Florida · Tax exemption

FL Solar Sales Tax Exemption

Removes a tax burden residential solar owners in Florida would otherwise carry -- see what it covers, eligibility, and payback impact below.

Sales tax exemption
stated benefit
Residential
eligible customers
12 yr
Florida baseline payback
4
other Florida programs

What it means

In Florida, a 6 kW system already pays back in about 12 years on ~$1,423/year of modeled savings, and the FL Solar Sales Tax Exemption stacks on top of that, on top of any federal credit.

Sales tax exem…
stated benefit
12 yr
baseline payback (pre-incentive)
5
Florida programs that stack
full
net-metering policy

Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.

Program description

Solar energy equipment for residential use is exempt from Florida sales tax.

Program at a glance

Program type
Tax exemption
Eligible customers
Residential
Stated benefit
Sales tax exemption
State electricity rate
14.5¢/kWh
Florida solar score
47/100

How Florida compares to the U.S. average

Why this incentive matters more (or less) here - Florida's solar fundamentals against the national average.

Irradiance
Florida: 5.6 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Florida: 14.5¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Florida: 12 yr
U.S. avg: 14.2 yr

Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.

Solar's trajectory in Florida

The market this incentive operates in: total installed solar capacity in Florida reported to the EIA.

-5000 MW0 MW5.0 GW10.0 GW15.0 GW 200920112013201520172019202120232024 11.0 GW
Florida now has about 11.0 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Florida's solar incentive stack

How this tax exemption sits among Florida's 4 tracked programs, by type

programs

What this shows Florida tracks 3 incentive types; 2 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.

Source DSIRE incentives registry As of 2024

How this incentive fits Florida's solar picture

The FL Solar Sales Tax Exemption removes a tax burden solar owners would otherwise carry, one of Florida's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Sales tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Florida averages 5.6 kWh/m²/day of usable sunlight and residential rates of 14.5¢/kWh, producing an estimated 9,811 kWh/year and $1,423 of annual utility offset on a typical 6 kW system costing $17,100. That baseline already implies a 12-year simple payback and a 25-year modeled net of roughly $18,475 before this incentive - every dollar this tax exemption delivers compresses that payback further.

A handful of other levers are worth checking alongside this one. Florida has 5 solar incentive programs indexed in DSIRE, including adjacent options like FL Solar Energy Property Tax Exemption, FL Net Metering, FPL SolarTogether Community Solar. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.

Your next step

  • See Florida's full solar profile, score, irradiance, rates, payback, and every program you can claim. Florida solar data
  • Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
  • Read how state and federal solar credits work together. Tax-credit guide

Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.

Frequently asked questions

What is the FL Solar Sales Tax Exemption?
The FL Solar Sales Tax Exemption is a tax exemption available to residential solar customers in Florida. The stated benefit is Sales tax exemption.
How does the FL Solar Sales Tax Exemption work?
Solar energy equipment for residential use is exempt from Florida sales tax.
Who is eligible for the FL Solar Sales Tax Exemption?
The program is available to residential customers in Florida. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Florida?
Florida has an estimated 12-year payback for a 6 kW system before incentives, with about $1,423/year in modeled savings. A tax exemption like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Florida?
Yes - Florida has 5 solar incentive programs tracked in DSIRE, including FL Solar Energy Property Tax Exemption, FL Net Metering, FPL SolarTogether Community Solar. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.