Florida’s solar property tax exemption keeps your property tax bill from going up after you install a qualifying solar system. Residential owners get a 100% exclusion of the value the system adds to the home; commercial owners get 80%. The benefit runs through December 31, 2037, and you have to file an application with your county property appraiser by March 1 of the tax year you want it applied.
What Gets Excluded From Your Assessed Value
When you improve your property, the county property appraiser normally raises its assessed value and your tax bill follows. Florida Statute 193.624 tells the appraiser to ignore renewable energy equipment when doing that math.1Florida Senate. Florida Code 193.624 – Assessment of Renewable Energy Source Devices A rooftop array that would otherwise push your assessed value up by $30,000 adds nothing for tax purposes on a home. Your bill stays where it was.
The percentage depends on how the property is used. On a residence, the appraiser may not consider any of the just value the device adds. If your home’s value climbs by $25,000 because of the panels, none of that $25,000 lands in your assessed value.1Florida Senate. Florida Code 193.624 – Assessment of Renewable Energy Source Devices
On non-residential property, 80% of the added value is excluded. A $100,000 commercial installation that adds $100,000 in value shows up in the assessment as $20,000, and the owner pays property tax on that slice.
The start dates also differ. The residential exclusion covers devices installed on or after January 1, 2013. The non-residential exclusion applies to devices installed on or after January 1, 2018, with a narrow exception for certain projects in fiscally constrained counties where planning applications were filed before that date.1Florida Senate. Florida Code 193.624 – Assessment of Renewable Energy Source Devices Both provisions sunset on December 31, 2037.
What Equipment Qualifies
The statute covers equipment that collects, transmits, stores, or uses energy from solar, wind, geothermal deposits, or biogas.1Florida Senate. Florida Code 193.624 – Assessment of Renewable Energy Source Devices For a typical residential solar buyer, the qualifying equipment includes:
- Photovoltaic modules and solar collectors
- Inverters and power conditioning equipment
- Battery storage tied to the system
- Wiring, structural supports, ductwork, and refrigerant handling components
- Thermostats, control devices, pumps, and fans that serve the system
Two categories are carved out. Conventional backup systems don’t qualify, and neither does any equipment that would have been required even without the renewable energy device. A natural gas generator you install alongside the panels gets no exclusion. Anything on the utility side of the point where your system connects to the grid is also outside the exemption.1Florida Senate. Florida Code 193.624 – Assessment of Renewable Energy Source Devices One detail that catches people out: a swimming pool used as a thermal storage tank is specifically excluded from qualifying storage.
How to File
The exclusion is not automatic. You apply with your county property appraiser’s office by March 1 of the tax year you want it applied. Miss that date and you forfeit the exclusion for that year.2The Florida Legislature. Florida Code 196.011 – Annual Application for Exemption
Bring documentation that shows what you installed and when. That usually means your purchase invoice or installer contract, proof of the installation date, and any building permits your county issued for the work. The appraiser uses those to confirm the equipment qualifies and to decide how much value to strip out of the assessment.
If You Miss the March 1 Deadline
Florida law gives you a limited second chance. You can file a late application with the property appraiser up to 25 days after the appraiser mails the annual assessment notices, which typically go out in mid-August. You’ll need to show extenuating circumstances, and the appraiser has discretion to grant or deny.2The Florida Legislature. Florida Code 196.011 – Annual Application for Exemption
If the late application is denied, you can petition the county’s value adjustment board during the same window. The petition carries a $15 nonrefundable fee. A postal error that caused you to miss the deadline is handled separately and should be granted if you can document it.
Stacking the Federal 30% Credit
Florida’s property tax exclusion does not reduce what you can claim on your federal return. Under Section 25D of the Internal Revenue Code, homeowners who install qualifying solar, wind, geothermal, or battery storage systems can claim a federal tax credit equal to 30% of the total cost, including labor, wiring, and onsite preparation.3Office of the Law Revision Counsel. 26 USC 25D – Residential Clean Energy Credit The 30% rate covers systems placed in service through the end of 2032, then drops to 26% in 2033 and 22% in 2034.
Eligible equipment includes solar electric systems, solar water heaters where the heated water is used in the home rather than a pool, wind turbines, geothermal heat pumps, and battery storage with at least 3 kilowatt-hours of capacity. You claim the credit on IRS Form 5695 with your federal return for the year the system was placed in service.4Internal Revenue Service. About Form 5695 – Residential Energy Credits There is no dollar cap, but the credit only offsets federal income tax liability for the year; any unused portion carries forward.
Run the numbers together. A Florida homeowner who spends $28,000 on a rooftop system gets an $8,400 federal credit, pays no additional property tax on the value the system adds, and also benefits from Florida’s separate sales tax exemption on solar equipment.
A Note on Commercial Property
If the installation is on a commercial building, the Florida exclusion drops to 80%, but federal treatment adds two more layers your tax advisor should look at: accelerated depreciation, since solar equipment is classified as 5-year property under the Modified Accelerated Cost Recovery System, and the federal investment tax credit under Section 48 or 48E.5Internal Revenue Service. Cost Recovery for Qualified Clean Energy Facilities, Property and Technology These stack with the state exclusion rather than replacing it.
Tell Your Home Insurer
The property tax exclusion holds your tax bill steady, but the panels do raise your home’s replacement cost. Contact your homeowners insurer before or immediately after installation. If the system isn’t listed on the policy and a storm destroys it, you may find the equipment uninsured.
Most standard policies cover rooftop panels that are permanently attached to the structure, treating them the same as other parts of the building. Ground-mounted or portable systems often fall outside standard coverage or face separate limits. Routine wear and gradual degradation are excluded across carriers. If you lease the panels rather than owning them, the leasing company usually carries the equipment insurance, but get that confirmation in writing.
Expect a modest premium increase proportional to the system’s replacement value. For a system in the $25,000 to $50,000 range, an annual increase of a few hundred dollars is common, though this varies by carrier and location. Check that your coverage limits and deductibles would actually cover a total loss of both the panels and the rest of the home.