Florida Solar Power Incentives and Tax Credits: A 2023 Guide

The Federal Solar Tax Credit

The Residential Clean Energy Credit offers homeowners a 30 percent federal tax credit on the cost of a new solar energy system, including panels, inverters, wiring, racking, battery storage, and labor. Originally set to step down over time, the credit was extended at the 30 percent level through 2032 by the Inflation Reduction Act of 2022. For an average Florida residential solar installation, the credit commonly translates into thousands of dollars of tax savings, dramatically reducing the effective system cost.

Florida Property Tax Exemption for Solar

Florida provides a 100 percent property tax exemption for the assessed value of solar energy systems on residential property. Because a solar installation typically increases a home's value, this exemption prevents homeowners from seeing their property tax bill rise as a direct result of adding solar. The exemption applies to residential installations across the state.

Solar and CHP Sales Tax Exemption

Florida exempts solar energy system equipment from state sales tax. This includes panels, inverters, wiring, racking systems, conduit, and solar batteries. For a typical Florida residential system, this exemption can save homeowners roughly $1,500 to $2,500, depending on system size and cost. The exemption simplifies installation quotes by removing state sales tax from the solar equipment line items.

Net Metering

Florida's net metering policy is one of the most important solar incentives for residential homeowners. Net metering credits homeowners on their electric bill for excess power their solar system exports to the grid. During daytime hours when panels produce more electricity than the home uses, the utility credits the homeowner at retail rates. At night, or when production is low, the home pulls power back from the grid, using those credits.

Net metering has allowed many Florida homeowners to offset a large portion—sometimes nearly all—of their electricity costs. Recent legislative proposals have sought to adjust the rules on how excess power is credited, so homeowners should confirm current policy with their utility before installation.

Local Rebates and Loans

Florida does not offer a statewide solar rebate, but some cities and utilities offer their own programs. Orlando Utilities Commission, for example, has offered a rebate of $2,000 to residential solar customers installing new systems. Several municipal utilities and cooperatives also run low-interest loan programs to make solar installations more affordable. Homeowners should check with their local utility to see what is available in their area.

Financing Options

Florida homeowners can finance solar systems through cash, home equity loans, solar-specific loans, or leases and power purchase agreements (PPAs). Outright purchase and loans allow the homeowner to claim the federal tax credit and state exemptions directly, while leases and PPAs typically transfer those benefits to the system owner. Cash or loan purchases generally deliver the largest long-term savings.

How to Start

Homeowners interested in solar should begin by getting multiple quotes from licensed, insured Florida solar contractors. Look for companies that are members of industry associations such as the Florida Solar Energy Industries Association. Review contract terms carefully, paying attention to warranties on panels (often 25 years), inverters (10 to 25 years), and workmanship. Confirm net metering arrangements and utility approval requirements before installation.