Punta Gorda, 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. This means you get all the benefits of solar—including increased home value—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 having solar. This exemption is automatic when your system is installed—you don’t need to apply separately, though your county property appraiser will assess your property accordingly. It’s important to note that this benefit currently has a sunset date of December 31, 2037, after which the law may change.

Florida’s Sales Tax Exemption eliminates the state’s sales tax (currently 6% plus any local taxes) on solar energy systems and all their components. This means when you purchase solar panels, inverters, batteries, mounting equipment, and other essential system parts, you won’t pay any Florida sales tax on these items. The exemption applies to both complete solar installations and individual components, whether you’re buying or leasing the equipment.

To qualify, the equipment must be used exclusively as part of a solar energy system that collects, transfers, converts, stores, or uses solar energy for purposes like electricity generation, water heating, or space heating and cooling. The exemption covers a comprehensive list of components including solar panels (photovoltaic modules), inverters, batteries, charge controllers, mounting hardware, wiring specific to the solar system, and even pool blankets when used as passive solar collectors. Your solar installer will handle the documentation by having you certify that the purchased equipment is for exclusive use in a solar energy system.

There are no deadlines or expiration dates for this exemption—it remains available as long as the Florida statute is in effect. One important consideration: the exemption only applies to equipment that’s specifically part of your solar system. Standard electrical wiring throughout your home that would exist regardless of the solar installation doesn’t qualify. The tax savings are automatically applied at the time of purchase, so you’ll see the benefit immediately rather than waiting to claim it later.

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 by utility company. Most major utilities in Florida—including Florida Power & Light (FPL), Duke Energy, Tampa Electric (TECO), and Orlando Utility 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, Gainesville Regional Utility, and Jacksonville Electric 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 face minimum monthly bills of $25-30 that went into effect in 2022, and some utilities like Lakeland Electric require customers to switch to demand-based pricing plans.

Most Florida utilities allow excess credits to roll over month-to-month throughout the year. At the end of the annual cycle (typically December), remaining credits are either paid out or reset to zero. The payout rate for these year-end credits varies widely—from full retail rate at some municipal utilities like City of Winter Park, to wholesale rates of 1.5-3 cents per kWh at others. Eligibility is generally available to residential customers who install solar panels and complete their utility’s interconnection process. There are no statewide deadlines, though individual utility policies can change, as seen with Clay Electric Cooperative’s shift away from 1:1 net metering in 2022.