Solar panel installation can be a cost-effective home improvement that provides Florida homeowners with numerous financial benefits.

One of those is increased property value; however, it leaves many homeowners wondering whether receiving solar panel services to make their homes more efficient will ultimately cost them more at property tax time.

Fortunately, there is good news for homeowners interested in getting solar panels for their Florida homes!

How Are Home Improvements and Value Related to Property Taxes?

Florida property taxes paid each year to a homeowner’s county are determined according to the value of that property.

When homeowners invest in major home improvements, many times the value of their homes increases.

Homes can be reassessed and tax values reassigned when a significant increase in property value is noted.

This often leaves homeowners interested in solar panel installation wondering whether doing so will increase their property taxes, as desirable solar panels are known to increase home value.

How Much Value Do Solar Panels Add To A Home?

Solar panels add value to a home by making it more energy-efficient and affordable to run.

Knowing exactly how much street value they can add to a home differs based on the home size, the state, and how property taxes are calculated.

Real estate company Zillow reported in a 2019 article that Florida homeowners who invested in solar panel services benefited from an average of 4.6% higher sale prices based on home appraisals and the desirability of solar home systems.

That number is likely somewhat higher today, as the demand for solar homes continues to increase.

Noting this and other industry studies, solar panel installation can increase the value of an average-sized $300,000 home by between $10 and $15k depending on the location and other details about the home.

Does Solar Panel Installation Affect Property Taxes?

In some states, the value increase created by solar panels is enough for homeowners to see a higher property assessment, which leads to slightly higher property taxes at the end of the year.

Yet in some states and Florida is one of them, property value increases due to the installation of solar panels are exempt.

Through the Florida Property Tax Abatement for Renewable Energy, homeowners can invest in solar panel services for their homes without seeing an increase in their property taxes due to value increases.

The law exists to encourage more Florida homeowners to invest in clean home solar energy by protecting their investment and the financial advantages they can gain.

Combined with one or more of the income tax credit benefits some homeowners may also qualify for, adding solar panels is a win-win situation.

Plan For Solar Panels With An Experienced Solar Panel Service

While solar panels will increase the value of a home, Florida homeowners can rest easy knowing that they won’t see elevated property tax bills as a result.

In Florida, property value increases resulting from solar panel installation are excluded from property tax calculations, allowing homeowners to reap the full benefits of their energy savings.

A well-designed system installed by an experienced solar panel service brings homeowners many benefits including higher home value without the higher property taxes!