Clermont, 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. To qualify, your solar equipment must have been installed on or after January 1, 2013 for residential properties, or on or after January 1, 2018 for non-residential properties. The exemption covers solar panels, inverters, batteries, mounting equipment, and other essential system components, but does not include backup systems or equipment that would be needed regardless of solar installation.

This exemption is currently set to expire on December 31, 2037, after which the law will revert to its original 2017 version. The exemption applies automatically—you don’t need to file a separate application, though your property appraiser may request documentation of your solar installation. This benefit works alongside your solar savings to make your investment even more financially attractive over the long term.

Florida’s Sales Tax Exemption eliminates the state’s sales tax on solar energy systems and all their components. When you purchase solar equipment in Florida, you won’t pay the standard 6% state sales tax (plus any local taxes) on items like solar panels, inverters, batteries, mounting hardware, wiring, and other essential system components. This exemption applies to both complete solar installations and individual parts, whether you’re buying or leasing the equipment.

The financial benefit depends on your total system cost. For example, on a typical $30,000 solar installation, this exemption saves you approximately $1,800 in sales tax. The savings apply automatically at the point of sale when you purchase eligible solar equipment from a registered seller. There are no income requirements or application processes—the exemption is available to all Florida residents and businesses purchasing qualifying solar energy systems. Your solar installer should document that the equipment is being used exclusively for a solar energy system, but you don’t need to submit any forms to the state yourself.

The exemption covers equipment used for collecting, converting, storing, or using solar energy, including solar water heaters, pool heating systems, and photovoltaic (electricity-generating) systems. However, it’s important to note that the exemption doesn’t apply to standard electrical wiring that would exist in your home regardless of the solar system, or to products where solar components are simply built into other items (like solar-powered calculators or novelty items). There are no deadlines or expiration dates for this exemption—it remains available as long as the current Florida law is in effect.

Net metering in Florida allows homeowners with solar panels to receive credits for the excess electricity their system produces and sends back to the grid. When your solar panels generate more power than your home uses, that extra energy 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 by utility company. Most major Florida utilities—including FPL, Duke Energy, TECO, and OUC—offer 1:1 net metering, meaning you receive a credit equal to the full retail rate for each kilowatt-hour (kWh) you send to the grid. Your credits typically roll over month to month and are settled annually in December. At that time, any remaining excess credits are paid out at a lower rate (usually between 1.5 to 3 cents per kWh, depending on your utility) and your account resets to zero. Some utilities, like FPL and Duke Energy, have implemented minimum monthly bills of $25-$30 that went into effect in 2022.

A few Florida utilities operate under net billing instead of traditional net metering. With net billing, excess energy exported to the grid is credited at a lower rate than the retail price—typically ranging from 3.5 to 9.5 cents per kWh depending on the utility. Utilities using this approach include Kissimmee Utility Authority, JEA, Gainesville Regional Utility, and several electric cooperatives. It’s important to check with your specific utility provider to understand which program applies to your home and how it will impact your savings.

Net metering is generally available to residential solar customers throughout Florida, though each utility has its own interconnection requirements and application process. Some utilities place customers on special rate plans when they install solar, which may include different pricing structures or additional monthly charges. There are no statewide deadlines for net metering availability, but policies can change—for example, Clay Electric Cooperative transitioned from 1:1 net metering to a less favorable net billing structure for new applications starting May 1, 2022. Homeowners should verify current policies with their utility before installing solar to ensure they understand the financial benefits available to them.