The Unintended Consequences of California’s Solar Tax Exclusion

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feature-0-1392141855125.jpg Section 73 of the California Revenue and Taxation Code allows property tax exclusion for any active solar energy system, including photo voltaic (PV) utility-scale systems, installed through the end of 2016. The exclusion removes barriers for solar energy relative to conventional sources and incentivizes development. Solar installations have indeed proliferated. In 2008, solar PV surpassed solar thermal energy in installed megawatts. Today, California leads the nation in total installed solar energy (about 2,000 megawatts).