Ocala, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels or other qualifying equipment won’t increase your property taxes. When you add a solar energy system to your home, the property appraiser excludes 100% of the added value from your property’s assessed value for tax purposes. This means you get all the benefits of a valuable home improvement without paying higher property taxes on that investment.

For residential properties, the exemption applies to solar equipment installed on or after January 1, 2013, and continues through December 31, 2037. The exemption covers solar panels, inverters, batteries, mounting equipment, and other essential system components. However, it doesn’t include backup generators or equipment that would be needed regardless of the solar installation. This exemption automatically applies when your property is assessed—you simply need to have your renewable energy system installed and operational on your property.

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 other solar applications that reduce your reliance on conventional energy sources.

The financial benefit depends on your total system cost. For example, on a typical $30,000 solar installation, this exemption saves you approximately $1,800 in state sales tax. On a $50,000 system, you’d save around $3,000. There are no income requirements or system size limitations—any homeowner purchasing qualifying solar equipment in Florida automatically receives this exemption at the point of sale. The exemption covers everything from the solar panels and inverters to batteries, charge controllers, mounting brackets, and even pool blankets used as passive solar collectors.

To claim this exemption, you’ll need to provide documentation to your solar installer or equipment seller certifying that the equipment will be used exclusively in a solar energy system. Your installer should handle this paperwork as part of your purchase. There are no application deadlines or expiration dates—this exemption is an ongoing benefit under Florida law. Keep in mind that standard household wiring that would exist regardless of your solar system doesn’t qualify for the exemption, and novelty solar items where the solar component cost isn’t separated from the total product cost are also excluded.

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 surplus electricity 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 Florida utilities offer 1:1 net metering, meaning you receive a credit equal to the full retail rate for each kilowatt-hour (kWh) you send to the grid. These credits typically roll over month to month and are settled annually in December or January. However, the annual settlement rate varies widely—some utilities like Orlando Utility Commission and City of Winter Park pay out remaining credits at the full retail rate, while others like Florida Power & Light, Tampa Electric, and Duke Energy settle at much lower rates (around 1.5 to 3 cents per kWh). A few utilities, including Kissimmee Utility Authority, Gainesville Regional Utility, and Jacksonville Electric Utility, use net billing instead, crediting exports at reduced rates ranging from about 3.5 to 9.5 cents per kWh.

Important considerations include minimum monthly bills that some utilities have implemented—Florida Power & Light charges $25 per month, Duke Energy charges $30 per month, and other utilities have smaller fees or demand charges. Some utilities like Lakeland Electric require customers to switch to a demand pricing plan, which can add $10-25 per month in demand charges. Clay Electric Cooperative has largely phased out favorable net metering for new customers as of May 2022. Net metering is generally available to residential solar customers, though specific system size limits and interconnection requirements vary by utility. Homeowners should confirm their utility’s current policy, as these programs can change over time.