Solar Energy in Florida: Tax Credits and Incentive Programs
Solar energy offers many benefits, including offset utility bills and a minimized carbon footprint. Florida incentives, policies, and tax credits can help reduce the initial costs of solar installation for many residents. You can contact an experienced solar company with questions about maximizing incentives and installing a solar energy system at your home. Here is more information about Florida solar incentives and tax credits:
Federal Solar Tax Credit
Floridians can qualify to claim the federal residential solar energy credit. This tax credit allows homeowners to declare 30% of the solar panel installation cost on their federal income taxes. There are several requirements for claiming the tax credit, including being a homeowner, buying the solar photovoltaic (PV) system directly, and completing the installation within the tax year. Tax credit benefits may differ depending on income levels.
Florida Solar Property Tax Exemption
Because installing solar panels can improve your property’s value, Florida offers a 100 percent property tax exemption for owners using solar and add-on battery storage devices. This means that you’re exempted from additional property taxes due to your home’s increased value. Floridians can receive this benefit by installing equipment from an approved list, including solar PV systems, inverters, heat exchange devices, and independent thermal containers.
Florida Net Metering Program
The net metering program allows electric utility customers to earn credit on their electricity bills for any surplus power they produce and return to the grid. There are no capacity limits on excess power you can sell, optimizing your consumption offsetting capacity. Installing solar panels qualifies most owners for net metering. Ask your solar company if they can help set up the net metering process during your solar installation.
Some systems are incompatible with net metering. An off-grid solar panel system can optimize energy independence but lacks net metering benefits. Your solar company can help you choose a compatible solar energy system for compliance with this program.
Sales Tax Exemption
Florida’s Solar and CHP Sales Tax Exemption frees residents from solar systems sales and use tax. It also exempts residents from the typical six percent sales tax normally applied to solar panels. Certified systems are eligible for sales tax exemption regardless of capability or size. Suitable solar energy components may include solar panels, inverters and mounting parts, electric hardware, and energy storage units (solar batteries). Consult a tax expert or reputable solar system company for more information on qualifying systems and tax advice.
Local Utility Rebates
Floridians can access solar rebate programs from local electric cooperatives and municipal utilities. You can explore local guidelines to learn more about available financial incentives in Florida that you may qualify to receive. Here are some programs that may assist you in offsetting your system’s cost:
Florida PACE Program: This local government-ran financial incentive program applies to commercial and residential use. It enables property owners to finance energy improvements like water conservation or renewable energy production. The loan is paid through a special evaluation of the property over a fixed timeline. Consult your municipality to understand eligibility terms.
Florida Keys Electric Cooperative (FKEC) Solar Loan Program: This program provides a competitively priced loan for installing grid-tied Distributed Energy Resource (DER) systems. It’s applicable for residential and commercial members and must be repaid within 10 years. There is no penalty for paying off the loan early.
Consult a Solar Company Today
Going solar in Florida can help reduce your carbon footprint and qualify you for tax credits and incentives. Solar energy systems require low maintenance and can offer long-term savings and net metering benefits. Contact a reputable solar company today to install your solar energy system and start qualifying for the federal solar tax credit, sales and property tax exemptions, and more.
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