ETI Solar Exemption

Tax exemptions can be a powerful tool to incentivize and promote solar energy investment. Code of Virginia section §58.1-3661 recognizes certified solar energy equipment, facilities, or devices as a separate class of property and enables localities to adopt by ordinance a full or partial local property tax exemption. “In 2022, SB 686 was passed and signed into law effective Jan 1, 2023 to update Code of Virginia Section 58.1-3661 A to provide a mandatory state and local tax exemption for residential and agricultural solar facilities with a nameplate capacity of 25kW or less.”

Per the Code of Virginia, "Certified solar energy equipment, facilities, or devices" means any property, including real or personal property, equipment, facilities, or devices, excluding any portion of such property that is exempt under §58.1-3660, certified by the local certifying authority to be designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electric energy.

The table below provides an interactive tool to explore and compare the various solar energy equipment policies adopted by Virginia localities. The tool is current as of June 1, 2022 and includes those localities that have been discovered through desk research as well as those localities that responded “Yes” to Weldon Cooper Center’s 2019 Annual Tax Rates Survey question V.2: “Does your locality have property tax exemptions for the following property classes, as permitted by the Code of Virginia in Sections 58.1-3660- 58.1-3666: Certified solar energy equipment facilities or devices (Section 58.1-3661)?”

Locality	Full/Partial Exemption	Policy Summary	Link to Ordinance	Other Relevant Links	Budget Impact - Coming Soon
City of Alexandria	Full	The property tax exemption is equal to 100% of cost and installation and is deducted from the value of the property every year for 5 (five) years.	Link to Ordinance	Solar Energy Equipment Exemption Forms	N/A
City of Charlottesville	Full	The amount credited will be calculated by applying the current tax rate to the amount of the purchase and installation costs of the certified solar energy equipment, facilities or devices.	Link to Ordinance	charlottesville.gov Solar Energy Tax Exemption Application	N/A
City of Fredericksburg	Full	"Upon receipt of an approved and certified application, the Commissioner of Revenue shall determine the value of the equipment as provided in Code of Virginia § 58.1-3661 D and E. They shall record the total real estate tax, the value of the solar energy tax exemption, and the final amount due in the land book, and report the final amount due to the Treasurer for collection." Effective the succeeding year.	Link to Ordinance	fredericksburg.gov (Pages 4 and 5)	Pages 2 and 3
City of Hampton	Full	The amount of the exemption provided for by this division shall be determined by applying the local tax rate to the value of the certified solar energy equipment, facilities or devices and subtracting one hundred (100) percent of such amount from the total real estate property tax due on the real property to which such equipment, facilities or devices are attached.	Link to Ordinance	Solar Energy Tax Exemption Application	N/A
City of Harrisonburg	Full	100% of assessed value for first 20 years of useful life	Link to Ordinance	N/A	N/A
Albemarle County	Full	"Exemption. This class of property is exempt from local taxation, as provided in Virginia Code § 58.1-3661"	Link to Ordinance	N/A	N/A
Chesterfield County	Full (for residential)	Upon receipt of a certified application from the building official, the county assessor shall determine the value of such qualifying solar energy equipment, facility or device. The exemption provided by this article shall be determined by applying the county tax rate to the value of such equipment, facility or device and subtracting that amount from the total real estate tax due on the real property to which such equipment, facility or device is attached. ... so long as such equipment, facility or device is attached to and used solely in conjunction with the owner's place of residence... permitted for 5 years.	Link to Ordinance	N/A	N/A
Fairfax County	Full	The amount of the exemption provided by this Section shall be determined by applying the local tax rate to the value of the certified solar energy equipment, facilities or devices and subtracting one hundred (100) per cent of such amount from the total real estate property tax due on the real property to which such equipment, facilities or devices are attached. Exemption value will be converted to a tax credit and deducted from the property's tax bill every year for 5 years.	Link to Ordinance	fairfaxcounty.gov Solar Energy Tax Exemption Form	N/A
Fauquier County	Full	The exemption provided for by this article shall be administered by the commissioner of revenue and shall be determined by applying the local tax rate to the value of the certified solar energy equipment, facilities or devices and subtracting one hundred (100) percent of such amount from the total real estate property tax due on the real property to which such qualifying solar energy equipment are attached. No more than five years.	Link to Ordinance	N/A	N/A
Hanover County	Partial	The exemption provided by this section shall be determined by applying the local tax rate to the value of such equipment, facilities or devices and subtracting one-half of such amount either: (1)From the total real property tax due on the real property to which such equipment, facilities, or devices are attached, or (2)If such equipment, facilities, or devices are taxable as machinery and tools under § 58.1-3507	Link to Ordinance	N/A	N/A
Loudoun County	Full	100% exemption for 10 years for projects 5MW or less. Greater than 5MW and less than 150MW follows Machinery & Tool tax. "If the certified solar energy equipment, facilities or devices are being taxed as real property, the amount of the exemption for each year shall be determined by applying the local real estate tax rate to the value of the certified solar energy equipment, facilities or devices and subtracting 100 percent of such amount from the total real estate property tax due on the real property to which such equipment, facilities or devices are attached, for a total period of ten years."	Link to Ordinance	loudoun.gov Solar Energy Application Form	N/A
Prince William County	Full	100% of solar installation value, applied for 5 years. "The exemption provided for by this article shall be determined by applying the local tax rate to the value of the certified solar energy equipment, facilities or devices and subtracting 100 percent of such amount from the total real estate property tax due on the assessed value of the real property, with such equipment, facilities or devices attached."	Link to Ordinance	Solar Personal Property Tax Exemption Certification Building Development Policy	N/A
Pulaski County	Partial	Pursuant to the authority granted to it by Code of Virginia, § 58.1-3661, the council exempts from local taxation as real or personal property 50 percent of the value of certified solar energy equipment	Link to Ordinance	Solar Personal Property Tax Exemption Certification Pulaski Solar Site	N/A
City of Lexington	Full (with option of Partial by taxpayer)	Value determined by applying the local tax rate, "and subtracting such amount, wholly or partially, from the total machinery and tools tax due on such equipment..."; up to 20 years.	Link to Ordinance	N/A	N/A
City of Lynchburg	Partial	Certified solar equipment, facilities or devices and certified recycling equipment, facilities or devices, as defined herein, are hereby declared to be a separate class of property and shall be taxed at 85 percent of its assessed value.	Link to Ordinance	N/A	N/A
City of Roanoke	Full	The exemption is effective for five years, and the amount is calculated by applying the real estate tax rate to the value of the solar components and subtracting that amount from the total real estate tax due on the property. Alternatively, the incentive may be applicable, using a similar formula, if the solar components are taxable as machinery and tools.	Link to Ordinance	roanokeva.gov	N/A
City of Winchester	Full	Applying local tax rate; The Treasurer shall be entitled to credit the amounts certified by the City Assessor under section 32-103.15 against the total taxes for the tax year in question and shall indicate the amount of each such exemption as a credit on the tax tickets of each qualifying property; up to 5 years	Link to Ordinance	N/A	N/A
Giles County	Full (for residential)	The exemption provided by this section shall be determined by applying the local tax rate to the value of such equipment and subtracting such amount, wholly, either (i) from the total real property tax due on the real property to which such equipment are attached or (ii) if such equipment are taxable as machinery and tools, from the M&T tax due, at the election of the taxpayer. Effective beginning in the next succeeding year, permitted for a term of not less than five years.	Link to Ordinance	N/A	N/A
Scott County	Partial	Partial exemption - Contact Scott County Commissioner of Revenue for details	Code not online	N/A	N/A
King George County	None	No adopted policy	N/A	N/A	N/A
Botetourt County	None	No adopted policy	N/A	N/A	N/A
Augusta County	None	No adopted policy	N/A	N/A	N/A
Sussex County	None	No adopted policy	N/A	N/A	N/A
Spotsylvania County	None	No adopted policy (local exemption was repealed 12/11/2018)	N/A	N/A	N/A
Frederick County	None	No adopted policy	N/A	N/A	N/A
City of Petersburg	None	No adopted policy	N/A	N/A	N/A
City of Suffolk	None	No adopted policy	N/A	N/A	N/A
Isle of Wight County	None	No adopted policy	N/A	N/A	N/A

Virginia Solar Energy Equipment and Facilities Property Tax Exemptions