Florida

Florida’s Property Tax Exemption for renewable energy systems allows homeowners to install solar panels and other renewable energy equipment without increasing their property taxes. Under this state law, the added value that solar installations bring to your home is completely exempt from property tax assessment for residential properties. This means you can enjoy the increased home value from your solar system without paying higher property taxes on that improvement.

For residential properties, 100% of the added value from renewable energy devices is exempt from property tax assessment. The exemption covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and all integral components of the renewable energy system. To qualify, the renewable energy equipment must have been installed on or after January 1, 2013 for residential properties. The exemption is currently set to expire on December 31, 2037, after which it will revert to covering only residential properties (non-residential properties will lose their partial exemption).

This exemption applies automatically once your renewable energy system is installed and assessed – no separate application is required. The benefit continues for as long as you own the system and remains in place if you sell your home. This makes solar installations more financially attractive by ensuring that the investment in clean energy won’t result in higher ongoing property tax bills.

Florida’s Sales Tax Exemption for solar energy systems eliminates the state’s sales and use tax on solar equipment and components. This means homeowners don’t pay the typical 6% state sales tax (plus any local sales tax) when purchasing solar panels, inverters, batteries, mounting equipment, and other qualifying solar system components. The exemption applies to both purchased and leased solar equipment.

The financial benefit varies based on your system size and local tax rates, but can save homeowners hundreds to thousands of dollars. For example, on a $20,000 solar system, you could save $1,200 or more in state sales tax alone. The exemption covers a comprehensive list of equipment including solar panels, inverters, batteries, mounting hardware, wiring, and even pool solar heating systems. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents installing qualifying solar energy systems.

To claim this exemption, you’ll need to provide documentation to your solar installer certifying that the equipment is being used exclusively for a solar energy system. Keep in mind that standard electrical wiring throughout your home and structural roof components don’t qualify for the exemption – only the solar-specific equipment and wiring unique to your solar system are eligible.

Net metering in Florida allows homeowners with solar panels to receive credits on their electric bill for excess energy their system produces and sends back to the grid. When your solar panels generate more electricity than your home uses, that extra power flows to the utility grid and you receive credits that reduce your future electric bills. The specific terms and benefits vary significantly depending on which utility company serves your area.

Most major Florida utilities like Florida Power & Light (FPL), Duke Energy, and Tampa Electric offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar production that can be carried over month to month. However, these credits are typically “trued-up” annually in December at much lower wholesale rates (around 1.5-3 cents per kWh), and your account resets to zero. Some utilities have also implemented minimum monthly bills ranging from $25-30. A few utilities like Kissimmee Utility Authority and some cooperatives offer net billing instead, where excess energy is immediately credited at lower export rates of 3-9 cents per kWh.

Important considerations include that net metering policies can change over time – some utilities have already transitioned away from 1:1 net metering to less favorable net billing structures. Additionally, utilities may have different rate structures for solar customers, such as demand charges or higher customer fees. The annual true-up process means that while you build credits during sunny months, any unused credits at year-end are typically compensated at wholesale rates rather than the full retail value.