Federal Tax Credits for Florida Residents

The Solar Investment Tax Credit program lets homeowners recoup a sizable portion of the cost of installing a solar energy system. It lets homeowners claim 30% of the cost of their solar installation as a deduction on their personal income tax return. You will need to submit IRS Form 5695 when filing your federal taxes.

Florida Solar Panel Sales Tax and Use Tax Exemption

In 1997, the Florida state legislature passed legislation making solar energy systems exempt from Florida sales and use tax. In May 2005, this exemption became permanent. The exemption applies to photovoltaic solar panel systems, solar hot water, solar pool heating, solar space heaters and related components. Occasionally, the Florida Solar Energy Center revises its list of solar equipment and hardware that qualify as part of a solar energy system eligible for the tax breaks.

The Florida sales tax exemption means you will see a savings of 6% on your FL home solar installation.

Florida Solar Property Tax Exemption

Florida’s solar property tax exemption provides generous property tax savings for those that make renewable energy improvements. There’s a 100% property tax exemption on residential solar renewable energy property. Covered equipment includes solar energy collectors, photovoltaic modules, inverters, storage tanks and other storage systems (excluding swimming pools used as storage tanks), thermostats and other control devices, heat exchange devices, pumps an fans, freestanding thermal containers, pipes, ducts, wiring, structural supports, and power conditioning and storage devices that store or use solar energy to generate electricity or mechanical forms of energy.

Local Florida Solar Incentives 

Fortunately, for residents in certain areas, there are great local Florida solar rebates available to help with solar installation costs.

Boynton Beach Energy Edge Rebate Program: Applicants can receive a $1,500 rebate for installing a rooftop solar photovoltaic system. Systems must be 5kW or larger, equal to or more than 17.5 % efficiency and completed by a certified solar contractor. Expedited permitting may also be available. The building must be your primary residence or your business must be the principal occupant of the building. You cannot offer the building for sale or lease within 1 year of finishing the work.

Dunedin Solar Energy Grant Program: This program provides a grant of 25 cents per watt of solar energy installed up to a maximum of $2,500. Applicants must be a city resident or business (unincorporated addresses are not eligible). Permits must be applied for, issued, inspected and completed on or after October 1, 2018. These Florida solar grants are awarded on a first-come, first-served basis for as long as funds are available. Please note: Funding for fiscal year 2021 has been exhausted and the program is not accepting any more applications this fiscal year. If additional funding for the program is approved, applications will be accepted as of October 1, 2021.

Florida Keys Electric Cooperative Solar Loan: The Florida Keys Electric Cooperative is a member-owned not-for-profit utility serving the Upper and Middle Keys. Approved members may receive a loan up to $35,000 for the purchase and installation of a grid-tied Distributed Energy Resource (DER) system, including distributed renewable solar photovoltaic systems and grid-tied battery storage systems. Systems must be installed by a qualified solar company.

Jacksonville JEA Battery Incentive Program: Homes and businesses can receive a $4,000 rebate on batteries with a usable capacity of 6kWh and a warranty of at least 10 years of 5,000 cycles.

Orlando OUC Rebates: OUC solar photovoltaic customers can receive a $2,000 rebate on batteries with usable capacity of 8kWh and a 10-year defect warranty. Residential electric customers can receive up to $900 in rebates for installing a solar thermal water heating system.

Florida Solar PACE Financing

PACE loans let local cities and towns offer loans paid via an increase to your property taxes. A PACE solar loan lets you save money on utility bills immediately and, if you move, pass on the remaining balance to the next property owner. The new owner can continue paying the loan or have equipment removed. Florida Solar PACE Programs vary and you should check with your local county or certified solar installer.

Florida Net Metering

Florida net metering lets you sell back surplus solar electricity to the electric grid at the full retail rate. It’s a powerful way to earn money because of your solar energy solution. For every 1 kWh you send back to the grid, it’s 1 kWh off your electricity bill. Like some states, Florida has no set capacity limit.