Leased solar panels facing property taxes; time for governor to step in, says Court Rich, Director, Rose Law Group Renewable Energy Department

The solar tax would affect leased panels on residences, government buildings, churches and school. Pictured are solar panels installed outside the Burton Barr Library in Phoenix. / Brittany Elena Morris:Cronkite News
The solar tax would affect leased panels on residences, government buildings, churches and school. Pictured are solar panels installed outside the Burton Barr Library in Phoenix. / Brittany Elena Morris:Cronkite News

By Ryan Randazzo, The Republic | azcentral.com

Thousands of Arizonans who lease solar panels could start paying property taxes on those solar panels next year because of a new interpretation of state law, which solar companies are disputing.

Major rooftop-solar companies such as Sunrun Inc. and SolarCity Corp. fought but failed to change the interpretation through a proposal at the Legislature.

Solar leasing companies, which control the majority of new rooftop installations in Arizona, vow to fight the taxes in court if necessary to prevent their customers from paying an estimated $152 a year in taxes for a leased residential solar array, more for those on larger buildings.

“We won’t let our existing customers pay for this and will fight this all the way to court if we have to,” said Will Craven, senior public-affairs manager for SolarCity.

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