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. Under this state law, the added value that solar installations bring to your home is completely exempt from property tax assessment for residential properties. This means you can enjoy the increased home value from your solar system without paying higher property taxes on that added value.

For residential properties, 100% of the added value from renewable energy systems is exempt from property taxes. The exemption covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and all necessary components that are integral to the system. To qualify, the renewable energy equipment must be installed on or after January 1, 2013 for residential properties. The exemption is currently set to expire on December 31, 2037, after which it will revert to residential-only coverage unless renewed by the legislature.

This exemption applies automatically once your solar system is installed and assessed – no separate application is required. The benefit continues for as long as you own the system and remains in place. It’s important to note that conventional backup systems and equipment that would be needed regardless of the solar installation don’t qualify for the exemption.

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 pool solar heating systems. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents installing qualifying solar energy systems.

To claim this exemption, you’ll need to provide documentation to your solar installer certifying that the equipment is being used exclusively for a solar energy system. Keep in mind that standard electrical wiring throughout your home and structural roof components don’t qualify for the exemption – only the solar-specific equipment and components are eligible. This exemption works automatically at the point of sale, so you’ll see the savings immediately when purchasing your system.

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

Most major Florida utilities like FPL, Duke Energy, and TECO offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar production that can roll over month to month. However, some utilities have introduced minimum monthly bills ranging from $25-30. At the end of each year (usually December), any remaining credits are typically paid out at much lower wholesale rates of 1.5-3 cents per kWh, and your account resets to zero. Some smaller utilities and cooperatives have moved to net billing programs that only credit excess solar at lower export rates of 3-9 cents per kWh rather than full retail rates.

Important considerations include that some utilities like Lakeland Electric require customers to switch to demand-based rate plans, while others like Clay Electric Cooperative have grandfathered existing solar customers under better terms until 2037. There are no statewide eligibility restrictions, but each utility has its own interconnection requirements and application processes. Homeowners should carefully review their specific utility’s current net metering policy, as several Florida utilities have recently modified their programs to be less favorable for new solar customers.