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. This state tax exemption ensures that the added value from your solar installation won’t be included when calculating your annual property tax bill, providing ongoing savings for years to come.

For residential properties, 100% of the value added by renewable energy equipment is exempt from property tax assessment. For commercial properties, 80% of the added value is exempt. The exemption applies to solar panels, inverters, storage systems, mounting equipment, and other qualifying renewable energy components installed on your property.

To qualify, your renewable energy system must be installed on or after January 1, 2013 for residential properties. The equipment must meet the state’s definition of renewable energy source devices, which includes solar, wind, and geothermal systems. This exemption is currently set to expire on December 31, 2037, after which only residential properties will continue to receive the full exemption. There are no income restrictions or application deadlines, making this benefit accessible to all Florida homeowners who install qualifying renewable energy systems.

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. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents installing qualifying solar energy systems.

To claim this exemption, you’ll need to provide documentation to your solar installer certifying that the equipment is being used exclusively for a solar energy system. Your installer should handle this process, but it’s important to ensure they apply the exemption at the time of purchase. Keep in mind that standard household wiring and structural components like roofing are not eligible for the exemption – only equipment that is unique to the solar system qualifies.

Net metering in Florida allows homeowners with solar panels to receive credits on their electric bill for excess energy their system sends back to the grid. When your solar panels produce more electricity than your home uses, that extra power flows to the utility grid and you earn credits that reduce your future electric bills. Most Florida utilities offer 1:1 net metering, meaning you receive full retail rate credit for each kilowatt-hour (kWh) of solar energy you export.

The financial benefits vary significantly depending on your utility company. With 1:1 net metering utilities like Orlando Utility Commission and City of Winter Park, you receive full retail rate credits (typically 10-15 cents per kWh) that can carry over month to month. However, some utilities have introduced minimum monthly bills ranging from $25-30, and most utilities “true-up” excess credits annually in December at much lower wholesale rates (around 1.5-3 cents per kWh). Other utilities like Kissimmee Utility Authority and Sumter Electric Co-op offer net billing instead, crediting exports at reduced rates of 8-9.5 cents per kWh but allowing more favorable year-end treatment of unused credits.

Net metering is generally available to residential customers who install qualifying solar energy systems, though specific eligibility requirements and system size limits vary by utility. Some utilities have switched to less favorable net billing programs for new customers, while grandfathering existing net metering customers for 15+ years. It’s important to understand your specific utility’s policies, as the financial benefits can differ substantially – some utilities offer indefinite credit rollovers while others reset your account to zero each December after paying out excess credits at wholesale rates.