Residential Solar Companies

Solar has become more affordable over the past decade. However, for those who want to reduce their electricity bills, it is still a significant investment. To encourage more adoption of solar energy, federal, state, and local governments, and even some residential solar companies, offer incentives for solar roofs. This allows homeowners to have clean, affordable, and easily accessible energy. These savings can be in the form of tax incentives, rebates, or performance-based incentives. They can reduce solar costs by anywhere between 30 and 50 percent.

Florida’s policies on solar have fallen behind those of other states. It has no renewable portfolio standards and does not allow power-purchase agreements, which are two policies that have driven investments in solar in some states. However, utility investments in clean energy and other recent developments are causing significant growth.

Solar Power in Florida

Florida has an average of 230 sunny days a year. It’s not just the sunshine that makes Florida a great place to install solar panel systems. There are additional incentives in Florida to reduce the initial cost. Right now, solar power accounts for less than 5% of Florida’s electricity. However, this will change as residential solar companies invest in solar panels and costs decrease.

 

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Florida Solar Panel Costs

Before rebates and incentives, the average cost to install a 5kW solar panel system is $13,000. Installing a smaller 3kW solar panel system can cost as little as $8,000, while a larger 10kW system might cost up to $25,000.

The estimated payback period for a 5kW solar panel system is more than 10 years. In a decade, the homeowner will have recovered the cost of the solar panels and can then start saving money on their utility bills.

Residential Solar Companies

Why the Investment Tax Credit is the Best Solar Incentive

The federal investment credit (ITC), which provides 30% of the cost of a solar installation as a tax credit, is by far the best solar incentive. A tax credit is a direct offset to the taxes that would have been owed. The federal ITC does not just tax you on your lower income; it offsets the taxes owed and can even be refunded to homeowners if they overpaid their taxes. Here are some details:

2016-2019: Energy tax credits remained at 30% of the cost of a system.

2020-2021: Owners of new solar systems for residential or commercial use will receive a tax credit equal to 26 percent of their system’s cost.

2022-2032: New residential solar system owners can receive a 30% credit on their tax bill. Commercial solar systems are also eligible for the 30 percent credit until 2025. At that point, the U.S. Department of Treasury decides if ITC will continue for residential solar companies.

2033: New residential solar owners can receive a tax credit of 26% of their system’s installation costs.

2034: New residential solar owners can receive a tax credit of 22% of their system’s installation costs.

Starting this year, there is no federal tax credit for solar energy systems installed in residential homes.

Florida Solar Rebates and Tax Credits

In Florida, there are no statewide solar panel rebates because the state does not charge sales tax. However, tax credits can make installation more affordable.

  • Sales Tax Exemption: Florida’s Solar & CHP Sales Tax Exemption exempts residents from paying the 6% sales tax on solar panels.
  • Property Tax Exemption: Normally, adding value to your home increases your tax bill. However, solar panels are exempt under Florida’s Property Tax Exclusion on Residential Renewable Energy Property.
  • Net Metering: This important policy allows Florida solar homeowners to sell excess solar power back to the grid. However, these incentives are not guaranteed to last. In March 2022, Florida lawmakers passed a bill to phase out net-metering incentives between 2029 and 2035, despite a survey showing that 84% of residents support net-metering.

Benefits of Going Solar

ESD Solar‘s panels have many advantages:

  • Environmentally Friendly: Solar panels are a great way to generate electricity using a renewable source of energy.
  • Low Maintenance: Solar panels require little effort to maintain.
  • Cost Savings: Solar panels have an average payback period of 10 years. After this, the monthly savings on utility bills will go directly into your bank account.
  • Net Metering: Residential solar companies allow net metering, so solar panel owners can earn additional money by selling unused energy back to a utility.
  • Clean Energy: Solar panels are a great way to generate clean energy from the sun’s rays. They help reduce electricity costs and generate electricity for free.
  • Environmental Benefits: Solar energy is renewable, clean, and beneficial to the environment. Installing solar panels can reduce carbon emissions and help create a sustainable future.

Residential Solar Companies

Solar Rooftop Potential

The number of roofs in the country that are suitable for solar energy depends on their size, orientation, shading, and location. Rooftop potential does not equal the market or economic potential of rooftop solar. It doesn’t take into account cost or availability.

The solar rooftop potential of a roof is the maximum amount of solar panels that can be installed based on factors such as its size, shade, tilt, position, and construction. Installers use satellite maps, data on irradiance, equipment specifications, and other factors to inform their bids and help customers understand the costs and benefits of solar panels.

According to NREL analysis, in 2016, over 8 billion square meters of rooftops in the U.S. could be fitted with solar panels. This represents over 1 terawatt in potential solar power. Rooftop potential is increasing due to improvements in solar conversion efficiency. About 65% of rooftop potential in the United States is on residential and small rooftops, and 42% of these rooftops belong to households with low or moderate income.

NREL estimates an average of 3.3 million homes will be built or roofs will need to be replaced per year, which represents a potential 30 gigawatts of solar capacity each year. Even fitting a small percentage of these roofs with solar panels would have a major impact on the U.S.’s solar power production.

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