Davenport, 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 for tax purposes. 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 system components. However, it doesn’t include backup generators or equipment that would be needed regardless of the solar installation. There are no income requirements or application deadlines—the exemption automatically applies when your solar system is installed and remains in effect as long as you own the home.

Florida’s Sales Tax Exemption eliminates the state’s sales tax on solar energy systems and all their components. When you purchase a solar system in Florida, you won’t pay the standard 6% state sales tax (plus any local sales tax) on the equipment and hardware. This includes solar panels, inverters, batteries, mounting equipment, wiring, and all other components that make up your solar energy system. For a typical residential solar installation costing $25,000, this exemption saves you approximately $1,500 or more in sales tax.

This exemption is available to all Florida residents and businesses purchasing solar energy systems for water heating, space heating and cooling, electricity generation, or other applications that would otherwise use conventional energy sources. There are no income requirements, application deadlines, or time limitations—the exemption is ongoing and applies automatically at the point of sale. Your solar installer should handle the documentation by having you sign a simple certification form confirming the equipment will be used exclusively in a solar energy system.

It’s important to note that this exemption covers equipment that is part of the solar system itself, but not general household wiring or structural components that would exist regardless of the solar installation. The exemption applies whether you purchase or lease your system, making solar more affordable for Florida homeowners choosing either financing option.

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 power 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, OUC, and several others—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 throughout the year. However, during an annual true-up (usually in December or January), any remaining excess credits are paid out at a much lower wholesale rate, typically between 1.5 to 3 cents per kWh, and your account resets to zero. Some utilities like FPL and Duke Energy also charge minimum monthly bills of $25-$30.

A few Florida utilities operate under net billing instead of traditional net metering. Utilities like Kissimmee Utility Authority, Sumter Electric Co-op, Gainesville Regional Utility, and Jacksonville Electric Utility credit excess solar energy at reduced rates ranging from approximately 3.5 to 9.5 cents per kWh rather than the full retail rate. Clay Electric Cooperative ended 1:1 net metering for new customers in May 2022, now offering only wholesale rate credits of about 3 cents per kWh.

Net metering is generally available to residential solar customers, though each utility has its own interconnection application process and requirements. Some utilities require customers to switch to specific rate plans—for example, Lakeland Electric requires participants to use a demand pricing plan. There are no statewide deadlines for net metering availability, but policies can change. If you’re considering solar, it’s important to understand your specific utility’s current net metering policy, as the financial benefits can vary significantly depending on whether you receive full retail credits or reduced export rates.