Solar Panels, Property Taxes and Homeowners Insurance
In many states, owned solar panels won’t raise your property taxes, because state law exempts some or all of their value. On insurance, rooftop panels you own are usually covered as part of the house, though you may need more dwelling coverage and your premium could rise a bit. Leased systems are typically insured by the provider. The detail most people miss is the roof: drilling into it can affect your roofing warranty, so get the installer’s roof penetration warranty in writing.
Property taxes
How it works
When you add something permanent to your home, your county may raise the assessed value. Solar can count as an improvement. To encourage solar, many states have passed laws that exclude it from property tax. The laws differ in important ways:
- Full exemption: the added value isn’t taxed at all
- Partial exemption: a percentage is exempt
- Time-limited: the exemption lasts a set number of years
- Local option: the state allows towns or counties to offer it, but they don’t have to
- Sunset dates: the exemption ends on a set date unless extended
Examples from our state research
These are examples, not a complete list. Rules change, and some details need confirming with your local assessor. Check your state page and the incentives hub.
| State | What our research shows (as of October 2026) |
|---|---|
| Texas | 100% of the value added by solar is exempt |
| California | Adding a qualifying system doesn’t trigger reassessment; currently scheduled through January 1, 2027 |
| Massachusetts | Exempt from local property tax for 20 years |
| New York | 15-year exemption from added value; localities can opt out |
| North Carolina | 80% of the system’s value is exempt |
| New Hampshire | Optional exemption that each town decides; many have adopted it |
| Colorado, Connecticut, New Jersey, Maryland, Wisconsin | Residential solar value generally exempt |
| Arizona | Solar devices treated as adding no value for assessment |
| Florida | Value added by residential renewable devices excluded from assessed value |
| Alabama, Georgia, Kentucky, Arkansas | No statewide solar-specific property tax exemption found |
Where there’s no exemption, an owned system may raise your assessment. How much depends on how your assessor values it.
Leased and PPA systems
The provider owns the equipment, so any tax on it is the provider’s business, and some contracts pass costs through. Read your contract’s tax section. A leased system generally isn’t counted in your home’s value. See does solar increase home value.
Sales tax
Some states exempt solar equipment from sales tax. This is a separate rule from property tax. Check the incentives hub or your state page.
Homeowners insurance
Owned rooftop systems
- Usually covered as part of the dwelling. Most standard homeowners policies treat panels attached to the roof like the roof itself: covered for the same perils, such as fire, wind and hail, subject to your deductible.
- Ground-mounted systems may fall under “other structures” coverage, which is often a smaller limit, such as a percentage of your dwelling coverage. Check your policy.
- You may need to raise your dwelling limit. A $24,000 system adds rebuilding cost. If your dwelling limit doesn’t rise, you could be underinsured in a total loss.
- Premiums may rise slightly when you raise coverage. Some insurers also ask about roof age and condition before covering a solar install.
- Not covered: normal wear, gradual degradation, defects (that’s for warranties), and often damage from poor installation.
Leased and PPA systems
- The provider usually insures the equipment for the contract term. Confirm in the contract.
- Your policy still covers your house. If a leaking roof penetration damages your ceiling, that may involve your insurer, the provider and the installer. The contract should say who’s responsible for leaks.
- Liability: ask your insurer whether anything changes with a third-party system on your roof.
Call your insurer before you sign
Ask:
- Are rooftop solar panels covered under my dwelling coverage?
- Should I increase my dwelling limit, and what will that cost?
- Does my roof’s age affect how a solar-related claim is paid?
- Are there any exclusions for solar, such as for panel damage from hail or for removal and reinstall during a roof claim?
- Do you need the installer’s certificates, permits or inspection sign-off?
Many insurers want to know about the installation, and some policies require you to report significant changes. Not telling them can complicate a claim.
Watch out: If your roof is older, a storm claim could pay depreciated value for the roof, and the cost of removing and reinstalling panels may or may not be covered in full. Ask your insurer how they handle panel removal on a roof claim before you install.
Your roof and its warranty
Most rooftop systems are bolted through the roof into rafters, with flashing and sealant at each attachment. Done well, it’s watertight for decades. Done poorly, it leaks.
What can happen to your roof warranty
- Roofing manufacturer warranties may not cover damage or leaks caused by later penetrations unless the work meets their requirements. Some offer approved attachment methods.
- Your roofer’s workmanship warranty may exclude areas disturbed by another contractor.
- Older roofs may have little warranty left anyway.
What to get from your solar installer
- A written roof penetration or leak warranty. Ten years is common for installer workmanship. Note who backs it.
- The attachment and flashing method, and whether it meets your roofing manufacturer’s requirements
- Proof of insurance and a valid license. Look up the contractor on your state board. Links are on your state page.
- Removal and reinstall pricing for when you need a new roof. See replace your roof before solar.
Should you re-roof first?
If your roof has less than about 10 years of life left, replacing it before installing usually makes sense. Removing and reinstalling panels later commonly costs a few thousand dollars, and you lose production while the panels are off. Our roof replacement timing tool can help. A typical asphalt shingle roof costs around $8,000 to $16,000 as of 2026, depending on size and region.
If the installer goes out of business
Installer warranties disappear with the installer. Several large installers failed between 2024 and 2026. Freedom Forever, for example, converted to Chapter 7 liquidation in August 2026, and its workmanship and roof warranties were effectively lost, while manufacturer equipment warranties remained valid. Ask whether the roof warranty is backed by third-party insurance. See solar company out of business and the red flag on installer bankruptcy risk.
Filing a claim
Storms, hail and falling trees are the usual causes of solar claims. See solar weather durability and insurance for how panels hold up.
Before anything happens:
- Keep the contract, equipment list with model and serial numbers, permits, and the final inspection
- Take dated photos of the panels and roof after installation
- Save monitoring logins. A sudden production drop helps date damage.
After damage:
- Stay safe. Don’t climb on the roof or touch damaged panels or wiring. Panels make power whenever light hits them. Call your installer or an electrician.
- Document it. Photos from the ground, monitoring data and dates.
- Call your insurer (owned) or your provider (leased or PPA). For leased systems, the provider usually handles panel repairs.
- Get a solar-qualified contractor to inspect. General roofers may not handle panels.
- Ask about removal and reinstall costs if roof repairs are needed under the panels.
- Check warranties too. If panels failed without a storm, it may be a manufacturer warranty issue, not insurance. See solar panel lifespan and warranties.
HOAs and local rules
Some states limit how much a homeowners association can restrict solar. Others don’t. That doesn’t affect your taxes or insurance directly, but it can affect what you’re allowed to install. See solar HOA rules.
Bottom line: In many states solar won’t raise your property taxes, but check your state’s exemption and whether it has an end date. Call your insurer before signing, raise your dwelling coverage if needed, and get a written roof penetration warranty. Fix an aging roof before panels go on.
Want to see how taxes and insurance fit into the full picture? Our main calculator and payback calculator factor in ownership costs.
Common questions
Do solar panels increase property taxes?
In many states they don't, because state law exempts some or all of the added value from assessment. In states without an exemption, an owned system can raise your assessed value, so check with your county assessor before you buy.
Does homeowners insurance cover solar panels?
Usually, for systems you own that are attached to your roof, they're treated as part of the dwelling and covered for the same events as the rest of the house. Ground-mounted systems may fall under other-structures coverage, which has a lower limit.
Will my homeowners insurance go up if I get solar?
It might go up somewhat if you raise your dwelling coverage to include the system's value. Insurers differ, so call yours with the system price before you sign the solar contract.
Does installing solar void my roof warranty?
It can affect it. Some roofing manufacturer and roofer warranties don't cover leaks caused by later penetrations unless certain installation methods are used, so ask your roofer and get a written roof penetration warranty from the solar installer.
Spotted an error or outdated number? Email hello@unbiasedsolar.com and we'll fix it. No installer or lender paid for or reviewed this guide.