Exemption for Certified Solar Energy

Background

The Virginia General Assembly enacted legislation declaring certified solar energy equipment, facilities, or devices and certified recycling equipment, facilities or devices to be a separate class of property as defined under the Code of Virginia Section 58.1-3661. Chapter 868 of the Loudoun County Codified Ordinances governs the exemption for Certified Solar Energy Equipment.

The Department of Building and Development must certify the application before it is submitted to the Office of the Commissioner of the Revenue Exemptions and Deferrals Division.

The exemption is effective the tax year following the year the application is made.  The amount and duration of the exemption are based on the megawatts of the equipment and the interconnection date.  Solar energy equipment of five megawatts or less that are connected on or after January 1, 2019 receive an exemption equal to the value of the solar energy equipment and the exemption will be for ten years.  Solar energy equipment equaling greater than five megawatts and less than 150 megawatts that filed an interconnection request on or after January 1, 2019 receive a graduated exemption as follows:  80 percent of the assessed value of the solar energy equipment for the first five years after commencement of operations, 70 percent for the second fives years and 60 percent for the remaining years in service.

Megawatts

Interconnection Date

Amount and Duration of Exemption

Less than 5

On or after 1/1/2019

100% of assessed value for 10 years

Greater than 5 and less than 150

On or after 1/1/2019

80% of assessed value for the first five years

70% of assessed value for the second five years

60% of assessed value for the remaining years in service


To receive an exemption, complete the Solar Energy Exemption application and provide the supporting documentation requested to the Department of Building and Development. See the Solar Permits webpage for more information about the permit process.

The application and assistance is available during business hours at the Leesburg office. If you need assistance, please email the Exemptions and Deferrals Division or call 703-737-8557.

Requirements

Certified solar energy equipment, facilities or devices means property certified by the Department of Building and Development to be designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electric energy.