Illinois General Assembly passes bill regulating solar farm property tax assessment rates

A bill that sets the standard for how assessors should evaluate solar farms has passed both the Illinois House and Senate and awaits Gov. Bruce Rauner’s signature.

Senate Bill 0486 amends the property tax code to say a commercial solar energy system should be calculated at $218,000 a megawatt.

McHenry County has seen several solar farm proposals come before its zoning board. Residents have raised concern about how much the developments will bring in for property taxes.

When the bill is signed and goes into effect, then the county could see a jump in property tax revenue from the developments.

Community solar farms in Illinois are limited to four megawatts, which would then have a total value of $872,000. A third of that would be a development’s assessed value at $290,666. The property taxes would vary, depending on the property tax rate on the site.

The topic came up at a recent zoning board meeting as the board considered a request from California-based Borrego Solar Systems Inc.

The company wants to develop a solar farm on a 29-acre parcel of land in Marengo Township on West Grant Highway, about 1,500 feet east of Burma Road, according to county documents.

Borrego would lease 16 acres from property owner Michael Grismer. Grismer said the farmland allows for poor production and the proposal would be a way for him to supplement income on the property.

The development is proposed to be a two megawatt facility – which could power 250 to 300 homes. The land is taxed at a 9.6 percent rate, which means if the development goes through, the county will receive about $13,950 in property taxes from the facility annually through the life of the development.

Right now Grismer pays about $5,200 in property taxes for the land and home onsite, Grismer said.

More legislation through the Illinois Power Agency is in the works related to the subscription service piece of the community solar program, Farkes said.

Borrego plans to bring at least three more proposals before the board for approval for developments in Richmond, Chemung and Hartland townships.

At least five other companies have filed applications for solar farms with the county, as well, according to county records.

Those proposals are scattered throughout Coral and Marengo townships.

Cypress Creek Renewables’ controversial McHenry Township solar farm proposal must go before the County Board next at a date to be determined.