Cape Coral, 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. 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 components that are part of your solar system. However, it doesn’t include backup generators or equipment that would be needed regardless of whether you have solar.

There’s no application deadline to worry about—as long as your system is installed before the program expires at the end of 2037, you’ll receive this benefit automatically through your property tax assessment. This exemption works alongside other solar incentives and remains in effect for as long as you own the system, helping make solar energy more affordable by eliminating the property tax increase that would normally come with such a valuable home upgrade.

Florida’s Sales Tax Exemption eliminates the state’s sales tax on solar energy systems and all their components. This means when you purchase solar panels, inverters, batteries, mounting equipment, and other essential parts of your solar system, you won’t pay Florida’s sales tax (typically 6% plus any local discretionary sales tax). For a typical residential solar installation costing $25,000, this exemption saves you approximately $1,500 or more at the time of purchase.

To qualify, the equipment must be part of a solar energy system used for collecting, converting, storing, or using 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, inverters, batteries, mounting hardware, wiring specific to the solar system, charge controllers, and even pool blankets when used as passive solar collectors. Your solar installer should automatically apply this exemption at the point of sale—you’ll simply need to sign a certification form confirming the equipment is for exclusive use in a solar energy system.

There are no deadlines or expiration dates for this exemption, as it’s an ongoing benefit under Florida law. However, it’s important to note that standard electrical wiring throughout your home and certain integrated products where solar components can’t be separated from the total cost (like solar-powered calculators or novelty items) don’t qualify for the exemption. Your solar provider will handle the documentation, making this a straightforward savings that reduces 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 electricity 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 depending on your 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. These credits typically roll over month to month throughout the year. However, some utilities like Kissimmee Utility Authority, Gainesville Regional Utility, and Jacksonville Electric Utility use net billing instead, where exported energy is credited at a lower wholesale rate (ranging from approximately 3 to 9 cents per kilowatt-hour rather than the full retail rate).

At the end of each year—usually in December or January—most utilities conduct an annual “true-up” where any remaining excess credits are settled. The value of these year-end credits varies widely by utility: some pay out at full retail rates, while others compensate at wholesale rates of just 1.5 to 3 cents per kilowatt-hour. It’s important to note that several major utilities (FPL, Duke Energy) have implemented minimum monthly bills ranging from $25 to $30 that apply regardless of your solar production. Additionally, some utilities like Lakeland Electric require solar customers to switch to special rate plans that may include demand charges.

Net metering is generally available to residential customers who install solar panels and complete their utility’s interconnection process. Each utility has its own application requirements and timelines. Because the policies, credit values, and rate structures differ substantially across Florida’s many utility providers, understanding your specific utility’s net metering program is essential when evaluating the financial benefits of going solar.