Commercial Solar Property Tax Exemption

Last updated: August 30, 2019

Program Overview

Implementing Sector:State
Category:Financial Incentive
Incentive Type:Property Tax Incentive
Web Site:
Administrator:Virginia Department of Mines, Minerals, and Energy
Eligible Renewable/Other Technologies:Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Photovoltaics, Solar Pool Heating
Incentive Amount:100% exemption for projects up to 5 MW, as well as projects up to 20 MW serving public institutions of higher education or private colleges 80% exemption for projects over 5 MW and less than 150 MW
Eligible System Size:Up to 150 MW; incentive varies by size


Name:VA Code § 58.1-3660
Name:H 1239
Effective Date:01/01/2015
Name:HB 1305


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:

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

- Projects equaling 5 MW or less.

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

- 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. 

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