Tampa, FL Solar Panels

Florida’s Solar Energy Systems Sales and Use Tax Exemption means that when you purchase a solar panel system, you pay zero sales tax on all qualifying equipment — including solar panels, inverters, racking, batteries, and other accessories. With Florida’s standard sales tax rate at 6%, this exemption can save the average homeowner over $2,000 on a typical installation.

The exemption applies automatically at the point of sale, so there is no separate application to file. Your solar installer will handle the process. The exemption covers equipment certified by the Florida Solar Energy Center as qualifying solar energy components, and it has been a permanent part of Florida law since its original enactment in 1997.

This incentive is available to all Florida residents purchasing a solar energy system, regardless of system size or location — including residents of Tampa. It applies equally to solar-only systems and systems paired with battery storage, making it one of the simplest and most universally accessible solar incentives in the state.

Under Florida Statute 196.182, homeowners who install a solar energy system are completely exempt from paying additional property taxes on the value that the solar system adds to their home. This 100% exemption is currently authorized through 2037, giving homeowners long-term certainty that their property tax bill will not increase as a result of going solar.

Solar installations can add significant value to a home — often $15,000 or more — so without this exemption, homeowners could face hundreds of dollars in additional property taxes each year. The exemption covers all residential solar equipment, including photovoltaic modules, inverters, control devices, wiring, power conditioning systems, and storage devices.

Non-residential (commercial) renewable energy properties are eligible for an 80% property tax abatement under a related provision. For residential homeowners in Tampa, the exemption is automatic and tied to the property, so no ongoing annual application is typically required once the system is permitted and recorded. Consult your county property appraiser’s office for local filing procedures.

Florida’s net metering policy requires the state’s major investor-owned utilities — including Tampa Electric Company (TECO), which serves Tampa — to credit residential solar customers at the full retail rate for every kilowatt-hour (kWh) of excess electricity exported to the grid. This one-to-one credit is one of the most favorable net metering policies in the country and significantly improves the financial return on a solar investment.

Excess bill credits roll over from month to month throughout a 12-month period. At the end of the annual cycle (typically in January), any remaining unused credits are paid out in cash at a reduced rate of approximately 3–5 cents per kWh, depending on the utility. Residential systems can be sized up to 115% of the customer’s average annual energy consumption, and there is no statewide aggregate cap on net metering participation.

Important policy change ahead: Florida’s full retail-rate net metering is scheduled to change after 2026. The compensation rate is set to drop to 60% of the retail rate in 2027 and 50% of the retail rate in subsequent years. Homeowners who install solar before the policy changes are expected to be grandfathered into the current favorable rate, making now an especially advantageous time to go solar in Florida.

The Inflation Reduction Act (IRA) of 2022 expanded the Residential Clean Energy Credit to include standalone battery storage systems, meaning Tampa homeowners can claim a 30% federal tax credit on the full cost of a qualifying battery installation — even if it is not paired with a new solar panel system. This is a significant benefit for homeowners who already have solar and want to add storage, or who want backup power without panels.

To qualify, the battery storage system must have a capacity of more than 3 kilowatt-hours (kWh). The credit covers the full installed cost, including equipment and labor. The 30% credit rate is in effect through 2032, after which it steps down to 26% in 2033 and 22% in 2034. The credit is non-refundable but can be carried forward to future tax years if it exceeds your tax liability in the year of installation.

To claim the credit, file IRS Form 5695 (Residential Energy Credits) with your federal tax return for the year the battery system is placed in service. You must own the system outright — leased battery systems do not qualify. Consult a tax professional to confirm your eligibility based on your individual tax situation.

Florida’s Property Assessed Clean Energy (PACE) program enables homeowners to finance solar panel systems, battery storage, and other qualifying energy upgrades with no money down. Instead of a traditional loan, the financing is structured as a special assessment attached to the property’s annual tax bill, repaid at a fixed interest rate over a term of up to 25 years. There are no credit score requirements to qualify, making PACE accessible to homeowners who may not qualify for conventional financing.

One important feature of PACE financing is that the repayment obligation is tied to the property, not the individual homeowner. If you sell your home before the loan is paid off, the remaining balance transfers to the new owner as part of the property tax assessment. Contractors are paid directly by the PACE provider after the work is completed and verified, protecting homeowners from upfront payment risks.

PACE programs are available in most Florida counties, but specific providers and program details vary by location. Homeowners in Tampa should consult their local government, a certified solar installer, or the DSIRE database to identify the PACE providers operating in their county and to understand all terms before committing to this financing option.

The Solar and Energy Loan Fund (SELF) is a Florida-based nonprofit Community Development Financial Institution (CDFI) that provides affordable, low-interest loans for solar panel installations and other home energy improvements. SELF loans are unsecured, meaning no home equity is required, and they are available to Florida homeowners with a credit score of 500 or above. Loan amounts start at $1,000, and interest rates typically range from 5% to 9.5% depending on the applicant’s financial profile.

Unlike many traditional lenders, SELF does not impose income limits, making its loan products accessible to a wide range of Florida homeowners — including those in Tampa with limited credit history or lower incomes. The program is specifically designed to remove financial barriers to clean energy adoption and help households that might otherwise be unable to afford solar installations.

SELF loans can be used for solar PV systems, battery storage, energy efficiency upgrades, water conservation improvements, and windstorm upgrades. Florida homeowners interested in SELF financing should contact the organization directly to learn about current loan products, terms, and the application process.