Florida solar incentives include the federal tax credit, multiple tax exemptions, local rebates and loan programs and even net metering. These incentives will help you save money on installation or recoup some of the investment; you’ll also want to research the best solar panel companies in Florida to ensure you’re getting the highest quality at the fairest price.
Federal Solar Tax Credit
While Florida doesn’t have a state solar tax credit, everyone across the country can take advantage of the federal solar tax credit. Officially called the Investment Tax Credit (ITC), this allows taxpayers to recoup 30% of their total solar panel installation investment when they file their taxes. For example, if your total investment is $20,000, you’d be able to claim a $6,000 tax credit come filing season.
The tax credit is nonrefundable, so if the credit is larger than your tax liability, you won’t get a refund. Instead, any remaining balance from the credit will roll forward to the next tax year until you’ve used it completely.
The Investment Tax Credit won’t last forever but is set to reduce to 26% for the 2033 tax year and then 22% for the 2034 tax year. If Congress does not renew the credit before then, it will expire starting in 2035.
Property Tax Exemption
Floridians who invest in solar panels should expect the value of their homes to increase. According to Zillow, solar panels increase home values by roughly 4%. Normally, this would result in higher property taxes.
However, Florida’s Property Tax Abatement for Renewable Energy Property program prevents property taxes from going up for solar water heat, solar photovoltaics, wind power generation and geothermal heat pumps, as well as lithium-ion storage technologies. This program will expire at the end of 2037.
Sales Tax Exemption
Similarly, residents of the Sunshine State don’t have to worry about paying a 6% sales tax on their solar system installation as part of the Solar and CHP Sales Tax Exemption program.
With an average cost of a 6 kW solar system in Florida amounting to $15,600, that’s $936 avoided in sales tax.
Florida Solar Panel Loans
Floridians who need help financing their solar panel installation have access to the state’s Property Assessed Clean Energy (PACE) loan program. Only two other states—California and Missouri—have this program, which allows you to finance solar installations and pay them back with your annual property taxes.
PACE isn’t the only program to finance Florida solar panels, however. SELF solar system loans are available to low-income families (no credit approval required) for $3,000 to $25,000 at fixed interest rates between 7.99% and 8.25% over three to 10 years.
In addition, Floridians may qualify for more localized loans, such as the:
- Florida Keys Electric Cooperative solar loan program
- Lakeland Electric interest-free solar loan program
- City of Tallahassee energy-efficiency loan program
Local Incentives for Solar Power in Florida
You can find many incentives for Florida solar power at the local level, depending on your city and utility company. One of the best is the Boynton Beach Energy Edge rebate program: Eligible households an qualify for a $1,500 rebate for installing a solar photovoltaic system that is 5 kW or larger and is greater than or equal to 17.5% efficiency.
Several utility companies also offer rebates for installing solar water heaters and solar attic fans.
Net Metering In Florida
Florida has a net metering program that allows homeowners with solar panels to sell excess electricity generated to utility companies, in exchange for credits on future energy bills equal to the retail rate of electricity. At the end of the year, the utility companies have to pay customers for any unused credits, but the rate for unused credits is lower than the retail rate.
Regardless, most Florida homeowners generating solar power stand to not only eliminate their electric bills but earn some cash at the end of each year.
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