Solar Guide

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 residential-only coverage unless renewed by the legislature.

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. To claim this exemption, your solar installer will need documentation certifying that the equipment is being used exclusively for a solar energy system.

There are no income requirements, deadlines, or time limitations for this exemption – it’s available to all Florida residents installing qualifying solar systems. However, the exemption only applies to equipment that’s integral to the solar system itself, not general electrical work or structural improvements that would exist regardless of the solar installation.

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, the annual true-up process means any accumulated credits above what you use get paid out at wholesale rates rather than the full retail value, so properly sizing your solar system is crucial for maximizing benefits.