The Green Energy Act and the Feed in Tariff (FIT) and MicroFIT programs have created a groundswell of interest in rooftop solar photovoltaic installations. Solar panel arrays have been popping up on all sorts of buildings, from single family homes to hospitals and schools to warehouses and industrial buildings.
One question that many building owners considering solar have been asking is “will solar panels increase my property taxes?” Until recently, the answer hasn’t been entirely clear.
Last week, the Province answered that question with an emphatic “No”. On January 4, 2012, Ontario Regulation 282/98 under the Assessment Act was amended to clarify that neither the property assessment nor the property tax classification for buildings will change due to the installation of rooftop renewable energy systems. A number of related amendments provide preferential treatment for ground-mounted renewable energy systems as well.
So while installing solar PV won’t get you a break on your property taxes, it won’t drive them up higher the next time your property is assessed. This is important, as otherwise an increase in the property assessment might eat up up to 10% of the revenue from a rooftop solar array.
Good news for urban solar!