Counter-productive public policy

A New Jersey couple installed solar panels in order to save on electricity and be environmentally friendly. Their real estate tax assessment went up $12,000, raising their taxes $400.00 a year, more than their savings.

HAMILTON -- Charley and Susan Rouse consider themselves an environmentally conscientious couple. They recycle, use energy- conserving light bulbs and even have a compost pile in their back yard.

Last August, the couple took their environmentalism a step further by installing solar panels on their Hamilton Lakes Drive home. Energy from the sun would heat their house, saving them money while using less fossil fuels.

But in early fall, the couple got a surprise from the township in the form of a property tax increase based on the value the solar panels.

"We were surprised," said Charley Rouse. "When we asked the tax assessor about it, we were told that it's considered an improvement to the home."

According to township records, the Rouses' property assessment jumped $12,000 for the solar panels, increasing their taxes by more than $400 this year.

The extra tax, Rouse said, outweighs the savings they have been realizing on their energy bills.

Apparently, State law specifically requires the value of solar panels to be included in the tax assessment.

I had been considering adding solar panels, but I never considered this possibility. After all, the State gives homeowners all kinds of direct incentives to install solar. This completely destroys whatever other incentives there might be.

Actually, what turned me away from solar panels is the fact that when you re-roof (about once every 20 years), you have to remove the panels to get at the shingles. The cost of uninstalling and then reinstalling the panels is by no means trivial. And, I'm nearing the end of the roof I have now.