Florida

Florida’s Property Tax Exemption for renewable energy systems protects homeowners from paying higher property taxes when they install solar panels or other qualifying renewable energy equipment. Under this state law, the added value that solar panels bring to your home is completely exempt from property tax assessment for residential properties. This means your property taxes won’t increase even though your home’s actual value has gone up due to the solar installation.

For residential properties, 100% of the renewable energy system’s value is exempt from property tax assessment, while commercial properties receive an 80% exemption. The law covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and other essential components of renewable energy systems. To qualify, the renewable energy equipment must have been installed on or after January 1, 2013 for residential properties, or January 1, 2018 for commercial properties.

This exemption continues for the life of the renewable energy system and has no expiration date for homeowners. The law specifically excludes backup systems and equipment that would be needed regardless of the renewable energy installation. This incentive provides long-term financial protection by ensuring your investment in clean energy won’t result in higher annual property tax bills.

Florida’s Solar Energy Systems Sales Tax Exemption eliminates the state sales tax on solar equipment and components for homeowners. This means you won’t pay Florida’s 6% state sales tax when purchasing solar panels, inverters, batteries, mounting equipment, and other essential solar system components. The exemption applies to both solar electric (photovoltaic) systems and solar thermal systems used for water heating, space heating, and cooling.

The financial benefit varies based on your system size, but typically saves homeowners hundreds to thousands of dollars. For example, on a $20,000 solar system, you would save $1,200 in state sales tax. The exemption covers a comprehensive list of equipment including solar panels, inverters, batteries, mounting hardware, wiring, pumps, controllers, and storage tanks. To qualify, the equipment must be used exclusively as part of a solar energy system, and sellers are required to document the exempt sale with proper certification from the purchaser.

There are no income requirements, deadlines, or time limitations for this exemption – it’s available indefinitely for all qualifying solar installations. However, homeowners should note that this exemption only applies to Florida state sales tax and doesn’t affect local sales taxes that may still apply. The exemption is limited to equipment that’s integral to the solar system itself, so general electrical wiring throughout your home that would exist regardless of the solar installation doesn’t qualify.

Net metering in Florida allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and creates credits on your electric bill. These credits can then be used to offset electricity you draw from the grid when your panels aren’t producing enough power, like at night or on cloudy days.

The financial benefits vary significantly depending on your utility company. Most major utilities like Florida Power & Light (FPL), Duke Energy, and Tampa Electric offer 1:1 net metering, meaning you receive full retail rate credit (typically 10-15 cents per kWh) for excess power during the year. However, some utilities have added minimum monthly bills ranging from $25-30. At year-end, unused credits are typically paid out at much lower wholesale rates (1.5-3 cents per kWh). Some smaller utilities like Kissimmee Utility Authority and Sumter Electric offer net billing with export credits of 8-9.5 cents per kWh year-round.

Eligibility requirements and program details are set by individual utility companies, so homeowners should check with their specific utility provider. Some utilities have switched from net metering to less favorable net billing programs for new customers, while grandfathering existing solar customers under better terms. Important considerations include potential minimum monthly bills, demand charges (like Lakeland Electric’s $5.37 per kW charge), and the significant difference between retail credit rates during the year versus wholesale payout rates for unused credits in December.