Boca Raton, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels or other qualifying equipment won’t increase your property taxes. When you add a solar energy system to your home, the property appraiser excludes 100% of the added value from your property’s assessed value for tax purposes. This means you get all the benefits of a valuable home improvement without paying higher property taxes on that investment.

For residential properties, the exemption applies to solar equipment installed on or after January 1, 2013, and continues through December 31, 2037. The exemption covers solar panels, inverters, batteries, mounting equipment, and other essential system components. However, it doesn’t include backup generators or equipment that would be needed regardless of having solar. There are no income requirements or application deadlines to worry about—the exemption automatically applies when your solar system is installed and assessed by your local property appraiser.

Florida’s Sales Tax Exemption eliminates the state’s sales tax (currently 6% plus any local taxes) on solar energy systems and all their components. This means when you purchase solar panels, inverters, batteries, mounting equipment, and other necessary hardware for your solar installation, you won’t pay any Florida sales tax on these items. The exemption applies to both purchased and leased solar equipment, making your upfront investment more affordable.

To qualify, the equipment must be used exclusively as part of a solar energy system—meaning equipment designed to collect, transfer, convert, store, or use solar energy for purposes like electricity generation, water heating, or space heating and cooling. The exemption covers a comprehensive list of components including solar panels (photovoltaic modules), inverters, batteries, wiring specific to the solar system, mounting hardware, and even pool blankets used as passive solar collectors. Your solar installer will handle the documentation by having you certify that the purchased equipment is for exclusive use in a solar energy system.

There are no deadlines or expiration dates for this exemption—it’s an ongoing benefit available to all Florida homeowners installing solar. However, keep in mind that standard household wiring that would exist regardless of your solar system doesn’t qualify for the exemption. Your solar provider will automatically apply this tax exemption at the time of purchase, reducing your overall system cost without requiring any additional paperwork or applications on your part.

Net metering in Florida allows homeowners with solar panels to receive credits for excess electricity their system sends back to the grid. When your solar panels produce more energy than your home uses, that surplus power flows to the utility grid, and you receive credits on your electric bill. These credits offset the cost of electricity you draw from the grid when your panels aren’t producing enough power, such as at night or on cloudy days.

The specific benefits vary significantly by utility company. Most major Florida utilities—including Florida Power & Light (FPL), Duke Energy, Tampa Electric (TECO), and Orlando Utilities Commission (OUC)—offer 1:1 net metering, meaning you receive full retail rate credits for the energy you export. However, some utilities like FPL and Duke Energy charge minimum monthly bills of $25-$30 that went into effect in 2022. Other utilities, such as Kissimmee Utility Authority and Gainesville Regional Utility, use net billing instead, crediting exports at reduced rates ranging from approximately 3.5 to 9 cents per kilowatt-hour rather than the full retail rate.

Most Florida utilities allow you to carry excess credits forward month-to-month throughout the year. At the end of the annual period (typically December), any remaining credits are either paid out or reset to zero. The payout rate for these year-end credits varies widely—some utilities like City of Winter Park pay the full retail rate, while others pay only the avoided cost of power, which can be as low as 1.5 to 3 cents per kilowatt-hour. A few utilities, like City of Tallahassee, allow credits to roll over indefinitely with no annual reset.

To participate in net metering, you’ll need to install a solar energy system and complete your utility’s interconnection application process. System size limits and specific program requirements vary by utility provider. It’s important to understand your specific utility’s net metering policy before installing solar, as the financial benefits can differ substantially. Some utilities have also changed their policies in recent years, with newer solar customers receiving less favorable terms than those who interconnected earlier, so timing can impact your long-term savings.