium, and the solar system's value remains excluded.
Sale Example: Temecula Home With 10kW Solar
The exclusion benefit transfers to the buyer automatically. The buyer does not need to file a new BOE-64-SES form for the existing system. The exclusion is documented against the property, not against the individual owner.
For sellers, this means your solar system creates a measurable financial benefit for buyers beyond just the electricity savings - it gives them a lower property tax basis than they would have without the solar exclusion. This is a legitimate selling point that is often underutilized in real estate transactions involving solar homes.
Battery Storage and Property Tax: Does Adding a Powerwall Trigger a Reassessment?
With the widespread adoption of battery storage in Temecula and the Inland Empire - particularly since NEM 3.0 made batteries financially compelling for new solar customers - the question of whether a battery triggers a property tax reassessment is increasingly common.
The answer for most residential battery installations is no, and California law was specifically updated to make this clear. California Revenue and Taxation Code Section 73 was amended to include energy storage devices installed in connection with an active solar energy system. This covers the Tesla Powerwall, Enphase IQ Battery, Generac PWRcell, LG Chem, SunPower SunVault, and other battery storage products when paired with a qualifying solar installation.
The key phrase is "in connection with an active solar energy system." If you install a battery storage system alongside new solar panels, both the panels and the battery are excluded under the same new construction exclusion. If you add a battery to an existing solar system that was previously installed and excluded, the battery addition is also excluded - you are expanding an already-excluded active solar energy system.
Battery Storage Property Tax Scenarios
Scenario A: Battery Installed With New Solar System
Both the panels and the battery are excluded together under a single new construction exclusion claim. One permit, one exclusion. The full system value is protected from property tax assessment.
Scenario B: Battery Added to Existing Solar System
The battery addition pulls a new permit as an improvement to the existing solar installation. When the permit is finalized, the battery is excluded as an expansion of the existing active solar energy system. The exclusion applies to the battery's added value, which does not get added to your assessed property value.
Scenario C: Standalone Battery (Grid-Only Charging)
A battery that charges exclusively from the grid and has no connection to a solar array may not qualify for the solar new construction exclusion. This is an edge case that should be confirmed with the Riverside County Assessor before installation if you are concerned about property tax implications.
For the vast majority of Temecula homeowners installing a Powerwall or similar battery storage product through a licensed solar installer, the battery is properly paired with a solar system and qualifies for the exclusion automatically. If you are adding battery storage, ensure your installer pulls a permit for the addition - unpermitted battery installations create liability and may not be recognized for the exclusion.
Main Panel Upgrade and Property Tax: Does an MPU Trigger Assessment?
Main panel upgrades (MPUs) are increasingly common in Temecula solar installations, particularly for homes built before 2000 with 100-amp or 150-amp panels that need to be upgraded to 200 amps or more to support a new solar system and EV charging. The property tax treatment of an MPU is different from the treatment of the solar system itself, and understanding this distinction matters.
A main panel upgrade is an improvement to your home's electrical infrastructure. It is a permanent fixture that increases the home's capacity and value independent of the solar installation. California's solar new construction exclusion does not extend to main panel upgrades. The value added by the MPU is, in principle, assessable new construction.
However, in practice, the incremental property tax impact of a main panel upgrade is very small and often falls below the threshold that triggers a formal reassessment notice. A panel upgrade might add $3,000 to $6,000 in value to your home. At a 1.15% effective tax rate, that represents $34 to $69 per year in additional property tax - a minor amount that is separate from the much larger solar exclusion savings.
The cleanest approach: ask your solar installer whether the MPU permit is being pulled separately from the solar system permit. If so, be aware that the MPU value is not protected by the solar exclusion. The solar panels and battery remain fully excluded. Only the panel upgrade itself is subject to standard new construction assessment rules.
The Difference Between Property Tax Exclusion and Home Value Increase
This distinction is critical and is the source of most homeowner confusion around solar and property taxes. California law creates a deliberate split between two things that would normally move together: your home's market value and your assessed taxable value.
When you install solar, your home's market value goes up. Real estate appraisals, buyer behavior, and the research literature all confirm this. A 10kW owned solar system in the Inland Empire adds $30,000 to $40,000 to what a buyer will pay for your home. This is a real, documentable increase in your home's worth.
At the same time, your assessed taxable value does not go up because of the solar installation. The new construction exclusion prevents the solar system's value from entering your assessment. Your property tax is calculated on the taxable assessed value, not the market value. The two can diverge significantly for solar-equipped homes.
How Market Value and Assessed Value Diverge for Solar Homes
| Measurement | Before Solar | After Solar (10kW) |
|---|---|---|
| Home market value | $600,000 | $635,000 to $640,000 |
| Assessed taxable value | $420,000 | $420,000 (unchanged) |
| Annual property tax | $4,830 | $4,830 (unchanged) |
| Gap: market value vs taxable value | $180,000 | $215,000 to $220,000 |
This is one of the few cases where a home improvement makes your house worth more without making you pay more in property taxes. The solar exclusion is essentially a legislative policy choice: California is saying install clean energy, gain home value, and we will not penalize you for it through higher property taxes.
Solar Leases and Property Tax: Who Claims the Exclusion When You Don't Own the Panels?
If you lease your solar panels rather than buying them, you do not own the equipment. The solar company - SunPower, Sunrun, Tesla Energy, or another provider - retains ownership of the panels and inverter installed on your roof. This creates an interesting property tax situation that many homeowners on solar leases do not fully understand.
The solar equipment installed on your roof under a lease is the leasing company's personal property, not an improvement to your real property. This means the equipment is subject to personal property tax paid by the leasing company, not to real property tax paid by you. The leasing company typically files for the active solar energy system exclusion from the real property tax side to ensure the equipment's value is not inadvertently added to your home's assessed value.
From your perspective as the homeowner, the practical outcome is the same as with an owned system: the solar equipment on your roof does not increase your property tax. Your assessed value should not increase because of the panels, regardless of whether you own them or lease them.
Lease vs Ownership: Property Tax Treatment Compared
Owned Solar System
The system is an improvement to your real property. You (or the assessor automatically) file BOE-64-SES. The system's value is excluded from your real property tax assessment. You claim the 30% federal ITC.
Leased Solar System
The system remains the leasing company's personal property. The leasing company files for the exclusion to protect your property tax bill from increasing. The leasing company claims the 30% federal ITC (not you). Your property tax is not affected, but you do not receive the home value premium at the same level as an owned system.
If you are on a solar lease and you notice your property tax bill increased after the system was installed, contact your leasing company first to confirm they filed the appropriate exclusion claim. Then contact the Riverside County Assessor to verify how the equipment is classified in your property record. Errors do occur, and a leased system's value being incorrectly added to your real property assessment is a correctable mistake.
Addressing the "Solar Will Spike My Property Taxes" Concern Directly
The fear that solar will spike property taxes is one of the most persistent misconceptions in the residential solar market, and it shows up consistently as an objection during sales conversations and neighborhood discussions. It is worth addressing directly and specifically.
Misconception: "Solar increases your assessed value, so your taxes go up."
Reality: California law specifically prevents solar from increasing assessed property value. The new construction exclusion under Revenue and Taxation Code Section 73 removes the solar system from the assessment base. Your assessed value does not increase because of solar, even though your market value does.
Misconception: "My neighbor went solar and their taxes went up. Therefore solar raises taxes."
Reality: California property taxes can increase from many causes that have nothing to do with solar: Proposition 13's standard 2% annual CPI adjustment, voter-approved bonds (school bonds, fire district bonds, and community facility district assessments are all common in Temecula), or the neighbor recently bought the home and had a change of ownership reassessment. Correlation with solar installation timing is coincidental, not causal.
Misconception: "The exclusion only lasts a few years, then your taxes catch up."
Reality: The exclusion is not temporary in the way this misconception implies. It excludes the solar system from the assessment base for as long as the system is in place. There is no catch-up provision. Your property tax does not spike after a defined exclusion period - the system remains excluded. What does eventually happen is that the exclusion expires as a statutory matter (the law can lapse), but systems already installed under the exclusion retain their protected status under the terms in place at installation.
Misconception: "Solar only avoids property tax increases in certain counties."
Reality: The exclusion is a California state law that applies in all 58 California counties. Riverside County is not special in any way that limits or expands the exclusion. Every county must apply it. The administrative process for filing claims varies by county, but the legal protection is uniform statewide.
If someone in your neighborhood, your homeowners association, or a real estate agent tells you that solar raises property taxes in California, you can point them to California Revenue and Taxation Code Section 73. The law is unambiguous. Solar adds home value. Solar does not add property tax liability.
AB 1923 and the Extension History: Is the Exclusion Still in Effect in 2026?
California's solar property tax exclusion has been extended multiple times since it was first enacted. Understanding the extension history and current status matters for homeowners making installation decisions in 2026.
The active solar energy system new construction exclusion under Revenue and Taxation Code Section 73 was originally enacted in the 1970s. Over the decades, it was extended, modified, and broadened. A significant update came through AB 1451 in 2008, which extended the exclusion for systems installed through January 1, 2016 and updated the definition of active solar energy systems to reflect modern photovoltaic technology.
The exclusion was subsequently extended through additional legislation. AB 1923 extended the exclusion for systems installed through January 1, 2025. As that deadline approached, the California legislature moved to extend the exclusion again to prevent a lapse that would have subjected post-2025 solar installations to property tax reassessment.
Extension Timeline
The pattern of consistent extension reflects California's strong bipartisan support for residential solar adoption. Each time the exclusion has faced expiration, the legislature has acted to continue it. That said, homeowners installing in 2026 should verify the current exclusion status rather than relying solely on this guide, since legislative action can change the specific terms.
Systems installed while the exclusion was in effect retain their protected status even if the exclusion later lapses for new installations. If you install solar today under a valid exclusion and the exclusion later expires for new installations, your system remains protected. The exclusion applies to the system at the time of installation and continues for the life of that system.
Federal Property Tax and Solar: There Is No Federal Property Tax
This section may seem redundant, but it addresses a genuine point of confusion that comes up regularly when homeowners are researching solar tax benefits. Searches for "solar federal property tax" and "does solar affect federal taxes" are common, and the answer is straightforward.
There is no federal property tax. Property taxes in the United States are exclusively state and local in nature. The federal government does not assess or collect property taxes on residential real estate. When people ask whether solar affects federal taxes, they are typically asking about one of three other things: the federal Investment Tax Credit (the 30% credit on your income tax return), the federal estate tax (which uses fair market value where solar adds value, but this is only relevant for estates above the federal exemption threshold), or federal income tax deductibility of property taxes (which is capped at $10,000 total state and local tax deduction under current law, but this is about deductibility, not about property taxes increasing because of solar).
Federal Tax Benefits From Solar (Separate From Property Tax)
30% Investment Tax Credit (ITC)
Reduces your federal income tax liability by 30% of the total cost of an owned solar installation, including panels, inverter, racking, labor, and battery storage installed simultaneously. Available through 2032 at full 30% rate under the Inflation Reduction Act.
No Federal Tax on Electricity Savings
The electricity savings from your solar system are not considered taxable income. You do not report solar production savings on your federal return. This makes solar savings more valuable on an after-tax basis than equivalent investment income.
No Federal Capital Gains Tax on Solar-Related Home Value Increase (up to exclusion limits)
When you sell your home, the solar-related home value increase is treated the same as any other home value increase under federal capital gains rules. The $250,000 individual / $500,000 married filing jointly capital gains exclusion on primary residence sales applies to the full sale price, including any solar premium.
For a complete guide to the federal tax benefits of solar, see our separate article on how the 30% solar ITC and carry-forward work in California.
How the Property Tax Exclusion Changes Your Solar ROI Calculation
Most solar financial analyses presented by installers focus on the payback period from electricity savings alone. The property tax exclusion creates an additional stream of economic benefit that is rarely quantified in those presentations but is real money that you would otherwise pay.
To properly account for the property tax exclusion in your ROI calculation, you need to add two line items that are typically absent from installer proposals: the annual property tax savings from the exclusion, and the compounded property tax savings over the system's life.
Complete 25-Year ROI Calculation: 10kW System, Temecula (Cash Purchase)
| Benefit Category | Amount | Notes |
|---|---|---|
| Gross system cost | -$35,000 | 10kW installed, Temecula market pricing |
| Federal 30% ITC | +$10,500 | Year 1 federal income tax credit |
| Net system cost | -$24,500 | |
| 25-yr electricity savings (NEM 2.0, 4% escalation) | +$142,000 | SCE bill eliminated |
| 25-yr property tax savings (exclusion) | +$10,500 | $420/yr x 25 years (flat rate assumption) |
| Home value premium at sale | +$35,000 | $3.50/watt premium (conservative estimate) |
| Total 25-Year Net Return | +$163,000 | On a $24,500 net investment |
| Portion From Property Tax Savings + Home Value | $45,500 | 28% of total return, rarely shown in proposals |
The property tax savings and home value premium together represent approximately $45,500 of the total return, or about 28% of the net benefit. These are real financial gains that most installer proposals omit entirely. Standard payback period calculations consistently understate the true financial case for solar by ignoring these two components.
How to Confirm Your Temecula Property Is Getting the Exclusion
After your solar installation is complete and a few months have passed, you should proactively verify that the property tax exclusion is being applied correctly to your Temecula or Murrieta property. This is a straightforward process that takes less than 15 minutes and could save you from paying property taxes you legally do not owe.
Check the Riverside County Assessor Online Portal
Go to assessor.rivco.org and use the property search function to look up your parcel by address or APN. Your property record should show a note or entry indicating an active solar energy system exclusion under the improvements section. If the solar installation appears in your improvements but the exclusion flag is absent, contact the assessor's office.
Review Your Property Tax Bill After Installation
California property tax bills are issued in October for the tax year. After your solar installation, your assessed value on the next bill should be the same as the prior year's assessed value, adjusted only for the standard Proposition 13 maximum 2% CPI increase. If you see a larger-than-2% jump in assessed value in the year after your installation, investigate whether the solar system was incorrectly included in the assessment.
Contact Your Installer About Permit Finalization
Ask your installer to confirm that the building permit for your solar installation was finalized and that the finalization was reported to the city or county planning department. A permit that was pulled but never finalized (failed final inspection or paperwork issues) may not trigger the assessor notification that starts the exclusion process.
File BOE-64-SES if the Exclusion Is Not Confirmed
If you cannot confirm the exclusion through the online portal and the assessor's office has no record of your system, file form BOE-64-SES proactively. Include your permit finalization date, system specifications, and a copy of your permit if available. The assessor will process the claim and retroactively apply the exclusion to the date of installation if eligible.
Appeal if You Were Incorrectly Assessed
If your property was reassessed to include the solar system's value and you believe the exclusion should have applied, you have the right to file an assessment appeal with the Riverside County Assessment Appeals Board. The deadline is typically September 15 or 60 days from the date of the reassessment notice, whichever is later. The exclusion is a legal right, not a discretionary benefit - an incorrect assessment is an error that should be corrected.
If you have questions about your specific situation, call us at (951) 347-1713. We work with Temecula and Riverside County homeowners regularly and can help you understand what to look for in your property records and what to do if the exclusion has not been applied correctly.
Frequently Asked Questions: California Solar Property Tax Exemption
Does adding solar panels increase my property taxes in California?
No. California law excludes active solar energy systems from property tax assessment under the New Construction Exclusion for Solar Energy Systems, originally established by AB 1451. When you install a qualifying solar system on your home, the added value of that system is not factored into your assessed property value. Your Riverside County property tax bill stays the same as if you had never installed solar. This exclusion applies to systems installed for sale, use, or storage of electricity or solar thermal energy for on-site use.
How much money does the California solar property tax exclusion actually save me?
The savings depend on the value your solar system adds to your home and your Riverside County property tax rate. A 10kW solar system in Temecula typically adds $25,000 to $40,000 in home value based on the widely cited $3 to $4 per watt premium documented in Lawrence Berkeley National Laboratory research. At Riverside County's effective property tax rate of approximately 1.1% to 1.25%, that added value would otherwise cost you $275 to $500 per year in additional property taxes. Over a 25-year system life, the exclusion saves you $6,875 to $12,500 in cumulative property tax that you never have to pay.
Do I need to file a form to get the solar property tax exclusion in Riverside County?
In most cases the exclusion is applied automatically after the county assessor receives the building permit finalization from your city or county planning department. However, Riverside County also has a formal claim form, BOE-64-SES (New Construction Exclusion Claim for Active Solar Energy System), which you can file proactively to ensure the exclusion is documented on your account. Filing the form is strongly recommended for systems on properties that have had any recent reassessment events or where you want a clear paper trail. The form is available on the Riverside County Assessor-County Clerk-Recorder website.
What happens to the solar property tax exclusion when I sell my home?
The property tax exclusion transfers with the property when you sell. The new owner continues to benefit from the exclusion for the remaining life of the original system, and the panels' added value remains excluded from property tax assessment. However, when the buyer triggers a change of ownership reassessment (which happens on every standard home sale), the entire property is reassessed at current market value - including everything except the solar system itself. The solar panels are carved out of that reassessment and remain excluded. The new owner does not need to file a new claim form for the system you installed.
Does adding a Tesla Powerwall or battery storage trigger a property tax reassessment?
No, if the battery is installed as part of an active solar energy system or paired with an existing qualified solar installation. California's solar property tax exclusion explicitly covers energy storage systems installed in connection with an active solar energy system. A Powerwall added to an existing solar array qualifies for the same exclusion as the panels themselves. The battery's added value is excluded from your assessed property value. An important caveat: a standalone battery that is not connected to a solar system and only charges from the grid may not qualify for the exclusion, since the exclusion is tied to active solar energy systems specifically.
When does the California solar property tax exclusion expire?
The exclusion was originally scheduled to expire on January 1, 2025. The California legislature has extended it multiple times since its original enactment. As of 2026, the exclusion remains in effect under the most recent legislative extension. AB 1923 and subsequent legislation have kept the exclusion active, though the status of any future extension beyond the current authorization period is subject to ongoing legislative action. Systems installed while the exclusion is active are protected for the duration of that system's life under the terms in place at the time of installation. Homeowners installing in 2026 should confirm current status with the Riverside County Assessor or a qualified tax advisor.
Does a solar lease qualify for the California property tax exclusion?
Yes, but the exclusion claim may be filed by the solar company rather than you, since they own the equipment. When you lease solar panels, the leasing company owns the physical equipment installed on your roof. Under California law, the new construction exclusion applies to the solar system based on its nature as an active solar energy system, regardless of ownership. In practice, the exclusion protects your property tax assessment from increasing because of panels on your roof, whether you own them or lease them. The leasing company may file the BOE-64-SES form for their owned equipment. Confirm with your lease company whether they have filed the exclusion claim on your property.
Does the California solar exclusion apply to pool solar thermal systems?
No. The California solar property tax exclusion applies specifically to active solar energy systems that generate electricity for on-site use or store electricity. A solar pool heating system that uses thermal collectors to directly heat pool water without generating electricity does not qualify as an active solar energy system under the exclusion. Pool solar thermal systems may or may not affect your property tax assessment depending on how your county assessor classifies the improvement. This is one of the most common points of confusion around the exclusion - solar thermal for electricity qualifies, solar thermal solely for pool heating does not.
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