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 residential-only coverage unless renewed by the legislature.

This exemption applies automatically once your renewable energy system is installed and assessed – no separate application is required. The benefit continues for as long as you own the system and remains in your home. This incentive works alongside other solar benefits like the federal tax credit, making solar installation more financially attractive by ensuring your property tax bill won’t increase despite your home’s enhanced value from the solar investment.

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 used exclusively in solar energy systems.

The financial benefit varies based on your system size and local tax rates, but can save thousands of dollars on a typical residential solar installation. 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, pumps, controllers, and even pool solar heating systems and solar attic fans.

To qualify, the equipment must be used exclusively in a solar energy system for applications like water heating, space heating and cooling, or electricity generation. Sellers are required to document exempt sales, and purchasers typically need to sign a certification form stating the equipment will be used exclusively for solar energy purposes. There are no income limits, system size restrictions, or application deadlines – the exemption is available indefinitely for qualifying solar purchases.

Keep in mind that this exemption only applies to Florida state sales tax, not federal taxes or other fees. The exemption doesn’t cover general electrical wiring throughout your home or structural modifications that would be needed regardless of the solar system. Make sure to work with your solar installer to properly document the tax exemption at the time of purchase.

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. Important considerations include monthly minimum bills ranging from $25-30 that some utilities like FPL and Duke Energy implemented in 2022, and annual “true-up” periods (usually in December) where excess credits are either paid out at much lower wholesale rates (1.5-3 cents per kWh) or carried forward. Homeowners should carefully review their specific utility’s net metering policy, as terms can vary dramatically – from indefinite credit rollovers to monthly settlements at wholesale rates.