Virginia Gov. Glenn Youngkin signed a bill into law today that creates a property tax exemption for residential and mixed-use solar energy systems up to 25 kilowatts. SB 686 expands energy freedom for consumers and creates an additional incentive to do business in the Commonwealth.
“With his signature today, Governor Youngkin has significantly strengthened customer energy choice in Virginia with a business-friendly approach to promoting the local clean economy. This new law empowers millions of Virginians to choose the energy that works for them, while increasing the value of their homes and creating certainty to attract new businesses and jobs,” said Will Giese, southeast regional director for SEIA, in a statement.
“The solar industry employs over 4,000 Virginians and has helped tens of thousands of state residents lower their electricity bills by going solar. Virginia now has a home-generation tax policy that is competitive with other southern states, and companies are ready to continue growing the local economy and lowering energy costs for people across the Commonwealth. Looking ahead, SEIA will continue to be a steadfast advocate for an open and competitive solar and storage market in Virginia,” he continued.
News item from SEIA
Guy jones says
How much does it save on property tax
how long long does it last was told 10 years
Does this help homeowners with an existing solar array? At first I thought this meant my entire property was now exempt from property taxes, but now I think it’s just the array? I don’t believe I was paying property taxes on my array, so I’m not sure I understand how this helps.
Max Williamson says
Wish the post told us what the law actually does in terms of homeowner tax bills, whether it is mandatory on local municipalities and other practical knowledge rather than just repeating the government’s self-promoting press release. Thanks.
Kelsey Misbrener says
Hi Max, the bill text says solar projects under 25 kW “shall be wholly exempt from state and local taxation under the Constitution of Virginia.” It also says the bill has a delayed effective date of January 1, 2023. I hope that’s helpful!
Stevie Stephens says
Thank you for the detail. It’s really helpful to know that we can’t take advantage of this until next year. It is a bit unfortunate that with the current inflation it’s possible that the delay could cost hundreds of dollars or more while you choose between the rising costs or the tax exemption.