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 tax assessment. The exemption covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and other essential components of your renewable energy system. The law applies to renewable energy devices installed on or after January 1, 2013, for residential properties, and the current version of this exemption is set to expire on December 31, 2037. After that date, the exemption will continue but may be modified. This incentive works automatically once your solar system is installed – you don’t need to apply separately, as your local property appraiser will exclude the renewable energy equipment value when assessing your property taxes.

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% Florida sales tax when purchasing solar panels, inverters, batteries, mounting equipment, and other qualifying solar system parts. The exemption applies to both solar electric (photovoltaic) systems and solar thermal systems used for water heating, space heating, cooling, and other energy applications.

The financial benefit varies based on your system size and cost, but can result in significant savings. For example, on a $20,000 solar system, you would save approximately $1,200 in sales tax. The exemption covers a comprehensive list of equipment including solar panels, inverters, batteries, mounting hardware, wiring, pumps, controllers, and storage components. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents purchasing qualifying solar equipment. However, the exemption only applies to equipment that is specifically part of the solar energy system, not general electrical wiring or structural components that would exist 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 occur in December where excess credits are paid out at much lower wholesale rates (1.5-3 cents per kWh). Some smaller utilities and cooperatives have moved to net billing programs that only credit exports at reduced rates of 3-9 cents per kWh year-round.

The financial benefit depends heavily on your utility provider. With 1:1 net metering utilities, you can potentially eliminate most of your electric bill during sunny months and carry credits forward. However, utilities with net billing or low true-up rates provide significantly less value for excess solar production. It’s important to understand your specific utility’s policies, as some like Clay Electric Cooperative have recently changed from favorable net metering to less beneficial net billing for new solar customers.