Bill > AB2389

This bill extends the property tax exclusion for customer-sited, active solar energy systems, meaning that the installation of these systems will not increase a property's assessed value for tax purposes. Specifically, it extends this exclusion for systems that are 2 megawatts (MW) or smaller and for systems located on public entity customer property until January 1, 2031. An "active solar energy system" is defined as a system that collects, stores, or distributes solar energy for purposes like heating water, conditioning space, or producing electricity, and "customer-sited" means the system is installed on the customer's property to manage their own energy needs. This extension is a continuation of existing law that already provides this tax benefit, which was set to expire at the end of the 2025-26 fiscal year, and it aims to encourage the adoption of solar energy by making it more financially attractive. The bill also clarifies that the state will not reimburse local agencies for any property tax revenue lost due to this extended exclusion.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2389