Bradenton, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels won’t increase your property taxes. When you add a solar energy system to your home, the property appraiser cannot include the added value of that system when calculating your property’s assessed value. This means you get all the benefits of solar—including increased home value—without paying higher property taxes on that improvement.

For residential properties, 100% of the solar system’s value is exempt from property tax assessment. For commercial or non-residential properties, 80% of the system’s value is exempt. The exemption applies to all solar equipment including panels, inverters, batteries, wiring, and mounting systems. However, it doesn’t cover backup generators or equipment that would have been installed anyway without solar.

To qualify, your solar system must be installed on or after January 1, 2013 for residential properties, or on or after January 1, 2018 for non-residential properties. The exemption is currently set to expire on December 31, 2037, after which only residential properties will continue to receive the benefit. There’s no application process—the exemption is automatically applied during your property’s assessment, making it a simple way to maximize your solar investment’s value.

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 essential system parts, you won’t pay any Florida sales tax on these items. The exemption applies to both residential and commercial solar installations, covering everything from the solar collectors and photovoltaic modules to the wiring, controllers, storage batteries, and structural mounting hardware that are integral to your system.

To qualify for this exemption, the equipment must be used exclusively as part of a solar energy system that collects, transfers, converts, stores, or uses solar energy for purposes like electricity generation, water heating, or space heating and cooling. Your solar installer will typically handle the documentation by having you sign a certification form confirming that the purchased equipment will be used exclusively in a solar energy system. There are no deadlines or expiration dates for this exemption—it remains available as an ongoing benefit for Florida solar customers.

It’s important to note that this exemption covers the direct current wiring unique to your solar system, but not the standard alternating current wiring throughout your home that would exist regardless of the solar installation. The exemption applies at the point of purchase, so you’ll see the savings immediately rather than claiming them later through a tax filing. This benefit works alongside other solar incentives to reduce your upfront investment in clean energy.

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 utilities in Florida—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 ($25-$30) regardless of your solar production. Credits typically roll over month to month, but any remaining credits at year-end are usually paid out at much lower wholesale rates (around 1.5 to 3 cents per kWh) rather than the retail rate, with your account resetting to zero.

Some Florida utilities have moved away from traditional net metering to net billing programs with lower export credit rates. For example, Kissimmee Utility Authority credits exports at approximately 8-9 cents per kWh, while Jacksonville Electric Utility’s rate averages around 3-8 cents per kWh depending on monthly fuel costs. Clay Electric Cooperative ended 1:1 net metering for new customers in May 2022, now offering only wholesale rate credits of about 3 cents per kWh. It’s important to understand your specific utility’s policy, as the financial benefits of solar can vary considerably based on how your excess energy is valued and whether minimum monthly charges apply.