Florida Solar Panels

Florida’s Solar Energy Systems Sales and Use Tax Exemption means that when you purchase a solar panel system, you pay zero sales tax on all qualifying equipment — including solar panels, inverters, racking, batteries, and other accessories. With Florida’s standard sales tax rate at 6%, this exemption can save the average homeowner over $2,000 on a typical installation.

The exemption applies automatically at the point of sale, so there is no separate application to file. Your solar installer will handle the process. The exemption covers equipment certified by the Florida Solar Energy Center as qualifying solar energy components, and it has been a permanent part of Florida law since its original enactment in 1997.

This incentive is available to all Florida residents purchasing a solar energy system, regardless of system size or location. It applies equally to solar-only systems and systems paired with battery storage, making it one of the simplest and most universally accessible solar incentives in the state.

Under Florida Statute 196.182, homeowners who install a solar energy system are completely exempt from paying additional property taxes on the value that the solar system adds to their home. This 100% exemption is currently authorized through 2037, giving homeowners long-term certainty that their property tax bill will not increase as a result of going solar.

Solar installations can add significant value to a home — often $15,000 or more — so without this exemption, homeowners could face hundreds of dollars in additional property taxes each year. The exemption covers all residential solar equipment, including photovoltaic modules, inverters, control devices, wiring, power conditioning systems, and storage devices.

Non-residential (commercial) renewable energy properties are eligible for an 80% property tax abatement under a related provision. For residential homeowners, the exemption is automatic and tied to the property, so no ongoing annual application is typically required once the system is permitted and recorded. Consult your county property appraiser’s office for local filing procedures.

Florida’s net metering policy requires the state’s major investor-owned utilities — Florida Power & Light (FPL), Duke Energy Florida, Tampa Electric Company (TECO), and Florida Public Utilities — to credit residential solar customers at the full retail rate for every kilowatt-hour (kWh) of excess electricity exported to the grid. This one-to-one credit is one of the most favorable net metering policies in the country and significantly improves the financial return on a solar investment.

Excess bill credits roll over from month to month throughout a 12-month period. At the end of the annual cycle (typically in January), any remaining unused credits are paid out in cash at a reduced rate of approximately 3–5 cents per kWh, depending on the utility. Residential systems can be sized up to 115% of the customer’s average annual energy consumption, and there is no statewide aggregate cap on net metering participation.

Important policy change ahead: Florida’s full retail-rate net metering is scheduled to change after 2026. The compensation rate is set to drop to 60% of the retail rate in 2027 and 50% of the retail rate in subsequent years. Homeowners who install solar before the policy changes are expected to be grandfathered into the current favorable rate, making now an especially advantageous time to go solar in Florida.

The Inflation Reduction Act (IRA) of 2022 expanded the Residential Clean Energy Credit to include standalone battery storage systems, meaning Florida homeowners can claim a 30% federal tax credit on the full cost of a qualifying battery installation — even if it is not paired with a new solar panel system. This is a significant benefit for homeowners who already have solar and want to add storage, or who want backup power without panels.

To qualify, the battery storage system must have a capacity of more than 3 kilowatt-hours (kWh). The credit covers the full installed cost, including equipment and labor. The 30% credit rate is in effect through 2032, after which it steps down to 26% in 2033 and 22% in 2034. The credit is non-refundable but can be carried forward to future tax years if it exceeds your tax liability in the year of installation.

To claim the credit, file IRS Form 5695 (Residential Energy Credits) with your federal tax return for the year the battery system is placed in service. You must own the system outright — leased battery systems do not qualify. Consult a tax professional to confirm your eligibility based on your individual tax situation.

The City of Boynton Beach offers a one-time $1,500 rebate to residents who install a qualifying rooftop solar photovoltaic (PV) system through its Energy Edge Rebate Program. This local incentive is designed to reduce the upfront cost of going solar for Boynton Beach homeowners and encourage adoption of clean energy in the community.

To qualify, the solar system must be at least 5 kilowatts (kW) in size and use panels with an efficiency rating above 17.5%. The system must be installed by a certified solar contractor. Expedited permitting may also be available through the city for participating solar installations, which can help reduce installation timelines.

Homeowners interested in this rebate should contact the City of Boynton Beach directly to confirm current funding availability and application requirements, as local rebate programs are subject to budget constraints and may be offered on a first-come, first-served basis.

The City of Dunedin’s Solar Energy Grant Program provides cash-back incentives to residents and businesses that install solar PV systems. The grant is calculated at $0.25 per watt of installed solar capacity, with a maximum grant amount of $2,500 — whichever is lower. For example, a 10 kW system would be eligible for the full $2,500 maximum grant.

Grants are awarded on a first-come, first-served basis and are subject to the availability of program funding. Applicants must be located within the City of Dunedin and must use a qualified solar contractor for the installation. Because funding is limited, interested homeowners are encouraged to apply as early as possible.

Contact the City of Dunedin directly to verify current funding availability, confirm eligibility requirements, and obtain application materials before scheduling your solar installation.

The Jacksonville Electric Authority (JEA) offers a $4,000 rebate to its residential customers who install a qualifying solar battery storage system. This is one of the most generous local battery rebates in Florida and can significantly offset the cost of adding energy storage to a home solar system.

To qualify, the battery system must have a minimum usable capacity of 6 kilowatt-hours (kWh) and must come with a manufacturer’s warranty of at least 10 years. Customers must be active JEA electric service customers in the Jacksonville area. Pre-approval from JEA before installation is strongly recommended to ensure eligibility.

Interested homeowners should visit the JEA website or contact JEA directly to confirm current program availability, funding status, and the full application process, as rebate programs are subject to change and available funding may be limited.

The Orlando Utilities Commission (OUC) offers residential customers a rebate of up to $2,000 for the installation of a qualifying battery energy storage system. This incentive is part of OUC’s broader Residential Energy Efficiency Rebate Program and is designed to help Orlando homeowners reduce the cost of adding battery backup to their solar installations.

To qualify for the full rebate amount, the battery system must have a capacity of at least 8 kilowatt-hours (kWh). Customers must be active OUC electric service customers. As with most utility rebate programs, pre-approval before installation is typically required, and funding may be limited and available on a first-come, first-served basis.

Homeowners should contact OUC directly or visit the OUC website to confirm current program details, eligibility requirements, and the application process before purchasing or installing a battery storage system.

Lakeland Electric offers its residential solar customers a 50% rebate on the cost of installing a qualifying battery energy storage system, up to a maximum rebate of $1,000. This program makes battery storage more affordable for Lakeland Electric customers who want to maximize their solar investment with backup power capability.

To qualify, the battery storage system must provide a minimum of 6 kilowatt-hours (kWh) of usable capacity and must include a manufacturer’s warranty of at least 10 years or 5,000 charge cycles. Importantly, customers must apply for and receive approval from Lakeland Electric before the battery is purchased and installed — retroactive applications are not accepted.

Contact Lakeland Electric directly to obtain the pre-approval application, confirm current funding availability, and review any additional eligibility requirements. This rebate is available exclusively to active Lakeland Electric electric service customers.

The City of Tallahassee Utilities Solar Loan Program provides Tallahassee residents with access to low-interest financing for solar PV system installations. Loans are available with no down payment required, making it easier for homeowners to go solar without a large upfront cash outlay. Loan amounts can be as high as $20,000.

This program is administered directly through Tallahassee Utilities and is designed to make solar energy accessible to a broader range of residents, including those who may not qualify for traditional bank financing. Loan repayments are typically structured through the customer’s utility bill, simplifying the payment process.

Eligibility is limited to active City of Tallahassee Utilities electric customers. Interested residents should contact Tallahassee Utilities directly to confirm current program availability, interest rates, loan terms, and the application process.

The Florida Keys Electric Cooperative (FKEC) Solar Loan Program provides qualified cooperative members with financing of up to $35,000 for the installation of grid-tied solar photovoltaic systems or battery storage systems. This program is specifically designed to help FKEC members in the Florida Keys access affordable solar financing in a region where energy costs and installation logistics can be particularly challenging.

Loans are available to active FKEC member-customers who meet the cooperative’s eligibility criteria. The program covers both solar-only and solar-plus-storage installations, giving members flexibility in how they design their energy systems. Loan repayment terms and interest rates should be confirmed directly with FKEC.

Interested FKEC members should contact the cooperative directly to apply, confirm current program availability and funding, and review all eligibility and installation requirements before proceeding with a solar or battery storage project.

Florida’s Property Assessed Clean Energy (PACE) program enables homeowners to finance solar panel systems, battery storage, and other qualifying energy upgrades with no money down. Instead of a traditional loan, the financing is structured as a special assessment attached to the property’s annual tax bill, repaid at a fixed interest rate over a term of up to 25 years. There are no credit score requirements to qualify, making PACE accessible to homeowners who may not qualify for conventional financing.

One important feature of PACE financing is that the repayment obligation is tied to the property, not the individual homeowner. If you sell your home before the loan is paid off, the remaining balance transfers to the new owner as part of the property tax assessment. Contractors are paid directly by the PACE provider after the work is completed and verified, protecting homeowners from upfront payment risks.

PACE programs are available in most Florida counties, but specific providers and program details vary by location. Homeowners should consult their local government, a certified solar installer, or the DSIRE database to identify the PACE providers operating in their county and to understand all terms before committing to this financing option.

The Solar and Energy Loan Fund (SELF) is a Florida-based nonprofit Community Development Financial Institution (CDFI) that provides affordable, low-interest loans for solar panel installations and other home energy improvements. SELF loans are unsecured, meaning no home equity is required, and they are available to Florida homeowners with a credit score of 500 or above. Loan amounts start at $1,000, and interest rates typically range from 5% to 9.5% depending on the applicant’s financial profile.

Unlike many traditional lenders, SELF does not impose income limits, making its loan products accessible to a wide range of Florida homeowners — including those with limited credit history or lower incomes. The program is specifically designed to remove financial barriers to clean energy adoption and help households that might otherwise be unable to afford solar installations.

SELF loans can be used for solar PV systems, battery storage, energy efficiency upgrades, water conservation improvements, and windstorm upgrades. Florida homeowners interested in SELF financing should contact the organization directly to learn about current loan products, terms, and the application process.

Clay County offers a $600 rebate to residents who install a qualifying solar hot water heating system on their property. Solar water heaters use energy from the sun to heat household water, reducing reliance on electric or gas water heaters and lowering monthly utility bills. This rebate helps offset the upfront cost of the system and makes solar thermal technology more financially accessible to Clay County homeowners.

Eligibility requirements, qualifying equipment specifications, and the application process should be confirmed directly with Clay County or the relevant utility provider administering the program, as local rebate programs are subject to funding availability and may change over time.

Homeowners in Clay County interested in this rebate should contact their local utility or county government office before purchasing or installing a solar water heating system to ensure they meet all requirements and that funding is still available.