Solar Guide

Florida’s Property Tax Exemption for renewable energy systems protects homeowners from paying higher property taxes when they install solar panels or other qualifying renewable energy equipment. Under this state law, the added value that solar panels bring to your home is completely excluded from your property tax assessment if you use your home for residential purposes.

This means you get 100% protection from property tax increases on the value added by your solar system. For example, if solar panels add $20,000 to your home’s value, you won’t pay any additional property taxes on that $20,000. The exemption applies to solar panels, inverters, storage systems, and other qualifying renewable energy equipment installed on your property.

To qualify, your renewable energy system must be installed on residential property that you use as your home. The system must be installed on or after January 1, 2013, and can be added to both new and existing homes. The exemption continues for as long as you own the system and use your property for residential purposes. This incentive is set to expire on December 31, 2037, after which the law will revert to its original 2017 version.

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 household wiring and structural components like roofing are not covered – only equipment that’s unique to the solar system qualifies. 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 reduce your future electric bills. The specific terms and credit values vary significantly depending on which utility company serves your area.

Most Florida utilities offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar energy during the billing period. However, some utilities like Kissimmee Utility Authority and Sumter Electric Co-op provide export credits at reduced rates of 8-9.5 cents per kWh. Several major utilities including Florida Power & Light, Duke Energy, and FPL North have implemented minimum monthly bills ranging from $25-30 that went into effect in 2022.

At the end of each year (usually December), most utilities conduct an annual “true-up” where any remaining excess credits are either paid out or reset to zero. The payout rates for these year-end credits are typically much lower than retail rates – often just 1.5-3 cents per kWh based on the utility’s avoided cost of power. Some utilities like City of Tallahassee and Lakeland Electric allow credits to roll over indefinitely without annual true-ups.

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 a less favorable net billing structure for new customers after May 1, 2022. Homeowners should check with their specific utility company for current rates, minimum bills, and interconnection requirements, as Florida’s net metering landscape varies considerably by service territory.