Sarasota, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels or other qualifying renewable energy equipment won’t increase your property taxes. When your county property appraiser determines your home’s assessed value, they’re required to exclude the added value from your solar installation. This means you get all the benefits of increased home value without paying higher property taxes on that improvement.

For residential properties, 100% of the added value from your renewable energy system is exempt from property tax assessment. For commercial or nonresidential properties, 80% of the added value is exempt. The exemption applies to solar panels, inverters, batteries, mounting equipment, and other essential system components. However, it doesn’t cover backup generators or equipment that would be needed regardless of whether you have solar.

To qualify, your renewable energy system must have been installed on or after January 1, 2013 for residential properties, or January 1, 2018 for nonresidential properties. The exemption is currently set to expire on December 31, 2037, after which only residential properties will continue to receive the benefit. There’s no application process needed—your property appraiser automatically applies this exemption when assessing your property value, providing ongoing savings for as long as you own your home and the exemption remains in effect.

Florida’s Sales Tax Exemption eliminates the state’s sales tax on solar energy systems and all their components. When you purchase a solar system in Florida, you won’t pay the standard 6% state sales tax (plus any local sales tax) on the equipment and hardware. This includes solar panels, inverters, batteries, mounting equipment, wiring, and all other components that make up your solar energy system. For a typical residential solar installation costing $25,000, this exemption saves you approximately $1,500 or more in sales tax.

This exemption is available to all Florida homeowners and businesses purchasing solar energy systems, with no income requirements or application process needed. Your solar installer will handle the exemption automatically at the point of sale by documenting that the equipment is being used exclusively for a solar energy system. There are no deadlines or expiration dates—this exemption is an ongoing benefit under Florida law. The exemption covers systems used for electricity generation, water heating, pool heating, and space heating or cooling, making it one of the most comprehensive solar tax exemptions in the country.

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 provider. Most major Florida utilities—including FPL, Duke Energy, TECO, and OUC—offer 1:1 net metering, meaning you receive full retail rate credits for excess energy during the billing cycle. However, some utilities like FPL and Duke Energy have implemented minimum monthly bills ranging from $25-$30 that went into effect in 2022. Other utilities, such as Kissimmee Utility Authority and Gainesville Regional Utility, use net billing systems where excess energy is credited at lower wholesale rates (typically 3-9 cents per kWh rather than the full retail rate).

At the end of each year, most utilities conduct an annual “true-up” in December where any remaining excess credits are either paid out or reset to zero. The payout rate for these year-end credits varies widely—from full retail rate (City of Winter Park) to wholesale rates as low as 1.5-3 cents per kWh (most other utilities). Some utilities like City of Tallahassee and Lakeland Electric allow credits to roll over indefinitely without annual true-up. It’s important to understand your specific utility’s net metering policy, as the financial benefits can differ substantially depending on whether you receive 1:1 crediting, the true-up rate, and any additional monthly charges that apply to solar customers.