When it comes to solar panels in Pennsylvania, one question that often comes up is whether or not they will increase property taxes.
In this article we will dive into the details of the question and reveal some PA solar incentives and programs designed to help you reduce your taxes when going solar in PA!
Read on to learn more or enter your zip code below to see exactly how much you could save with solar and which PA solar incentives you qualify for!
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Do Solar Panels Increase Property Taxes?
The short answer is no, solar panels do not typically increase property taxes in the state of Pennsylvania. In fact, PA offers a number of incentives and programs to encourage homeowners to install solar panels on their properties. The Pennsylvania Sunshine Program, for example, provides financial incentives for residents who install solar panels on their homes. Additionally, the state's Property Assessed Clean Energy (PACE) program allows homeowners to finance the installation of solar panels through their property taxes, rather than paying for them upfront.
It's worth noting that while solar panels do not typically increase property taxes in Pennsylvania, they can increase the value of your property! This is because solar panels are considered a home improvement, and can make a home more energy efficient and environmentally friendly. As a result, solar panels can increase the value of a property by 4% - 7% on average, which could ultimately result in a higher property tax assessment.
However, it's important to note that in Pennsylvania, property tax assessments are based on the value of a property as of January 1st of the preceding year. So if you install solar panels on your property after that date, it is unlikely that they will be considered in your property tax assessment for that year.
Tax Advantages of Going Solar in PA
Going solar in Pennsylvania offers several tax advantages that can significantly benefit homeowners and businesses. Here are some of the key tax advantages of going solar in PA.
Federal Investment Tax Credit (ITC): By installing a solar energy system, you may be eligible for the federal ITC, which allows you to claim 30% of the system's cost as a tax credit. This credit reduces your federal income tax liability, resulting in substantial savings.
Pennsylvania Solar Renewable Energy Credits (SRECs): Through the PA Sunshine Solar Program, homeowners and businesses can earn Solar Renewable Energy Credits (SRECs) based on the electricity generated by their solar panels. These SRECs can be sold on the market, providing an additional source of income and potentially offsetting the upfront costs of the solar installation.
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Do I Qualify?
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Solar Panels & Property Taxes
In conclusion, solar panels do not typically increase property taxes in Pennsylvania. The state offers a number of solar incentives and programs to encourage residents to install solar panels on their homes, and while they may increase the value of a property, they are unlikely to be considered in property tax assessments. Additionally, the state's property tax freeze program helps ensure that solar panels do not have a negative impact on property taxes for eligible residents.
If you or someone you know is interested in going solar, start here with a free Solar Savings Quote to see just how much you could save with solar and a free quote of how much your dream solar system costs. There has never been a better time to go solar in PA. Start your solar journey and explore all of your solar options!
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Although solar panels may increase the value of your home, they typically do not increase property taxes because of assessment dates and other tax advantages of solar available in PA to offset the costs of going solar. Learn more.
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