For our clients from Florida this incentive essentially means a lower cost of a solar power system. In other words, all the components constituting a solar PV system, including solar panels, inverters, charge controllers, and even batteries, will be free from the 6% sales and use tax.
Let's clarify on the term 'solar power system'. According to the Florida Department of Revenue, a solar power system encompases:
- solar collectors, which collect light energy from the sun and convert it into electricity (i.e. photovoltaic modules)
- photovoltaic power conditioning equipment that receives the current from the photovoltaic array and converts it into alternating current for consumption or transfers it to the electric utility grid (i.e. inverters, transformers, meters, junction boxes, charge controllers, etc.)
- solar storage units (i.e. solar batteries)
- accessories (i.e. insulation, bolts, screws, mounting brackets, etc.
Note that all the components, especially accessories, cannot be standalone or function outside of the solar power system. Solar equipment is exempt-eligible if and only if it plays an integral and vital role in the system as a whole.