Florida Solar Panels

Florida’s Property Tax Exemption for renewable energy systems ensures that installing solar panels won’t increase your property taxes. When you add a solar energy system to your home, the property appraiser cannot include the added value of that system when calculating your property’s assessed value. This means you get all the benefits of solar—including increased home value—without paying higher property taxes on that improvement.

For residential properties, 100% of the solar system’s value is exempt from property tax assessment. For commercial or non-residential properties, 80% of the system’s value is exempt. The exemption applies to solar panels, inverters, batteries, mounting equipment, and other essential components that are part of your solar energy system. To qualify, your solar equipment must have been installed on or after January 1, 2013 for residential properties, or January 1, 2018 for non-residential properties.

This exemption is currently set to expire on December 31, 2037, after which the law will revert to covering only residential properties. The exemption is automatic—you don’t need to apply separately, as your property appraiser will exclude the solar system’s value during regular property assessments. This benefit continues for as long as you own the system and the exemption remains in effect, providing ongoing tax savings throughout your solar system’s lifetime.

Florida’s Sales Tax Exemption eliminates the state’s sales tax on solar energy systems and all their components. When you purchase a solar system in Florida, you won’t pay the standard 6% state sales tax (plus any local sales tax) on the equipment and hardware needed for your installation. This includes solar panels, inverters, batteries, mounting equipment, wiring, and other essential components that collect, convert, store, or distribute solar energy.

The financial benefit depends on your system’s total cost. For example, on a $30,000 solar installation, you would save approximately $1,800 in state sales tax. On a $50,000 system, your savings would be around $3,000. To qualify, the equipment must be used exclusively as part of a solar energy system that offsets conventional energy sources. Your solar installer will typically handle the exemption documentation at the time of purchase by having you certify that the equipment is being used for a solar energy system. There are no deadlines or expiration dates for this exemption—it’s an ongoing benefit available to all Florida homeowners who install solar. Keep in mind that this exemption only applies to the solar equipment itself; it doesn’t cover general electrical work or structural improvements that would exist regardless of your solar installation.

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 electricity 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 Utility 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, Gainesville Regional Utility, and Jacksonville Electric Utility use net billing instead, crediting exports at lower wholesale rates (typically 3-9 cents per kWh rather than the full retail rate). Monthly credits generally roll over, but most utilities conduct an annual “true-up” in December or January, paying out remaining credits at reduced rates (often 1.5-3 cents per kWh) before resetting your account to zero.

Important considerations include minimum monthly bills that some utilities have implemented—FPL and Duke Energy charge $25-30 per month minimum regardless of your solar production. Some utilities like Lakeland Electric require customers to switch to demand-based pricing plans, while others add small monthly fees for solar customers. If you’re considering solar, it’s essential to understand your specific utility’s net metering policy, as the financial benefits can vary considerably across Florida’s different service territories. Projects must be approved and interconnected with your utility to participate in net metering.