Solar Guide

Florida’s Property Tax Exemption for renewable energy systems helps homeowners save money on their property taxes when they install solar panels or other qualifying renewable energy equipment. Under this state law, the added value that solar equipment brings to your home is either partially or completely exempt from property tax assessment, meaning you won’t pay higher property taxes simply because your home is now worth more due to your solar installation.

For residential properties, homeowners receive a 100% exemption on the added property value from renewable energy systems. For non-residential properties, the exemption covers 80% of the added value. The law covers a wide range of equipment including solar panels, inverters, storage systems, wind turbines, and geothermal systems, along with all necessary components like wiring and structural supports. However, it doesn’t include backup systems or equipment that connects to the utility grid.

To qualify, renewable energy systems must have been installed on or after January 1, 2013 for residential properties, or January 1, 2018 for non-residential properties. The current enhanced exemption rates are set to expire on December 31, 2037, after which residential properties will still receive exemptions but non-residential properties will lose their 80% benefit. This exemption automatically applies when your property is assessed, so there’s typically no separate application process required beyond normal property tax procedures.

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% Florida 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 typically saves homeowners hundreds to thousands of dollars. For example, on a $20,000 solar system, you could save around $1,200 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. To claim this exemption, your solar installer will need documentation certifying that the equipment is exclusively for solar energy use. There are no income requirements, deadlines, or time limitations – this exemption is available to all Florida residents installing qualifying solar energy systems.

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. The specific terms and benefits vary significantly depending on which utility company serves your area.

Most Florida utilities offer 1:1 net metering, meaning you receive full retail rate credit (typically 10-15 cents per kWh) for excess solar energy during the month it’s produced. However, some utilities like Kissimmee Utility Authority and Sumter Electric Co-op offer net billing instead, crediting exports at lower rates of 8-9.5 cents per kWh. Important considerations include monthly minimum bills ranging from $25-30 that some utilities like FPL and Duke Energy implemented in 2022, and annual “true-up” periods (usually in December) when unused credits are either paid out at much lower wholesale rates (1.5-3 cents per kWh) or forfeited entirely.

Eligibility typically requires installing an approved solar system and completing your utility’s interconnection process. There are generally no income requirements or application deadlines, but some utilities have changed their policies recently – for example, Clay Electric Cooperative switched to less favorable net billing for new customers after May 1, 2022. Homeowners should carefully review their specific utility’s net metering terms, as the financial benefits can vary dramatically between providers, and some utilities are transitioning away from traditional 1:1 net metering to less generous export credit programs.