Solar Panels – Real Estate or Personal Property?
If the system is actively leased, or covered by a Power Purchase Agreement, its contributory value may not be included in the appraised value of the subject property, as again the
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If the system is actively leased, or covered by a Power Purchase Agreement, its contributory value may not be included in the appraised value of the subject property, as again the
Thus, the PV Modules are items of machinery or equipment and therefore are not inherently permanent structures within the meaning of paragraph (d) (2) of this section and, so, are not real property.
The ownership and debt financing structures commonly found with solar panels are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the
The PV system requirements and exceptions are based on the system being installed on the roof of the building. However, the system can be ground-mounted or installed on other structures on the lot.
Covered by solar PV panels shall be designed for the roof live load. (CBC Section 1607, CRC R301.6) The building official may determine that live load need not be considered for solar PV panels and
In addition to the land, for which the status as real property was never in doubt, the mounts—which are designed and constructed to remain in place indefinitely, are permanently affixed
The solar market has treated PV as “personal” property for federal and state tax purposes. If the IRS were to classify PV as “real” property, it would likely have implications on existing market structures.
If interconnected assets work together to serve an inherently permanent structure (for example, systems that provide a building with electricity, heat, or water), the assets are analyzed together as one
Condition #1 is specific to PV panels supported by a structure having no use underneath and exempts the structural members from fire resistance rating requirements if signs are provided, as determined
Understand what defines a permanent structure on your property and why its classification significantly impacts ownership, value, and regulations.
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