Tampa, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels won’t increase your property taxes. When you add a solar energy system to your home, the property appraiser cannot include the added value of that system when calculating your property’s assessed value. This means you get all the benefits of solar—including increased home value—without paying higher property taxes on that improvement.

For residential properties, 100% of the solar system’s value is exempt from property tax assessment. For commercial or nonresidential properties, 80% of the system’s value is exempt. The exemption applies to solar panels, inverters, batteries, mounting equipment, and other essential components that are part of your solar energy system. It does not cover backup systems or equipment that would be needed regardless of whether you have solar.

To qualify, your solar system must have been installed on or after January 1, 2013 for residential properties, or on or after January 1, 2018 for nonresidential properties. The exemption is currently set to expire on December 31, 2037, after which the law will revert to covering only residential properties unless renewed by the state legislature. This exemption works automatically through your property’s normal assessment process—you don’t need to pay additional property taxes on the value your solar system adds to your home.

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 parts of your solar system, 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 or leasing the equipment.

To qualify, the equipment must be used exclusively as 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. The exemption covers a comprehensive list of components including solar panels (photovoltaic modules), inverters, batteries, charge controllers, mounting hardware, wiring specific to the solar system, and even pool blankets when used as passive solar collectors. Your solar installer will handle the documentation by having you certify that the purchased equipment is for exclusive use in a solar energy system.

There are no deadlines or expiration dates for this exemption—it remains available as long as the current Florida law is in effect. One important consideration: the exemption only applies to equipment that’s specifically part of your solar system. Standard electrical wiring throughout your home that would exist regardless of the solar installation doesn’t qualify. Your solar provider will automatically apply this exemption at the time of purchase, so you’ll see the savings reflected in your final system cost.

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 power 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 company. Most major Florida utilities—including Florida Power & Light (FPL), Duke Energy, Tampa Electric (TECO), and Orlando Utilities Commission (OUC)—offer 1:1 net metering, meaning you receive full retail rate credits for the energy you export. However, some utilities like FPL and Duke Energy charge minimum monthly bills ($25-$30) regardless of your solar production. Credits typically roll over month to month, but at the end of the year (usually December), any remaining excess credits are “trued up” at a much lower rate—often just 1.5 to 3 cents per kilowatt-hour instead of the full retail rate.

Some Florida utilities have moved away from traditional net metering to “net billing” or export credit programs. Utilities like Kissimmee Utility Authority, Gainesville Regional Utility, and Jacksonville Electric Utility now compensate solar exports at reduced rates ranging from approximately 3.5 to 9 cents per kilowatt-hour rather than the full retail rate. Clay Electric Cooperative ended 1:1 net metering for new customers in May 2022, offering only wholesale rates for exports. A few utilities, like Lakeland Electric, require solar customers to switch to special rate plans that include demand charges.

Eligibility for net metering is generally automatic when you install a solar system and complete your utility’s interconnection process. The specific terms, credit rates, and billing structures depend entirely on which utility serves your home. It’s important to understand your utility’s particular net metering policy before installing solar, as the financial benefits can vary considerably across Florida’s different service territories.