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2023 Guide to Florida’s Solar Tax Credits, Incentives and Rebates

Since 2019, Florida has consistently ranked as one of the top three states for solar energy adoption. 

With enough solar capacity to power over 1.2 million homes, Florida boasts abundant sunshine and various incentives for homeowners. At Americus Energy, we have extensively researched the best solar incentives available in Florida. Our goal is to assist you in reducing the cost of solar panel installation while maximizing the ROI for clean energy in your home. 

Here’s how you can save money on your solar investment and decrease your energy bills through solar sales tax exemptions, property tax exemptions, net metering, and other local benefits in Florida.

Tax Exemptions

As of 2023, Florida has provided a sales tax exemption and property tax exemption for solar energy systems. Unfortunately, solar rebates and grants are currently unavailable in Florida.

Federal Solar Tax Credit

The federal solar tax credit, also known as the Investment Tax Credit (ITC), is a nationwide incentive that enables individuals to receive a tax credit for the expenses incurred while installing solar panels. This credit provides solar owners with a deduction of 30% of their overall system costs. Individuals can take advantage of additional local incentives, including exemptions from Florida’s sales tax and property tax.

The federal tax credit for solar dropped to 26% in 2020 but was later restored to its original 30% rate in 2022 by the Inflation Reduction Act. This credit will be available until 2034, gradually phasing out. Here is the schedule: 

  • The credit will decrease to 26% in 2033
  • The credit will decrease to 22% in 2034
  • Unless renewed by Congress, the credit will phase out entirely in 2035

The Solar and CHP Sales Tax Exemption

  • Who it applies to: The retail rate of solar panels, solar heaters, and combined heat and power systems. It is available for residential, commercial, and agricultural uses.
  • How to claim: This one-time incentive is automatically applied when you purchase a solar energy system in Florida.

In July 1997, Florida implemented a sales tax exemption for solar energy and combined heat and power (CHP) systems. Initially intended for a finite period of five years, the state made the wise decision to convert the sales tax exemption into a permanent benefit.

Residents of Florida are fortunate to be exempt from paying sales tax on solar energy systems, regardless of the system size. However, it is important to use solar equipment certified by the Florida Solar Energy Center to qualify for this exemption. The process for claiming this exemption is straightforward – when purchasing an eligible solar panel system in Florida, you will not be charged the 6% sales tax.

Property Tax Abatement for Renewable Energy Property

  • Who it applies to: Those who pay property taxes through December 2037.
  • How to claim: Your solar system is automatically excluded from your property tax value.

Installing solar panels for renewable energy can increase property value, typically resulting in higher property taxes. However, in Florida, the Property Tax Abatement for Renewable Energy Property exempts homeowners from additional taxes on the increased value of their homes. 

If you install solar panels in your home, your property taxes will not increase, even if the value of your home goes up with the installation. This incentive was implemented in July 2013 and will continue to be effective until December 2037.

Local Exemptions

In 2023, Florida does not provide incentive programs that target specific regions or cities apart from the statewide initiatives mentioned above. Therefore, residing in places like Orlando or Tampa does not make you eligible for additional incentives. 

While in the past, the Jacksonville Electric Authority (JEA) used to have a rebate program of $4,000 for solar battery storage systems, but it is no longer available on their official website. Nevertheless, JEA still offers incentives for energy efficiency and solar water heating.

Ensure you’re not missing out on any local incentives before installing a rooftop solar system in Florida. Keep tabs on changes in solar programs and new government incentives, check trusted references like city and county government websites and local utility company websites, and consult with your solar installer for information on available financial incentives.

Florida Net Metering

The electricity generated by your solar panels is a simple equation determined by the amount of available sunshine in your state. Typically, solar PV systems reach their peak output during noon. 

However, there may be occasions where your energy production exceeds your home consumption. You can accumulate credits towards your utility bill through net metering by supplying surplus solar energy to the local electric grid. 

FPL and Duke Energy, Florida’s two major electric utility companies, provide net metering programs for solar power systems. These programs support installations with capacities up to 2,000 kW, significantly larger than the average home setup.

While there are some application fees and insurance requirements for larger units, because most home solar systems are typically below 10 kW, most homeowners can participate in Florida’s net metering programs without either. 

Florida Solar Resources

Solar Industries Association: Florida

Florida Power & Light

Florida Solar Energy Industries Association

Let Americus Energy guide your solar energy project! Consult with us today to match the perfect system to your needs. 

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