Solar Guide

Florida’s Property Tax Exemption for renewable energy systems allows homeowners to install solar panels and other renewable energy equipment without increasing their property taxes. This state tax exemption ensures that the added value from your solar installation won’t be factored into your property’s assessed value for tax purposes.

For residential properties, 100% of the value added by renewable energy equipment is exempt from property tax assessment. For non-residential properties, 80% of the added value is exempt. This means homeowners can enjoy the full benefits of their solar investment without worrying about higher property tax bills. The exemption covers solar panels, inverters, storage systems, mounting equipment, and other essential components of renewable energy systems.

To qualify, the renewable energy equipment must be installed on or after January 1, 2013 for residential properties. The exemption applies to both new construction and existing homes where solar systems are added. Currently, this benefit is set to continue through December 31, 2037, after which the exemption will revert to residential properties only. This long-term incentive provides Florida homeowners with significant property tax savings that can help offset the initial cost of going solar.

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% Florida 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 solar electric (photovoltaic) systems and solar thermal systems used for water heating, space heating, cooling, and other energy applications.

To qualify for this exemption, the equipment must be part of a solar energy system that collects, transfers, converts, stores, or uses solar energy as an alternative to conventional energy sources like electricity or natural gas. The Florida Solar Energy Center maintains a detailed list of eligible components, including solar panels, inverters, batteries, mounting hardware, wiring, and accessories that are integral to the solar system. Purchasers must provide documentation to sellers certifying that the equipment will be used exclusively in a solar energy system. There are no income requirements, deadlines, or time limitations for this exemption – it’s an ongoing benefit available to all solar system purchasers in Florida.

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 10-12 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.

Credits typically roll over month-to-month throughout the year, but most utilities conduct an annual “true-up” in December where any remaining excess credits are either paid out at reduced wholesale rates (often 1.5-3 cents per kWh) or forfeited entirely. Notable exceptions include City of Tallahassee and Lakeland Electric, where credits roll over indefinitely. Homeowners should understand their specific utility’s net metering policy, as the financial benefits can vary dramatically – from full retail credit value to significantly reduced wholesale rates for excess generation.