California Senate Bill 5770, enacted in 2022, modifies specific property tax assessments related to certain renewable energy sources and energy storage systems. This legislation alters how these systems are valued for property tax purposes, potentially impacting the overall tax burden for property owners who invest in these technologies. For instance, eligible solar energy systems installed on or after January 1, 2023, are generally excluded from property tax reassessment.
The bill aims to incentivize the adoption of renewable energy and storage solutions throughout California. By reducing the potential property tax increase associated with these improvements, the legislation encourages property owners to invest in sustainable energy, contributing to the state’s clean energy goals. This policy change reflects the growing recognition of the role renewable energy plays in addressing climate change and achieving long-term energy independence. Historically, property tax reassessments could deter some property owners from installing these systems due to the increased tax liability.
