Palm Bay, 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 more valuable home without paying higher property taxes on that improvement.

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 whether you have solar. There are no income requirements or application fees—the exemption automatically applies when your property is assessed, helping you maximize your solar investment savings.

Florida’s Sales Tax Exemption removes the state’s sales tax from 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 heater, or solar pool heater.

The financial benefit depends on your total system cost. For example, on a typical $30,000 solar installation, you would save approximately $1,800 in state sales tax. The exemption covers a comprehensive list of equipment including photovoltaic modules, inverters, charge controllers, batteries, mounting brackets, wiring specific to the solar system, and even pool blankets when used as passive solar collectors. 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 exemption, you’ll need to provide your solar installer or equipment seller with a signed certification stating that the purchased equipment will be used exclusively in a solar energy system. Your installer should handle this documentation as part of the sales process. 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 and structural components like your roof itself don’t qualify, as these would be present regardless of the solar installation.

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 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 depending on your utility provider. Most major Florida utilities—including Florida Power & Light (FPL), Duke Energy, Tampa Electric (TECO), and Orlando Utilities Commission (OUC)—offer 1:1 net metering, meaning you receive a credit equal to the full retail rate for each kilowatt-hour (kWh) you export. However, some utilities like FPL and Duke Energy charge minimum monthly bills ($25-$30) regardless of your solar production. Credits typically roll over month to month, but at year-end (usually December), any remaining excess credits are “trued up” at a much lower wholesale rate—often just 1.5 to 3 cents per kWh—and your account resets to zero.

Some Florida utilities have moved away from traditional net metering to “net billing” or export credit programs. Utilities like Kissimmee Utility Authority, Gainesville Regional Utility, and Jacksonville Electric Utility credit solar exports at reduced rates (ranging from 3.5 to 9.5 cents per kWh) rather than the full retail rate. Clay Electric Cooperative ended 1:1 net metering for new customers in May 2022, now offering only wholesale rates for exports. A few utilities, like Lakeland Electric, require solar customers to switch to demand-based rate plans that may include additional charges.

Net metering is generally available to residential customers who install solar panels and complete their utility’s interconnection process. There are no statewide deadlines, though individual utilities may modify their programs over time. It’s important to understand your specific utility’s net metering policy before installing solar, as the financial benefits can vary considerably. Some utilities offer more favorable terms than others, and these differences significantly impact your long-term savings and return on investment.