Loudoun Supervisors Expand Tax Breaks for Solar Equipment

Tax exemptions for certified solar equipment inn Loudoun County will now align with changes adopted by the General Assembly, providing more breaks for some property owners who have solar equipment installed. 

Supervisor Laura A. TeKrony (D-Little River) said the ordinance change will allow for a full exemption rather than a partial one.

“That’s really big. I hope to get solar panels on my rooftop one day. And for calendar year 2025 the residential solar exemption saved the average property owner $308 in annual real estate taxes,” she said. 

Currently, Loudoun County grants solar energy projects of five megawatts or less a taxexemption that gradually declines from an 80% exemption for the first five years, 70% for the second five years, and 60% for all the remaining years in service.

The ordinance revisions will increase the amount of the exemption for small-scale projects of 25 kilowatts or less. For these systems, the proposed amendments will provide a 100% exemption for the life of the equipment versus an exemption that declines from 80% of the assessed value of the project for the first five years in service, 70% of the assessed value in the second five years in service, and 60% of the assessed value for the remaining years in service.

The adopted changes only affect solar energy projects of 25 kilowatts or less. One hundred and ninety-two new solar exemption projects granted a partial exemption for calendar year 2024 have been fully exempted. The 258 new solar exemption projects effective for calendar year 2025 have been granted an exemption of 100% of the value of the solar equipment, in accordance with a recent advisory opinion by the Attorney General.

This year the exemption cost the county $331,083 in foregone revenue from 1,052 residential solar projects and two commercial projects. Based on a static tax rate and project costs, that is expected to increase to $403,921 next year under the changes.