Solar Incentives in Florida

Florida Statute 212.08(7)(hh) exempts solar energy equipment from the state's 6% sales and use tax. This includes solar panels, inverters, racking, monitoring equipment, and battery storage systems when installed as part of a solar energy system. On a $20,000 system, this saves $1,200. The exemption is permanent and applies to both residential and commercial installations. Equipment must be used for solar energy systems — items like general electrical components may not qualify.

Florida Statute 193.624 provides that the installation of a solar energy device on residential property does not increase the property's assessed value for ad valorem tax purposes. For a system that would add $18,000 in assessed value at a 1.1% effective tax rate, this saves approximately $200/year. The exemption applies automatically upon installation — no annual application is required. Commercial installations may have different treatment depending on the county appraiser.

Florida's net metering rules are set by the Florida Public Service Commission and apply to all investor-owned utilities including FPL, Duke Energy Florida, Tampa Electric (TECO), and Gulf Power. Excess credits roll over monthly but are typically zeroed out or paid at a lower avoided-cost rate at the end of an annual true-up period. System size is generally limited to 2 MW for residential and 2 MW for commercial. Note: the Florida legislature has considered changes to net metering policy in recent sessions — verify current policy with your utility before installation.