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. Under this state law, the added value that solar installations bring to your home is completely exempt from property tax assessment for residential properties. This means you can enjoy the increased home value from your solar system without paying higher property taxes on that improvement.

For residential properties, 100% of the added value from renewable energy devices is exempt from property tax assessment. The exemption covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and all integral components of the renewable energy system. To qualify, the renewable energy equipment must have been installed on or after January 1, 2013 for residential properties. The exemption is currently set to expire on December 31, 2037, after which it will revert to covering only residential properties (commercial properties will lose their partial exemption).

This exemption applies automatically once your renewable energy system is installed and operational – no separate application is required. The benefit continues for as long as you own the system and remains in place if you sell your home. It’s important to note that conventional backup systems and equipment that would be needed regardless of the renewable energy system don’t qualify for the exemption.

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 and solar-powered attic fans.

To qualify, the equipment must be used exclusively in a solar energy system for applications like water heating, space heating and cooling, or electricity generation. Your solar installer will typically handle the exemption documentation by having you sign a certification form stating the equipment is for solar use only. There are no income limits, deadlines, or time restrictions – the exemption is available indefinitely for all qualifying solar purchases 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 benefits vary significantly depending on which utility company serves your area.

Most major Florida utilities like Florida Power & Light (FPL), Duke Energy, and Tampa Electric offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar production that can be carried over month to month. However, these credits are typically “trued-up” annually in December at much lower wholesale rates (around 1.5-3 cents per kWh), with your account reset to zero. Some utilities have also implemented minimum monthly bills ranging from $25-30. A few utilities like Kissimmee Utility Authority and some cooperatives offer net billing instead, where excess energy is immediately credited at lower export rates of 3-9 cents per kWh.

The financial benefit depends heavily on your utility company and can significantly impact your solar savings. Some utilities like Clay Electric Cooperative have recently changed their policies to be less favorable for new solar customers, while others like the City of Tallahassee allow credits to roll over indefinitely. It’s essential to understand your specific utility’s net metering policy before installing solar, as this will directly affect your system’s payback period and long-term savings potential.