Community Solar Panel Owners Saved From Taxes

According to appraisal officials, a group of solar panel owners in Colorado from a regional community solar farm will not have to file tax forms for their solar panels despite an initial request for property taxes to be assessed.

Alternatively, Clean Energy Collective, the Colorado business that constructed the project, will be liable for property taxes on the distribution equipment needed to pass power to the grid, officials with the Bexar County Appraisal District (BCAD) said.

“We’re always happy to be able to give good news,” stated Chief Appraiser Michael Amezquita, who had earlier declared he’d prefer not to impose taxes to individual panel owners. “It doesn’t happen very often.”

Clean Energy Collective

However, a spokesperson for Clean Energy Collective announced the business considers its property also is immune from property taxes.

Earlier this year, the 244 associates in CPS Energy’s community solar project got tax forms from BCAD, a quasi-state agency that assesses property for taxation to fund local municipalities, school districts, and other government agencies.

The progress was remarkable to some panel owners, who looked to a state law that excuses personal solar panels from property taxes. Precinct 3 County Commissioner Kevin Wolff was with the local officials who drafted to BCAD saying that Clean Energy Collective, not the individual owners, should receive the tax duty.

In a July 23 letter addressed to panel owners, BCAD officials concurred, stating the exemption in state law does, in fact, apply to community solar panels. Amezquita said BCAD staff will “disregard” tax information it already has collected from panel partners.

The problem of how to tax community solar remains relevant, with CPS Energy prepared to negotiate for another community solar project up to nearly five times bigger than the existing one. The municipally owned electric and gas utility companies are using community solar to increase access for renters and people whose roofs aren’t well-positioned for solar panels.

In 2015, CPS Energy chose Clean Energy Collective, a leader in the community solar (also identified as roofless solar) business form, to install almost 11,200 solar panels at the site off of Highway 87 near the intersection of Loop 1604 east of San Antonio.

CPS Energy consumers could then buy panels at the site and get credits on their utility bills. The panels sold out in the opening year.

Not Eligible 

After meeting with CPS Energy officials, income tax authorities, auditors, and staff lawyers, BCAD officials concluded the property was not eligible because it only presents a bill credit and has no cash value, among other determinants, according to BCAD’s letter to participants.

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