Winter Garden, 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 having solar. There are no income requirements or application deadlines to worry about—the exemption automatically applies when your solar system is installed and assessed by your local property appraiser.

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 system parts, 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 application deadlines or time limitations—this exemption is an ongoing benefit under Florida law. However, it’s important to note that standard household wiring that would exist regardless of your solar system doesn’t qualify for the exemption. The tax savings are automatic at the point of sale, so you’ll see the reduced price immediately when you purchase your system. This exemption works alongside other solar incentives to reduce your overall investment in clean energy.

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 depending on your 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 throughout the year. However, some utilities like FPL and Duke Energy charge minimum monthly bills ($25-$30) regardless of your solar production. Other utilities, such as Kissimmee Utility Authority and Gainesville Regional Utility, use net billing instead, crediting exports at lower wholesale rates (typically 3-9 cents per kWh rather than the full retail rate).

At the end of each year (usually in December), most utilities conduct an annual “true-up” where any remaining excess credits are either paid out or reset to zero. The payout rate for these remaining credits varies widely—from full retail rate (City of Winter Park) to wholesale rates as low as 1.5-3 cents per kWh (most other utilities). Some utilities like City of Tallahassee allow credits to roll over indefinitely with no annual reset. Homeowners should carefully review their specific utility’s net metering policy, as the financial benefits can differ substantially based on monthly minimum bills, credit rollover rules, and year-end settlement rates.