St. Petersburg, 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 more valuable home 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. Qualifying equipment includes solar panels, inverters, batteries, mounting hardware, and other integral system components. The exemption does not cover conventional backup systems or equipment on the utility side of your interconnection point. This benefit automatically applies when your solar system is installed—you simply need to ensure your property appraiser is aware of the installation. The exemption provides ongoing savings throughout the life of your system by keeping your property tax bill lower than it would otherwise be.

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 equipment for a new system or adding to an existing one.

To qualify, the equipment must be 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. This includes solar photovoltaic (electric) systems, solar water heaters, and even items like solar-powered attic fans and pool blankets when used as part of a solar system. Your solar installer will handle the documentation by having you certify that the purchased equipment will be used exclusively in a solar energy system. There are no deadlines or expiration dates—this exemption is an ongoing benefit under Florida law. Keep in mind that standard household wiring that would exist regardless of your solar system doesn’t qualify for the exemption, and the savings apply at the time of purchase rather than as a rebate or credit claimed later.

Net metering in Florida allows homeowners with solar panels to receive credits for the excess electricity their system sends back to the power grid. When your solar panels produce more energy than your home uses, that surplus power flows to the grid, and your utility company credits your account. 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 company. Most major Florida utilities—including Florida Power & Light (FPL), Duke Energy, Tampa Electric (TECO), and Orlando Utility Commission (OUC)—offer 1:1 net metering, meaning you receive a credit equal to the full retail rate for each kilowatt-hour (kWh) you export. Your credits typically roll over month to month throughout the year. However, during the annual true-up period (usually in December), any remaining excess credits are paid out at a much lower rate—typically between 1.5 to 3 cents per kWh—and your account resets to zero. Some utilities like FPL and Duke Energy also charge minimum monthly bills of $25-$30 regardless of your solar production.

A few Florida utilities operate under net billing instead, including Kissimmee Utility Authority, Gainesville Regional Utility, Jacksonville Electric Utility, and Clay Electric Cooperative (for new customers). With net billing, your exported energy is credited at a lower wholesale rate—ranging from about 3 to 9 cents per kWh depending on the utility—rather than the full retail rate. This means the financial benefit is reduced compared to traditional 1:1 net metering. Net metering is generally available to residential solar customers, though specific system size limits and interconnection requirements vary by utility. There are no statewide deadlines, but some utilities have changed their policies over time, with customers who interconnected earlier sometimes receiving more favorable terms than new applicants.