Solar Guide

Florida’s Property Tax Exemption for renewable energy systems protects homeowners from paying higher property taxes when they install solar panels or other qualifying renewable energy equipment. Under this state law, the added value that solar panels bring to your home is completely exempt from property tax assessment for residential properties. This means your property taxes won’t increase even though your home’s actual value has gone up due to the solar installation.

For residential properties, 100% of the solar system’s added value is exempt from property taxes, while commercial properties receive an 80% exemption. The law covers a wide range of renewable energy equipment including solar panels, inverters, storage systems, mounting hardware, and related components. To qualify, the renewable energy system must be installed on or after January 1, 2013 for residential properties. This exemption continues for the life of the system with no expiration date, providing long-term tax savings that can amount to hundreds of dollars annually depending on your system size and local tax rates.

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% Florida sales tax when purchasing solar panels, inverters, batteries, mounting equipment, and other qualifying solar system parts. 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.

The financial benefit varies based on your system size and cost, but can result in significant savings. For example, on a $20,000 solar system, you would save approximately $1,200 in sales tax. The exemption covers a comprehensive list of equipment including solar panels, inverters, batteries, mounting hardware, wiring, pumps, controllers, and storage components. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents purchasing qualifying solar equipment. However, sellers must document exempt sales, and some limitations apply to wiring and piping that would be present regardless of the solar system.

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 benefits vary significantly depending on which utility company serves your area.

Most major Florida utilities like FPL, Duke Energy, and TECO offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-12 cents per kWh) for excess solar production that can roll over month to month. However, these credits are typically “trued up” annually in December at much lower wholesale rates (around 1.5-3 cents per kWh), with your account reset to zero. Some utilities have added minimum monthly bills ranging from $25-30. A few utilities like Kissimmee Utility Authority and some cooperatives use net billing instead, crediting excess production at lower export rates of 3-9.5 cents per kWh but allowing more flexible payout options.

The financial benefit depends heavily on your utility provider, with some offering better long-term value than others. Homeowners should carefully review their specific utility’s net metering policy, as terms can change and some utilities have less favorable policies that may impact solar savings. It’s important to understand your utility’s annual true-up process and any additional fees before installing solar panels.