Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Are powerwalls purchased with a solar system exempt from sales tax in Florida?

This site may earn commission on affiliate links.

BrettS

Active Member
Mar 28, 2017
2,155
2,575
Orlando, FL
So I’m in Florida and my 15.12kW solar system with 4 powerwalls has been installed and I’m waiting for inspection and PTO. I looked at my contract this evening and I noticed that the line item for the powerwalls read “Powerwalls and tax”. Unfortunately it’s one line item, so I can’t see how much tax is being charged (or even if they are charging tax), but I had thought that battery storage as part of a solar system was exempt from tax in Florida. I tried to google it and found this on sunrun’s web site:

Florida’s Solar and CHP Sales Tax Exemption is a welcome addition to the other incentives available in the Sunshine State. That means you can pocket the extra 6% state sales tax you would normally pay when you buy a home solar system and battery.

I’m going to try to call tesla tomorrow to see how much tax they are trying to charge, but does anyone know if the powerwalls should be tax exempt?

The contract does not show any tax for the solar portion of the install.

Thanks
 
Hi. I'm curious if the power walls can start and power a central AC. I have spoken to 2 non-Tesla installers that say they can't.
This probably deserves its own thread, and there are a lot of questions and opinions on this. The short answer is yes, with enough PWs, it can start an A/C. The number depends on the size of the unit, and, depending on the type of unit there may be ways to reduce the number of PWs by adding softstart/surestart devices.
 
  • Like
Reactions: jjrandorin
Hi. I'm curious if the power walls can start and power a central AC. I have spoken to 2 non-Tesla installers that say they can't.

Hi,

That is a serious piggyback type question in an unrelated thread, since this thread is about "tax in florida on powerwalls"....

With that being said....

The TL ; DR version of the answer to that is "if you buy enough powerwalls, yes they can".

The "slightly" longer answer is, with 1 powerwall you are not starting any AC, and 2 powerwalls would fully depend on the AC unit(s) you have, their LRA starting needs etc.

So, yes, powerwalls can start AC compressers, depending on the TYPE of AC compressor, how many powerwalls etc. But in general, 2 powerwalls generally require the AC to be compatible for some sort of "soft start" device, and they may or may not be compatible with that.

if its really important to you to start your AC with powerwalls, either do a LOT of research on which ones you have, or throw more powerwalls at the problem.
 
  • Informative
Reactions: jbcarioca
Power walls are exempt from the Florida sales tax. I just purchased a large pv system along with 2 power walls. paid no sales tax. I did have to remind them to remove the taxes as they did have it in there at first. they will also send you a form that you sign regarding the sales tax exemption. on the side note of a/c and power walls. i'm doing a whole home with two power walls. i do have a brand new house with a 84LRA 3 ton ac that will have no issues when they put the soft start on it.... the issues i think start when you are using older compressors and units that are way over the starting capacity to begin with and require the sure start to drop the initial inrush significantly and that is where you run into issues.
 
Hi. I'm curious if the power walls can start and power a central AC. I have spoken to 2 non-Tesla installers that say they can't.
By definition they can, if you have enough batteries to do that. IME, from multiple solar installations, people assume any high usage device cannot be done. It is just a matter of scaling. Whether the economics work is up to the buyer.

FWIW, I have listened to ‘experts’ tell me my solar project were ‘impossible’ or ‘impractical’ for nearly 30 years. The solution is to carefully calculate your expected usage by season and peak periods, then size your system to see what your probable economics will be. Since you are grid-connected the reserves can be pretty low, just enough to allow coping with power outages or minimize use of peak pricing periods.

Whatever you do don’t accept the sellers assumptions without checking them very carefully yourself.

In my opinion these decisions are analogous to BEV vs ICE. Pure economics is one metric, desire is another. Desire includes contributing to survival of the human species.

Tesla does make the entire process very easy with Powerwalls. One major factor is almost never discussed. That is that Powerwall output is “Pure Sine Wave”. That means the power output is cleaner and more stable than any grid power. If you set up your system to use only Powerwall output while recharging from both Solar/wind/hydro and grid, you’ll end out with electrical supply that will have everything run more quietly and last longer. That benefit is largely ignored, but does have both economic and environmental benefits.

Many, probably most, commercial inverters have square wave output because that makes the equipment cheaper and they assume clients will not know the difference. Tesla, as usual, does theirs in what I consider to be the ‘right’ way.

As investors we tend not to see such apparently minor points. In fact, a core value evident in all Tesla products is to do everything electrical and electronic in the best way they can. In the long run that is the least costly way.

Thus, size you system correctly, feed all power from a Powerwall directly and your A/C will run more quietly and efficiently, so last longer. To do this efficiently you can have 220 output Powerwall(s) for heavy loads and 120 output for those loads. Few domestic users tend to do that but that will provide an excellent result in a house. Were I doing such a job today I would do it that way.

Capital cost will be higher than other options, but you’ll end out with quiet, long lived energy consuming devices. As others have mentioned the A/C should have ‘soft start’ which nearly all the highly efficient ones do. If yours does not have that feature you’ll might save money by upgrading anyway.
 
Well, just to follow up on this, I called tesla and they said that I was indeed incorrectly charged $1136.50 in tax on my powerwalls. They said that because my panels are financed and my install is already in progress they will send a check in the amount of $1136.50 as a rebate after I get my PTO.
 
Good catch BrettS; glad that it is working out in your favor.

My initially signed contract had the same issue, but fortunately for me the local install manager reviewed my order prior to scheduling the install and pointed out to me that the invoice included tax when it shouldn't have.

There was no way in my individual contract and I assume anyone else's contract to know if tax had been incorrectly added or not. The "Powerwall and Tax" line obscures too much information. It took a few calls with an Advisor to get the contract corrected near the time of the install.

After the last call on the matter the Advisor shipped me another document. A copy of which is here:Florida TIP

Once is an accident, twice though...... to anyone with Powerwalls installed in Florida, it might be worth a quick phone call to a Tesla Advisor to check the details behind that line item in your contract. The correction to my contract was ~$1300.
 
And one more follow up. I got a notice yesterday afternoon that there were some new documents in my account that needed my signature. There was the Florida TIP document as well as a whole new contract to sign. Instead of sending a rebate after the install they just rewrote the contract. Interestingly, they not only changed the tax amount, but they also incorporated the June price drop into the new contract, so instead of sending me a rebate after the install for the price drop difference my contract has been adjusted. I also got a loan agreement modification from mosaic to sign this morning showing that my loan amount has been lowered by the amount of the price drop and the taxes.

The other thing that I thought was kind of interesting was that it was still showing about $70 in taxes on the new contract. I called and asked about it and they said that the gateway and the conduit is still taxable. I’m not quite sure I agree with that interpretation. The TIP document linked above that I had to sign says:

The term “solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity.

It certainly seems like the gateway and conduit would qualify as equipment and requisite hardware, but I’m not sure it’s worth fighting for $70 on a $54k install.
 
So I was reading through that TIP document and I noticed this at the bottom:

79EECCE5-B1EF-45CF-9540-4F6B808AB1F8.jpeg

So it seems that I still have to pay tax on the solar cells in my 99 cent solar calculator:(