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 improvement.

For residential properties, 100% of the added value from renewable energy devices is exempt from property tax assessment. The exemption covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and all integral components of the renewable energy system. To qualify, the renewable energy equipment must have been 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. This incentive applies automatically once your renewable energy system is installed – no separate application is required, making it a straightforward way to maximize your solar investment’s financial benefits.

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 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, and even accessories like pool solar blankets when used as part of a solar system.

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. There are no income requirements or system size limitations, and the exemption has no expiration date. However, sellers must document exempt sales, typically requiring purchasers to sign a certification form stating the equipment will be used exclusively for solar energy purposes. Note that some items like standard AC wiring throughout your home or novelty solar items 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 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, these credits are typically “trued up” annually in December at much lower wholesale rates (around 1.5-3 cents per kWh), with your account reset to zero. Some utilities have added minimum monthly bills ranging from $25-30. A few utilities like Kissimmee Utility Authority and some cooperatives use net billing instead, crediting exports at lower rates (3-9.5 cents per kWh) but allowing more flexibility with payouts.

Eligibility generally requires installing an approved solar system and completing your utility’s interconnection process. There are no statewide deadlines, but some utilities have changed their policies recently – for example, Clay Electric Cooperative switched to less favorable net billing for new customers after May 2022. It’s important to understand your specific utility’s current net metering policy before installing solar, as the financial benefits can vary dramatically between different service territories in Florida.