Commercial Solar Property Tax Exemption

Summary

The following property tax exemptions for solar facilities are available in Virginia:

100% property tax exemption for the assessed value of equipment and facilities used in:

1. Projects equaling 20 MW or less that serve a public institution of higher education or private college.
2. Projects equaling 5 MW or less.

80% property tax exemption for the assessed value of equipment and facilities used in:

1. Other projects over 5 MW and less than 150 MW. The exemption for projects greater than 20 MW shall not apply to projects upon which the construction begins after January 1, 2024.

The law broadly defines eligible solar facilities as "any property, including real or personal property, equipment, facilities, or devices...designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electrical energy." The exemption does not include the land on which the equipment or facility is located. 

The tax exemption is generally for “certified pollution control equipment and facilities” which includes any property including real or personal property, equipment, facilities, or devices used for the purpose of abating for preventing pollution of the atmosphere or waters in the State. In addition to solar PV, other properties also include, but not limited to, any equipment used to create mulch, compost, landfill gas, synthetic or natural gas recovered from waste or other fuel. 

Local tax exemption options for residential customers can be accessed at this link.