Sales tax exemption · Florida Department of Revenue · Florida

Florida Solar Energy Equipment Sales Tax Exemption

100% of state and local sales tax (typical 6–7.5%)

Florida exempts solar energy systems — including panels, inverters, mounting hardware, and battery storage — from state and local sales tax under Florida Statute 212.08(7)(hh). At Florida's typical 6% state sales tax plus up to 1.5% county discretionary surtax (7.5% maximum combined), this exemption saves homeowners 6–7.5% off equipment cost. On a $14,000 equipment portion of a $20,000 system, that is $840–$1,050 in saved tax. The exemption is automatic at point of sale through registered solar contractors — no homeowner application required.

Eligibility

Who qualifies?

Florida residential or commercial purchasers of solar PV, solar water heating, or battery storage equipment.

Equipment scope?

Panels, inverters, mounting hardware, batteries (when part of the solar system), and labor to install. Roofing materials are not exempt unless directly required for solar mounting.

How to apply for FL Sales Tax Exemption

Use registered solar contractor

Contractor certified with Florida DOR applies the sales tax exemption automatically at invoice.
Verify exemption on invoice

Equipment line items should not include Florida sales tax. Labor portion may include sales tax depending on classification.

Stacking with other programs

Combines with Florida property tax abatement (DR-418C), federal 25D (30%), Florida 1:1 net metering, and SELF (Solar and Energy Loan Fund). Florida sales tax exemption is among the most valuable state-level solar incentives that operates "behind the scenes" — most homeowners never see it because it never appears on the invoice.

Frequently asked questions

Does this apply to standalone batteries? +

Yes — batteries are written into the exemption broadly enough to include standalone storage installations.

Stack with federal 25D? +

Yes. Sales tax exemption reduces the gross cost; federal 25D applies to the (already discounted) net cost.

How is "labor" treated? +

Labor for solar installation is generally not subject to sales tax in Florida. Equipment + labor together are typically exempt at residential install.

Official program page: https://floridarevenue.com/taxes/Pages/sales-tax-exemptions.aspx