Florida

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. This state tax exemption ensures that the added value from your solar installation won’t increase your annual property tax bill, helping you save money year after year.

For residential properties, 100% of the added property value from renewable energy systems is exempt from property taxes. For non-residential properties, 80% of the added value is exempt. This exemption applies to solar panels, inverters, storage systems, wind turbines, geothermal equipment, and related components that are part of your renewable energy system.

The exemption is available for renewable energy systems installed on or after January 1, 2013, for residential properties. For non-residential properties, systems must be installed on or after January 1, 2018, to qualify. There are no income requirements or application deadlines – the exemption automatically applies once your system is installed and assessed.

Important to note: this exemption is set to expire on December 31, 2037, after which only residential properties will continue to receive the full exemption. The exemption only covers the renewable energy equipment itself, not conventional backup systems or equipment that would be needed regardless of the solar installation.

Florida’s Sales Tax Exemption for solar energy systems eliminates the state’s sales and use tax on solar equipment purchases. This means homeowners don’t pay the typical 6% state sales tax (plus any local sales taxes) when buying solar panels, inverters, batteries, mounting equipment, and other qualifying solar system components. For a typical residential solar installation costing $20,000, this exemption could save homeowners around $1,200 or more in taxes.

The exemption applies to complete solar energy systems and all their components, including solar panels, inverters, batteries, mounting hardware, wiring, and even accessories like pool solar blankets. To qualify, the equipment must be used exclusively for collecting, converting, storing, or using solar energy for applications like electricity generation, water heating, or space heating and cooling. Sellers are required to document exempt sales, and purchasers typically need to certify that their equipment will be used exclusively in a solar energy system. There are no income limits, deadlines, or time restrictions – the exemption is available indefinitely for all qualifying solar purchases in Florida.

Net metering in Florida allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, that extra energy flows to the electric grid and creates credits on your utility bill. These credits can then be used to offset electricity you draw from the grid when your solar panels aren’t producing enough power, such as at night or on cloudy days.

The financial benefits vary significantly depending on your utility company. Most major utilities like Florida Power & Light (FPL), Tampa Electric (TECO), and Duke Energy offer 1:1 net metering, meaning you receive full retail rate credit (typically 10-15 cents per kWh) for excess solar energy during the month. However, these utilities have added minimum monthly bills ranging from $25-30 that went into effect in 2022. At the end of each year in December, any remaining credits are typically paid out at much lower wholesale rates of 1.5-3 cents per kWh, and your account resets to zero.

Some utilities have moved away from traditional net metering to net billing programs that pay lower export rates year-round. For example, Kissimmee Utility Authority pays about 8-9 cents per kWh for exported energy, while Jacksonville Electric Utility’s rate fluctuates between 3-8 cents per kWh based on monthly fuel costs. A few utilities like Clay Electric Cooperative have grandfathered existing solar customers under better terms but offer less favorable rates for new installations.

Eligibility typically requires installing an approved solar system and completing an interconnection application with your utility. There are no statewide deadlines, but some utilities have changed their policies recently, with Clay Electric being the most restrictive for new customers. Homeowners should carefully review their specific utility’s net metering policy before installing solar, as the financial benefits can vary dramatically across Florida’s many different electric providers.