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. This state tax exemption ensures that the added value from your solar installation won’t be considered when calculating your annual property tax bill, providing ongoing savings for years to come.

For residential properties, 100% of the added property value from renewable energy systems is exempt from property tax assessment. For commercial properties, 80% of the added value is exempt. The exemption applies to solar panels, inverters, storage systems, wind turbines, geothermal equipment, and all necessary components like wiring and structural supports. However, it doesn’t cover backup systems or equipment that would be needed regardless of the renewable energy installation.

To qualify, your renewable energy system must be installed on or after January 1, 2013 for residential properties, or January 1, 2018 for commercial properties. The exemption is set to expire on December 31, 2037, after which only residential properties will continue to receive the benefit. There are no application deadlines, but the system must be properly installed and operational to receive the exemption on your property tax assessment.

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. To claim this exemption, your solar installer will typically handle the documentation by having you sign a certification form stating the equipment is for exclusive use in a solar energy system.

There are no income limits, system size restrictions, or application deadlines for this exemption – it’s available to all Florida residents installing qualifying solar equipment. However, the exemption only applies to equipment that’s specifically part of the solar energy system, not general electrical work or structural modifications that would be needed regardless of the solar installation.

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 benefits vary significantly depending on which utility company serves your area.

Most major Florida utilities like Florida Power & Light (FPL), Duke Energy, and Tampa Electric offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-12 cents per kWh) for excess solar production. However, some utilities have implemented minimum monthly bills ranging from $25-30, and annual true-ups in December where unused credits are paid out at much lower wholesale rates (1.5-3 cents per kWh). Other utilities like Kissimmee Utility Authority and some cooperatives use net billing systems that immediately credit exports at reduced rates of 3-9 cents per kWh.

Important considerations include understanding your specific utility’s policies, as some have recently changed from favorable 1:1 net metering to less beneficial net billing structures. Additionally, the December annual true-up means any accumulated credits are typically paid out at wholesale rates and your account resets to zero, so timing your solar installation and energy usage patterns can impact your savings. Homeowners should verify current policies with their utility provider, as net metering rules continue to evolve across Florida’s diverse utility landscape.