Venice, FL Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels or other qualifying equipment won’t increase your property taxes. When you add a solar energy system to your home, the property appraiser excludes 100% of the added value from your property’s assessed value for tax purposes. This means you get all the benefits of a valuable home improvement without paying higher property taxes on that investment.

For residential properties, the exemption applies to solar equipment installed on or after January 1, 2013, and continues through December 31, 2037. The exemption covers solar panels, inverters, batteries, mounting equipment, and other essential system components. However, it doesn’t include backup generators or equipment that would be needed regardless of whether you have solar. There are no income requirements or application fees—the exemption automatically applies when your property is assessed, making solar energy more affordable for Florida homeowners.

Florida’s Sales Tax Exemption eliminates the state’s sales tax on solar energy systems and all their components. When you purchase solar equipment in Florida, you won’t pay the standard 6% state sales tax (plus any local sales tax) on items like solar panels, inverters, batteries, mounting hardware, wiring, and other essential system components. This exemption applies whether you’re installing a solar electric system, solar water heating, or other solar energy applications.

The financial benefit depends on your total system cost. For example, on a $30,000 solar installation, this exemption saves you approximately $1,800 in state sales tax. On a $50,000 system, you’d save around $3,000. There are no income requirements or system size limitations—any homeowner purchasing qualifying solar equipment in Florida is eligible. The exemption covers both purchased and leased equipment, and it includes everything from the solar panels themselves to the smallest bolts and wiring needed for installation.

To claim this exemption, you’ll need to provide documentation to your solar installer certifying that the equipment is being used exclusively for a solar energy system. Your installer should handle this process, but it’s worth confirming they’re applying the exemption to your purchase. There are no deadlines or expiration dates—this exemption is ongoing under Florida law. Keep in mind that standard household wiring that would exist regardless of your solar system doesn’t qualify, and the exemption doesn’t apply to novelty solar items where the solar component cost isn’t separated from the total product price.

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 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 excess energy during the billing cycle. However, some utilities like Kissimmee Utility Authority and Jacksonville Electric Utility use net billing instead, where excess energy is credited at a lower wholesale rate (typically 3-9 cents per kWh rather than the full retail rate). It’s important to note that FPL and Duke Energy customers pay a minimum monthly bill ($25-30) regardless of solar production, and some utilities like Lakeland Electric require customers to switch to demand-based pricing plans.

At the end of each year (typically in December), most Florida utilities perform an annual “true-up” where any remaining excess credits are either paid out or reset to zero. The payout rate for these year-end credits is usually much lower than the retail rate—often just 1.5-3 cents per kWh—though a few utilities like City of Winter Park pay the full retail rate. Some utilities like City of Tallahassee allow credits to roll over indefinitely without an annual true-up. All Florida homeowners with solar systems are eligible for their utility’s net metering or net billing program, though specific terms depend on which utility serves your area and when you interconnect your system.