Florida, the “Sunshine State,” regularly tops the list of U.S. states for solar power. As per the data from the U.S. Energy Information Administration, Florida is the 6th leading state in terms of residential solar installations.
Remarkably, Florida has achieved this ranking even without a Renewable Portfolio Standard, a policy mandating utilities to obtain a certain percentage of their power from renewable sources. Despite the lack of this regulation, Florida outperforms many other states when it comes to the volume of solar installations, largely thanks to the array of incentives, tax credits, and policies available to its homeowners.
You may wonder, “What are these incentives?” Excellent query! Let’s delve into the key benefits that could potentially save Florida homeowners a significant amount of money on their solar energy system.
(Note: Please remember that eligibility for these benefits may be dependent on factors such as your geographical location, electricity provider, income bracket, whether you’re interested in battery storage, among others. This is not intended as tax advice, and you should always seek counsel from a tax professional.)
There are several incentives in place to encourage the use of solar electric or photovoltaic (PV) systems. These incentives vary by country and region, so it’s crucial to research the specific incentives available in your area.
1. Federal Solar Investment Tax Credit (ITC)
2. Florida Net Metering Program
Florida’s net metering policy is solidly established. Essentially, if your solar panels generate more power than you consume, the surplus is fed back into the grid, earning you credits from your utility provider.
When your solar panels yield more power than your current consumption:
When your power requirement exceeds what your solar panels can generate:
In Florida, all four major investor-owned utilities and several electric cooperatives offer 1:1 net metering. This means the value of the credit you receive equals the rate of electricity that the utility charges you. This is advantageous, as states without 1:1 net metering may compensate you less than the actual worth of your solar power.
These four utility companies include:
While municipal utilities and electric cooperatives are not regulated by the same legislation, many offer reasonable net metering credits. Palmetto collaborates with the four major utilities above and the following local utilities, with plans to expand operations to more in the near future:
3. Property Tax Exemption
In Florida, the added value to your home from installing a solar energy system is exempt from your property tax assessment. This means your property taxes won’t go up because you’ve added solar panels to your home.
4. Sales Tax Exemption
In addition to a 100% property tax exemption for residential solar panels, Florida law also exempts solar from its sales and use tax. According to the Florida Department of Revenue, the exemption applies to equipment and any component currently certified by Florida Solar Energy Center as a qualifying solar energy component. This may include:
For more information, please contact a tax professional for any and all information pertaining to tax advice.
5. PACE Financing
Florida’s Property Assessed Clean Energy (PACE) program helps homeowners finance solar energy systems and repay the costs over time through an assessment on their property tax bill.
6. Local Utility Rebates
Some local electric cooperatives and municipal utilities may also offer solar rebate programs not listed here. To explore every available financial incentive in Florida that can help offset the cost of your system even further, visit the Database of State Incentives for Renewables & Efficiency.
In order to determine if you are eligible for a Tax Credit, we suggest you reach out to your Tax Professional. As long as you own your solar energy system, you are eligible for the solar tax credit. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “roll over” the remaining credits into future years for as long as the tax credit is in effect. However, remember that if you sign a lease or PPA with a solar installer, you are not the owner of the system, and thus you cannot receive the tax credit.
Transform Your Energy Future with SeeMore Solar
SeeMore Solar is your local partner in this renewable energy journey. Join the growing number of homes and businesses in Southwest Florida that have made the switch to solar power. Together, we can create a brighter, more sustainable future for our community.
Start your solar journey today. Contact SeeMore Solar for a free consultation and learn how you can benefit from a solar electric system. With SeeMore Solar, you’ll see more savings, more sustainability, and more independence from grid power.