Port Charlotte, 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 is automatic—once your solar system is installed, the added value is simply excluded when your property is assessed, providing ongoing savings for as long as you own your home.

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 energy applications.

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. The exemption covers a comprehensive list of equipment certified by the Florida Solar Energy Center, including photovoltaic modules, inverters, batteries, charge controllers, mounting brackets, wiring specific to the solar system, and even pool blankets used as passive solar collectors. There are no income requirements or system size limitations—any Florida resident purchasing qualifying solar equipment automatically receives this benefit at the point of sale.

To claim this exemption, you’ll need to provide documentation to your solar installer or equipment seller certifying that the purchased equipment will be used exclusively in a solar energy system. Your installer should handle this paperwork as part of the standard sales process. Keep in mind that standard household wiring and structural components that would exist regardless of the solar system (like your roof itself) don’t qualify for the exemption. There are no application deadlines or expiration dates—this exemption remains available as long as Florida law maintains it.

Net metering in Florida allows homeowners with solar panels to receive credits for excess electricity their system produces and sends back to the grid. When your solar panels generate more power than your home uses, that extra energy 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 full retail rate credits for excess energy during the billing cycle. However, some utilities like Kissimmee Utility Authority, Jacksonville Electric Utility (JEA), and Gainesville Regional Utility use net billing instead, crediting exports at lower wholesale rates (typically 3-9 cents per kWh rather than the full retail rate). It’s important to note that FPL and Duke Energy customers pay a minimum monthly bill ($25-$30) regardless of solar production, and some utilities like Lakeland Electric require customers to switch to demand-based pricing plans.

Most Florida utilities allow unused credits to roll over month-to-month throughout the year. At the end of the annual period (typically December), any remaining excess credits are either paid out or reset to zero. The payout rate for these year-end credits varies widely—some utilities like City of Winter Park pay the full retail rate, while most others compensate at much lower avoided-cost rates (around 1.5-3 cents per kWh). Homeowners should check with their specific utility provider to understand their exact net metering terms, as policies differ considerably across Florida’s diverse utility landscape.