County Adjusting to State’s Declining Solar Tax Exemption

County supervisors are preparing to change the county tax code after the General Assembly this year cut away at the local tax exemption offered to large-scale solar energy projects.

The change is necessary to conform to state law and continue offering a property tax exemption for large local solar projects. Currently, Loudoun County grants a 100% exemption on the assessed value of solar energy projects. The change affects projects exceeding five megawatts, of which there is only one so far in Loudoun receiving an exemption.

The new law grants an 80% exemption for the first five years, a 70% for the second five years, and 60% for all the remaining years in service.

According to Commissioner of the Revenue Robert S. Wertz, the county gives up a total $47,698 in revenues through the exemption, including 105 residential solar projects that total $39,664 and the one commercial project that exceeds five megawatts totaling $8,034. In 2020, the average residential solar exemption saves the property owner $377.75. Supervisors sent the change to a Dec. 9 public hearing.

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