Solar Guide

Florida’s Property Tax Exemption for renewable energy systems protects homeowners from paying higher property taxes when they install solar panels or other qualifying renewable energy equipment. Under this state law, the added value that solar panels bring to your home is completely excluded from your property tax assessment if you use your home for residential purposes.

This means you get 100% protection from property tax increases on the value added by your solar system – there’s no dollar limit on this benefit. For example, if your solar installation adds $20,000 to your home’s value, that entire amount won’t be considered when calculating your property taxes. The exemption applies to solar panels, inverters, batteries, and other essential system components, but doesn’t cover backup systems or equipment that would be needed anyway.

To qualify, your renewable energy system must be installed on or after January 1, 2013, and your property must be used for residential purposes. The exemption is automatic once your system is installed – you don’t need to apply separately. This benefit continues for as long as you own the system and remains in effect until December 31, 2037, when the law is set to expire unless renewed by the state legislature.

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 used exclusively in solar energy systems.

The financial benefit varies based on your system size and local tax rates, but can save homeowners hundreds to thousands of dollars on their solar installation. 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, pumps, controllers, and even pool solar heating systems and solar attic fans.

To qualify, the equipment must be used exclusively in a solar energy system for applications like water heating, space heating and cooling, or electricity generation. Sellers are required to document exempt sales, typically through a certification form signed by the purchaser. There are no income limits, system size restrictions, or application deadlines – the exemption is available indefinitely for all qualifying solar installations. However, general household wiring and structural components that would exist without the solar system don’t qualify for the exemption.

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 export credits at reduced rates of 8-9.5 cents per kWh. Several major utilities including Florida Power & Light, Duke Energy, and FPL North have implemented minimum monthly bills ranging from $25-30 that went into effect in 2022. At the end of each year (usually December), most utilities conduct an annual “true-up” where any remaining excess credits are either paid out at much lower wholesale rates (typically 1.5-5 cents per kWh) or forfeited, with your account reset to zero.

Eligibility typically requires installing an approved solar system and completing your utility’s interconnection process. Some utilities like Clay Electric Cooperative have changed their policies for new customers, offering less favorable net billing rates for systems installed after certain dates. Homeowners should carefully review their specific utility’s net metering policy, as the financial benefits can vary dramatically – from excellent 1:1 credit programs to less attractive export credit arrangements that may not provide sufficient savings to justify solar installation.