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. This state tax exemption ensures that the added value from your solar installation won’t be considered when calculating your annual property tax bill, providing ongoing savings for years to come.

For residential properties, 100% of the added property value from renewable energy systems is exempt from property tax assessment. For commercial properties, 80% of the added value is exempt. The exemption applies to solar panels, inverters, storage systems, wind turbines, geothermal equipment, and all necessary components like wiring and structural supports. However, it doesn’t cover backup systems or equipment that would be needed regardless of the renewable energy installation.

To qualify, your renewable energy system must be installed on or after January 1, 2013 for residential properties. The exemption is currently set to expire on December 31, 2037, after which only residential properties will continue to receive the full exemption. This incentive works automatically once your system is installed – you don’t need to apply separately, as your local property appraiser will handle the exemption when assessing your property value.

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 purchased and leased solar equipment.

The financial benefit varies based on your system size and local tax rates, but can save homeowners hundreds to thousands of dollars. For example, on a $20,000 solar system, you could save $1,200 or more in state sales tax alone. The exemption covers a comprehensive list of equipment including solar panels, inverters, batteries, mounting hardware, wiring, and even pool solar heating systems. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents installing qualifying solar energy systems.

To claim this exemption, you’ll need to complete a simple certification form stating that the equipment is for exclusive use in a solar energy system. Your solar installer should handle this documentation during the purchase process. Keep in mind that standard household wiring and structural components like roofing are not covered – only equipment that’s specifically part of the solar energy system qualifies for the tax exemption.

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. Credits generally roll over month to month, but most utilities conduct an annual “true-up” in December where any remaining excess credits are paid out at much lower wholesale rates (typically 1.5-5 cents per kWh) before your account resets to zero.

Important considerations include monthly minimum bills that some major utilities like FPL ($25/month) and Duke Energy ($30/month) have implemented, plus additional fees like demand charges or higher customer charges depending on your utility. Some utilities like Clay Electric Cooperative have ended 1:1 net metering for new customers as of 2022, offering only lower export credit rates. The financial benefit depends heavily on your specific utility company, so it’s essential to understand your local utility’s current net metering policy before installing solar panels.