Florida residents will be happy to find that multiple advantages and incentives can reduce the cost of installation for their rooftop solar panels. With the year coming to a close, it is essential to make the most out of the savings. While there is still time, let’s take a moment to look at these advantages.
You can save money on your Florida residential solar installation by taking advantage of the following five incentives:
- Federal Solar Tax Credit
- Florida Property Tax Exclusion for Residential Renewable Energy Property
- Florida Solar and CHP Sales Tax Exemption
- Net Metering Program
Federal Solar Tax Credit
The Federal Solar Tax Credit, or more formally known as the Investment Tax Credit (ITC), is the most substantial tax incentive for residential installations. The ITC Tax Credit allows homeowners to reduce their federal taxes equal to 26% of the solar investment cost. Time is running out on the full 26% savings rate, as the final day to receive the entire amount of tax credit is December 31st, 2020. As of January 1st, 2021, the ITC rate will decrease from 26% to 22% of your household’s Solar investment. After the 4% reduction, 2022 will see a drastic decrease to just 10% the following year. To learn more about the ITC Tax Credit, check out our blog here.
Florida Property Tax Exclusion for Residential Renewable Energy Property
Florida will abate the increased tax that comes along with the inevitable increase in property value. This Law means your property taxes won’t rise because you’ve upgraded to Solar Energy. This incentive doesn’t expire until December 2037. So, if a homeowner decides to move, their property value increases. They won’t be stuck with the additional taxes attributed to the Solar investment. On average, the residential property value will increase by nearly $15,000 after a solar installation. This is another financial value that will be protected through this program.
Florida Solar and CHP Sales Tax Exemption
In 1997, Florida had enacted the Solar Sales Tax Exemption. Residential households could see savings of up to 6% by converting to Solar. This is a permanent tax exemption. Floridians who have taken advantage of this exemption would put up 6% of their state’s taxes. Residents in Florida have every opportunity to take advantage of the tax credits, exemptions, and incentives of switching to Solar Energy.
Net Metering Program
NEM, or Net Energy Metering, is a program offered in Florida and many other states. Duke Energy, as well as Florida Power and Light, provide net metering. This is the most significant incentive to be taken advantage of. Net metering is as much a process as it is an incentive. It is an exchange of energy for credits with an electrical grid operated by a Utility company. The credits are based on the number of kilowatt-hours produced by your solar system, which can then be used later. Commonly, this takes place when the household’s energy consumption exceeds the solar energy that the household produced. The system owner will only be billed as a “net” amount of the energy used. Virtually, homes can be powered, day or night, by the solar energy that is converted and produced during the day.
Now Is Your Time to Switch To Solar
If you’re considering making the switch to solar, you need to act sooner rather than later for many reasons. This includes the Solar Tax credit being reduced from 26%, preventing your utility bill from increasing with inflation, and living in freedom from monopoly utility companies. With excellent programs like Net Metering, homeowners who go solar can see savings right away. There has never been a more affordable time for Florida residents to make the switch to solar. If you’re interested in learning more, contact RegionSolar to receive a free quote today.
Sunrun. “Florida Solar Incentives: Florida Solar Rebates and Tax Credits.” Sunrun, Sunrun, 13 Oct. 2020, www.sunrun.com/solar-by-state/fl/florida-solar-incentives-rebates-tax-credits.
“Sunshine State Sheds Light On How To Incentivize Solar Energy.” Region Solar, 3 Sept. 2020, regionsolar.co/sunshine-state-sheds-light-on-how-to-incentivize-solar-energy/.
“What Is NEM?” Region Solar, 30 Aug. 2020, regionsolar.co/what-is-nem/.