Fort Myers, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that adding solar panels or other qualifying renewable energy equipment to your home won’t increase your property taxes. When your county property appraiser determines your home’s assessed value, they must exclude the added value from your solar installation. For residential properties, 100% of the solar system’s value is exempt from property tax assessment. For commercial and non-residential properties, 80% of the system’s value is exempt.

To qualify for this exemption, your renewable energy system must be 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 components that are part of your system. This benefit currently runs through December 31, 2037. The exemption applies automatically when your property is assessed—you don’t pay taxes on the increased home value that your solar system creates, which can result in significant savings over the life of your system.

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 sales tax) on items like solar panels, inverters, batteries, mounting hardware, wiring, and other essential system components. This exemption applies whether you’re installing a solar electric system, solar water heating, or solar pool heating.

The financial benefit depends on your total system cost. For example, on a $30,000 solar installation, you would save approximately $1,800 in state sales tax. On a $50,000 system, the savings would be around $3,000. The exemption covers everything from the solar panels themselves to the smaller components like bolts, wiring, and mounting brackets that are integral to your system. There are no income requirements or system size limitations—any Florida homeowner purchasing qualifying solar equipment automatically receives this exemption at the point of sale.

To claim this benefit, you’ll need to provide documentation to your solar installer confirming that the equipment will be used exclusively in a solar energy system. Your installer should handle this process and apply the exemption directly to your purchase. There are no application deadlines or expiration dates for this exemption—it remains available as long as Florida law continues to authorize it. Keep in mind that standard household wiring that would exist regardless of your solar system doesn’t qualify for the exemption, and the benefit only applies to equipment that’s separately itemized as solar components.

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 extra 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 significantly by utility company. Most major utilities in Florida—including Florida Power & Light (FPL), Duke Energy, Tampa Electric (TECO), and Orlando Utilities Commission (OUC)—offer 1:1 net metering, meaning you receive full retail rate credits for excess energy throughout the year. However, these utilities typically conduct an annual “true-up” in December or January, where any remaining excess credits are paid out at a much lower wholesale rate (typically 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 utilities, such as Kissimmee Utility Authority and Gainesville Regional Utility, use net billing instead, crediting exports at reduced rates of 3.5 to 9 cents per kWh from the start.

Net metering is generally available to residential customers who install solar panels and complete their utility’s interconnection process. There are no application deadlines, though policies can change—Clay Electric Cooperative, for example, ended 1:1 net metering for new customers in May 2022. It’s important to understand your specific utility’s policy before installing solar, as the financial benefits can vary considerably. Some utilities also place customers on special rate plans with demand charges or higher customer fees, which can affect your overall savings.