This page has been updated to include 2022 Florida solar incentives, rebates, and tax credits. Learn about all the ways you can cash in and save on the cost of FL solar panels with solar power incentives this year.
Florida Solar Panel Grants and Tax Credits
Florida residents can offset the costs of solar panel equipment and installation with a number of Florida solar tax credits and grants. In this guide to solar energy in Florida, learn about all the ways you can cash in on big savings by making the move to add solar panels to your single-family home.
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 26% of the cost of their solar installation as a deduction on their personal income tax return. If your tax liability is less than the 26% of your solar cost, you can roll the Florida solar tax credits over into subsequent years.
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 expemtion 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.
Eligible property includes solar photovoltaic systems, solar photovoltaic plus storage systems and solar water heaters installed on or after January 1, 2013. 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.
The residential Florida solar property tax exemption applies to assessments completed as of January 1, 2014.
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.
For additional information on going solar in Florida, check out our free Florida Homeowner’s Guide to Solar Installation. Interested in adding solar panels to your single-family home? We can help you take advantage of any applicable Florida solar incentives.