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 solar panels, inverters, storage systems, mounting equipment, and other components that are integral parts of the renewable energy system. To qualify, the renewable energy equipment must be 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. This incentive applies automatically when you install qualifying renewable energy equipment – no separate application is required beyond your normal property tax assessment process.

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 accessories like pool solar blankets. There are no income requirements, system size limits, or application deadlines – the exemption is available to all Florida residents purchasing qualifying solar equipment.

To claim this exemption, your solar installer should handle the paperwork by having you sign a certification form stating the equipment is for exclusive use in a solar energy system. Keep in mind that standard electrical wiring throughout your home and structural roof components don’t qualify for the exemption – only the solar-specific equipment and wiring unique to your solar system are covered.

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 credit values vary significantly depending on which utility company serves your area.

Most Florida utilities offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar energy during the billing period. However, some utilities like Kissimmee Utility Authority and Sumter Electric Co-op provide net billing instead, crediting exports at lower rates of 8-9.5 cents per kWh. Credits generally roll over month to month, but most utilities conduct an annual “true-up” in December where remaining credits are either paid out at much lower wholesale rates (often 1.5-3 cents per kWh) or the account resets to zero. Some utilities have added minimum monthly bills ranging from $25-30 that solar customers must pay regardless of their energy production.

Eligibility typically requires installing an approved solar system and completing your utility’s interconnection process. Important considerations include understanding your specific utility’s policies, as rates and terms differ widely across Florida’s many electric providers. Some utilities like Clay Electric Cooperative have recently changed from favorable net metering to less beneficial net billing for new customers, while others maintain indefinite credit rollovers with no annual reset.