2026 Solar Tariffs & California Property Tax Changes: What Homeowners Need to Know

Two important solar deadlines are approaching. New federal solar trade measures begin December 4, 2026, and California’s existing solar property tax exclusion is scheduled to sunset January 1, 2027. Here is what Fresno and Central Valley homeowners should know.

If you have been considering solar for your home or business in California, two separate developments, one federal and one state, make 2026 a meaningful year to get a solar project completed rather than merely started.

Neither change means homeowners need to rush into a decision. But if solar is already something you’re planning, both deadlines are good reasons to start the process earlier rather than waiting until the end of the year.

A 15% ad valorem tariff applies to covered downstream polysilicon derivative products.

A minimum import price (MIP) program sets price floors, enforced through additional specific tariffs:

Product	Minimum import price
Polysilicon	$21 per kilogram
Polysilicon ingots and wafers	$100 per kilogram
Solar cells	$0.22 per watt
Solar modules	$0.38 per watt

Importers must document that the first arm’s-length U.S. sale will occur at or above the applicable minimum price, or that the goods are being imported under fixed terms of a contract entered into before August 6, 2026.

This action replaces the Section 201 solar safeguard tariffs, which expired in February 2026 after reaching their eight-year statutory limit. The new measure reaches further up the supply chain and covers polysilicon, ingots, and wafers in addition to cells and modules.

What the tariffs cover

• Solar modules and cells are covered. The $0.38 per watt floor sits above where many imported modules have been priced.
• Lithium battery storage is not covered by this proclamation.
• Microinverters are not polysilicon derivatives and are not covered.
• Goods imported under fixed contract terms entered before August 6, 2026 may be treated differently under the certification rules.

The tariff pressure applies to panels. It does not apply to your battery or your microinverters.

What this could mean for California pricing

The real-world impact will depend on the manufacturer, the country of origin, existing U.S. inventory, supply contracts, and how individual suppliers respond. Some equipment is produced domestically, and some importers hold inventory that entered the country before the effective date.

A $0.38 per watt floor on covered imported modules is expected to put upward pressure on solar panel prices. Availability is a second concern worth thinking about.

When contractors, distributors and developers know a major trade change is approaching, demand for existing inventory can increase. Our industry saw this during the last year-end rush, resulting in longer lead times and fewer equipment choices.

If you’re planning solar in 2026, waiting until November leaves very little room.

2. California’s Solar Property Tax Exclusion Sunsets January 1, 2027

The second deadline comes from the state, and for most homeowners it carries more weight.

California Revenue and Taxation Code Section 73 currently excludes the construction or addition of a qualifying active solar energy system from the definition of “newly constructed” for property tax purposes. Under California property tax rules, qualifying new construction can increase a property’s assessed value. Section 73 provides an exclusion for qualifying active solar energy systems.

The exclusion dates back to 1980, when voters approved Proposition 7, and it has been extended several times since. It is currently scheduled to become inoperative on January 1, 2027.

Two bills amended Section 73 in 2025, SB 710 (Blakespear) and AB 1516, and neither one moved the sunset date. Governor Newsom signed SB 710 on October 3, 2025. Its purpose was to confirm that systems qualifying before January 1, 2027 keep the exclusion until there is a subsequent change in ownership.

Completion is the milestone, not the start date

The Board of Equalization has addressed how the sunset applies to projects built during 2026.

An active solar energy system completed before January 1, 2027 qualifies for the exclusion. Construction that is still in progress when 2027 arrives may not.

The BOE has also clarified that construction does not need to have begun by any earlier date. Completion before January 1, 2027 is the operative milestone.

In most cases there is no separate application to file, because the assessor receives the building permit information directly.

What happens to systems that already qualified

They keep the exclusion until the property changes ownership. When you sell, the buyer’s reassessment picks up the full property value including the solar. This affects your tax bill while you own the home. It is not a permanent exemption that travels with the panels.

Will California tax solar in 2027?

Treat any specific dollar figure with caution.

The documented facts are these. The Section 73 new construction exclusion is scheduled to become inoperative on January 1, 2027 unless the Legislature acts, and systems that qualified before that date continue to receive the exclusion until a subsequent change in ownership.

What is not settled is how much a 2027 installation would add to a given property’s assessed value. That depends on the system, the ownership structure, the property, and how the rules are implemented county by county. Anyone quoting a precise annual tax figure for a hypothetical 2027 installation is estimating.

For your own situation, your county assessor or a tax advisor is the right source. In Fresno County, that is the Fresno County Assessor-Recorder’s office.

Why Waiting Until December Is a Risk

A solar project does not go from signed contract to completed system overnight. Between those two points sit site evaluation, system design, structural and electrical engineering, permitting, equipment procurement, utility interconnection requirements, installation, and inspection. A year-end demand surge across the industry would add to all of it.

Customers who wait until the final weeks of 2026 could run into limited installation availability, permitting backlogs, or difficulty getting their preferred equipment. The sequencing matters as well. The federal change lands December 4, nearly a month before the state exclusion sunsets on January 1.

If you already know you want solar, there is very little upside to waiting.

Your Local Solar, Roofing & Electrical Contractor

SunMade Smart Roofing, Solar & Electric serves homeowners and businesses throughout Fresno, Clovis, Madera, Sanger, Selma, Kingsburg, Reedley, Kerman, Hanford, Visalia, Tulare, and communities throughout the Central Valley.

Unlike many solar companies, SunMade holds California contractor classifications for solar, electrical, and roofing under CSLB License #1039722. That allows our team to evaluate the entire property, including the solar system, battery storage, electrical service, and roof, rather than looking at solar in isolation.

We are also Diamond Certified, giving Central Valley homeowners another independent measure of confidence when choosing a contractor for a long-term investment in their home.

With two major deadlines approaching at the end of 2026, choosing a contractor capable of managing the entire project becomes even more important. Permitting, equipment procurement, roofing work when needed, electrical upgrades, installation, and inspections all take time.

If solar is already on your radar for 2026, we recommend scheduling your free consultation now rather than waiting for the year-end rush.

Frequently Asked Questions

When do the new solar tariffs take effect?

December 4, 2026, at 12:01 a.m. Eastern Time, for covered goods entered for consumption or withdrawn from warehouse for consumption.

How much are the 2026 solar tariffs?

The Section 232 proclamation imposes a 15% ad valorem tariff on covered downstream products, plus minimum import prices of $0.38 per watt for solar modules, $0.22 per watt for solar cells, $100 per kilogram for ingots and wafers, and $21 per kilogram for polysilicon.

Do the new tariffs apply to batteries?

No. Lithium battery storage is not covered by the August 2026 Section 232 polysilicon proclamation. Microinverters are also not covered.

Is California ending the solar property tax exemption?

The Section 73 new construction exclusion for active solar energy systems is scheduled to become inoperative on January 1, 2027. Systems that qualify before that date continue to receive the exclusion until there is a subsequent change in ownership of the property.

What is the deadline for the California solar property tax exclusion?

The system must be completed before January 1, 2027. Starting construction in 2026 is not enough on its own, because construction still in progress when 2027 begins may not qualify.

Does the California property tax exclusion cover battery storage?

Section 73 applies to qualifying active solar energy systems as defined in the statute. Whether a particular storage configuration qualifies depends on how it is installed and paired. We can walk through your specific design, and your county assessor is the authority on the assessment itself.

Did the Legislature extend the solar property tax exclusion?

Not as of this writing. SB 710 and AB 1516 both amended Section 73 in 2025, and neither changed the January 1, 2027 date. SB 710 confirmed that qualifying systems keep the exclusion until a change in ownership.

What about the federal solar tax credit?

The federal residential clean energy credit for homeowner-purchased systems is no longer available for expenditures after December 31, 2025. Third-party ownership arrangements such as leases and power purchase agreements are structured differently. Ask us how that affects your specific options.

How long does a solar installation take in Fresno County?

It varies with system size, permitting, and utility interconnection. This is why we recommend starting well before the fall rather than compressing the whole process into November and December.