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. This makes solar installations even more financially attractive since you get the energy savings and increased home value without the ongoing property tax burden that would normally come with such a valuable home improvement.

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 solar electric (photovoltaic) systems and solar thermal systems used for water heating, space heating and cooling, and other energy applications.

To qualify for this exemption, the equipment must be part of a solar energy system that collects, transfers, converts, stores, or uses solar energy as an alternative to conventional energy sources like electricity or natural gas. The exemption covers a comprehensive list of components including solar panels, inverters, batteries, mounting hardware, wiring specific to the solar system, and various accessories when used as integral parts of the solar installation. There are no income restrictions or system size limitations, and the exemption has no expiration date, making it available to all Florida homeowners who install qualifying solar systems.

When purchasing solar equipment, sellers are required to document the exempt sale, typically through a certification form completed by the buyer. It’s important to note that some items have limitations – for example, only DC wiring unique to the solar system qualifies, not the standard AC wiring throughout your home that would exist regardless of the solar installation. This exemption can result in significant savings, especially on larger solar installations where the tax savings can amount to hundreds or thousands of dollars.

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 credit values vary significantly depending on which utility company serves your area.

Most Florida utilities offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar energy during the billing period. However, some utilities like Kissimmee Utility Authority and Sumter Electric Co-op provide export credits at reduced rates of 8-9.5 cents per kWh. At the end of each year (usually December), most utilities conduct an annual “true-up” where any remaining excess credits are either paid out at much lower wholesale rates (1.5-3 cents per kWh) or forfeited, and your account resets to zero. Some utilities also charge monthly minimum bills ranging from $25-30 or additional fees for solar customers.

To participate in net metering, you must have an approved solar installation that meets your utility’s interconnection requirements and safety standards. There are no statewide deadlines, but some utilities like Clay Electric Cooperative have changed their policies for new applications, offering less favorable terms for systems installed after certain dates. It’s important to understand your specific utility’s net metering policy before installing solar, as the financial benefits can vary dramatically – from excellent savings with full retail credits to minimal benefits with low export rates and high monthly fees.