Florida shines bright on the map not just for its sunny beaches but also for its burgeoning residential solar market. With the Sunshine State ranking seventh in the nation for solar installation, it's an exciting time for homeowners looking to harness the power of the sun. This comprehensive guide to Florida's Solar Tax Credits, Incentives, and Rebates is designed to illuminate the path for residents eager to make a smart, sustainable shift. Whether you're contemplating your first solar panel installation or looking to maximize your existing system's benefits, this guide promises to be your beacon through the ins and outs of going solar in Florida. Cost of Home Solar Power in Florida Installing a solar panel system in Florida will typically cost around $3.31 per watt, translating to roughly $16,550 for a standard 5-kilowatt (kW) system. This is slightly above the national average of $2.85 per watt, or $14,250 for a similar system. However, the good news is that Florida offers a helping hand. Thanks to the 30% federal tax credit, the net cost of your 5 kW system drops to a much more manageable $11,585. Additionally, Florida throws in some sweet perks like sales tax and property tax exemptions for solar systems, further sweetening the deal. Considering Florida's abundant sunshine, you can expect a 5 kW system to produce around 7,500 kilowatt-hours (kWh) of clean energy annually. With the state's average electricity rate hovering around 15.51 cents per kWh, this translates to potential savings of $1,163 on your yearly power bill. That's putting sunshine to work for you! Florida Incentives & Loans The Solar and CHP Sales Tax Exemption Incentive value: Applies to the Florida sales tax or 6% of solar photovoltaic (PV) system costs Frequency: One-time Program: https://programs.dsireusa.org/system/program/detail/243 Florida incentivizes the adoption of renewable energy sources by offering a permanent sales tax exemption for qualified solar photovoltaic (PV) and combined heat and power (CHP) systems. This exemption applies to the retail cost of these systems, resulting in a direct cost reduction of 6% for both residential, commercial, and agricultural properties. There is no size limitation for qualifying systems, ensuring accessibility for projects of all scales. Additionally, claiming the exemption is a streamlined process. Simply ensure your chosen equipment is certified by the Florida Solar Energy Center. No further paperwork or applications are necessary, minimizing administrative burdens for those transitioning to renewable energy. Property Tax Abatement for Renewable Energy Property Incentive value: Your property taxes won't increase even if your home value goes up because of your solar panel system. Frequency: Active until December 2037 Program: https://programs.dsireusa.org/system/program/detail/5426 Estimated Savings: Varies depending on your county's property tax rate. However, the potential savings can be significant. How to claim: It's automatic! Thanks to the Property Tax Abatement for Renewable Energy Property, the increased value of your home due to solar panels is excluded from your property tax assessment. Florida Residential PACE loans Incentive value: Varies Frequency: Ongoing Program: floridapace.gov/about-pace Worried about the upfront cost of solar installation? Florida offers a unique financing option – Property Assessed Clean Energy (PACE) loans – that can help you make the switch without a hefty upfront payment. Unlike traditional loans, PACE allows you to finance the entire solar panel installation. Here's how it works: No Down Payment Needed: With a PACE loan, you avoid the initial financial hurdle of purchasing solar panels. The loan amount is secured by a lien on your property, similar to property taxes. Convenient Repayment: You'll repay the loan over an extended period, typically 5 to 20 years, through a designated line item added to your property tax bill. This simplifies budgeting and makes the payments predictable. Join the Sunshine State's Solar Movement: PACE loans join Florida's existing sales and property tax exemptions for solar systems, making the transition to clean energy even more attractive. Florida SELF loans Incentive value: Varies Frequency: Ongoing Program: floridapace.gov/about-pace Unlike traditional lenders, the Solar and Energy Loan Fund (SELF) makes solar power accessible to underserved communities. They offer attractive financing for solar installations, with fixed rates between 6.99% (for special promotions) and 8.25%. Loan amounts range from $3,000 to $25,000, spread out over terms of 3 to 10 years. Best of all, SELF doesn't require a minimum credit score or income, just responsible ownership (current property taxes and recent mortgage payments). So if you've been priced out of solar before, SELF might be your sunshine solution! Image Source: Florida Power & Light Florida Net Metering What is Net Metering Net metering is a system in which utilities and their customers, who generate their own electricity (for instance, through solar panels), enter into an agreement. This setup includes residential, commercial, or industrial energy producers. When these consumers generate more electricity than they consume, they can sell the surplus back to the utility company, receiving credits on future bills. Essentially, for every kilowatt-hour (kWh) of solar energy that a home does not use and instead feeds back into the grid, the utility company credits the consumer, leading to lower electricity bills. Florida’s Net Meter Program Florida's net metering program was adopted by the Florida Public Service Commission (PSC) in 2008. They adopted rules for net metering and interconnection for renewable-energy systems up to 2 MW in capacity for investor owned utilities and also required municipal utilities and electric cooperatives to offer net metering without stipulating standards. Net Excess Generation Customer net excess generation (NEG) is carried forward at the utility's retail rate (i.e., as a kilowatt-hour credit) to a customer's next bill for up to 12 months. At the end of a 12-month billing period, the utility pays the customer for any remaining NEG at the utility's avoided cost rate. Some of Florida’s Net Metering Utility Partners FP&L Tampa Electric Company Duke Energy Federal Rebates Federal Solar Tax Credit The Federal Solar Tax Credit, or the Investment Tax Credit (ITC), is a national incentive allowing individuals to obtain a tax credit for the costs associated with installing solar panels. This program offers a 30% deduction from the total expense of their solar system to the owners. For example, if you buy a 10 kilowatt (kW) solar system for $33,000, you qualify for a tax credit amounting to $9,900. Let US Solar Supplier Help You Save on Your Next Project Let US Solar Supplier help guide your sourcing, installation, and logistics of your next renewable energy project. Consult with us today to find the perfect system for your needs. Resource Section https://www.marketwatch.com/guides/solar/florida-solar-incentives/ https://www.energysage.com/solar-panels/fl/
