It’s only natural that the Sunshine State has some of the best solar potential in the country, averaging more than 230 sunny days per year. As a result, Florida ranks third overall in the U.S. for installed solar capacity according to the Solar Energy Industries Association (SEIA) — and that number is only continuing to grow.
Although residential solar panels are an attractive option in Florida, you might be wondering if higher property taxes will eat into your solar savings. It’s true that solar panels can significantly increase your home’s value, but thankfully many states exempt solar installations from property taxes to encourage homeowners to switch to clean solar energy.
In this guide, we’ll explore how solar panels affect your home’s value in Florida and explain whether or not solar panels will increase your property taxes in Florida.
How Much Value Do Solar Panels Add To Your Home?
Solar panels can be a big investment into your home; luckily, this investment tends to pay off as solar panels have been proven to increase your home’s value. One study by the National Renewable Energy Laboratory found that your home’s value increases by $20 for each dollar in annual utility savings your solar panels provide. For a simpler calculation, you can use data from a 2019 survey by Zillow that found that solar panels increase your home’s value by around 4.5% in the Orlando, FL, area.
So, for example, if your home is worth $300,000, adding solar panels will increase your property’s value by about $13,500 in Florida. While this is great news for those looking to boost their property value, it could also lead to higher property taxes since they are assessed based on the value of your home. Thankfully, states like Florida have created special property tax exemptions for solar systems that can help you avoid these increases.
Do Solar Panels Increase Property Taxes in Florida?
Florida is known for having slightly lower property tax rates than the national average, coming in at around 0.80%. This means the average Florida homeowner pays about $2,338 annually in property taxes, though this number can vary widely by county. Any significant home improvement project will drive this number up, as it increases your home’s value. Installing solar panels, however, is different.
Florida’s Property Tax Abatement for Renewable Energy policy provides a 100% property tax exemption for residential solar equipment (including battery storage) in Florida. This prevents your property taxes from going up after solar installation. This isn’t the only solar-friendly tax policy in the state; Florida also provides a sales tax exemption for solar equipment, helping you save even more money when you make the switch to solar.
Harness the Power of the Sun in the Sunshine State
In a nutshell, solar panels can significantly boost the value of your Florida home without raising your property taxes — but the benefits don’t stop there. You can also take advantage of the state’s favorable net metering policies to slash your utility bill and receive a federal tax credit worth 30% of the cost of your system.
At Solar Optimum, we can help you make the most of your solar savings by offering flexible financing options and ensuring you take advantage of all relevant rebates and incentives in the Sunshine State. Contact us today to learn more about how we can help you go solar.
