Guide to Florida Solar Incentives
The fight for cleaner energy and a better future for tomorrow is being hard-fought on many fronts around the country. Many states are offering incentives, tax breaks, rebates, credits, and other government subsidies to residents who choose to pursue renewable energy options – and Florida is no different. Here’s everything you need to know about Florida solar incentives.
The Federal Solar Tax Credit
The Federal Solar Tax Credit, also known as the Residential Clean Energy Credit, is available to most Florida residents. It allows homeowners to deduct as much as 30% of their federal income taxes for solar panel installation costs. Many Florida homeowners also use battery storage in conjunction with their solar panels. Energy storage systems are also eligible for the Residential Clean Energy Credit.
Florida Net Metering Program
Florida residents who have solar panels installed are eligible to receive net metering. You can earn credit towards your electricity bill by using net energy metering, which is an innovative billing system.
If your solar panels produce more power than you use, the excess electricity is sent by the electricity grid for use in other homes or businesses.
You are compensating the utility company for the need to produce this amount of electricity. They compensate you with bill credits.
You will require more power if your solar panels fail to produce. Instead, your electricity will be supplied by the grid. Your electricity provider will track how much electricity you use, and then charge you for that amount. Credits earned previously are not included in the calculation.
Your electricity provider will charge you only for the net amount used at the end of each month. This is the difference between the electricity generated by your panels and the electricity that you use.
All four Florida investor-owned utility companies, as well as several electric cooperatives, offer 1:1 net metering. The credit has the same value as the electricity rate that the utility charges. This is a great thing because states that don’t offer net metering can give you less than what your solar power may be worth.
These four utility companies are:
- Florida Power and Light (FPL)
- Duke Energy
- Tampa Electric Co. (TECO)
- Gulf Power
Property Tax Exemption
Going solar in Florida can boost the value of your house. Florida is one of many states that offers a 100% exemption for residential solar panels and any battery storage devices. This means that although your home value may increase, you won’t pay any additional property taxes because you got solar panels installed.
Sale Tax Exemption
Florida law exempts solar energy from sales and uses taxes. This exemption includes a 100% property tax exemption on residential solar panels. The Florida Department of Revenue states that equipment and any component certified by the Florida Solar Energy Center to be a qualified solar energy component are exempted from the sales and use tax. This could include
- Solar panels
- Mounting hardware and inverters
- Electrical equipment, including disconnect switches and wiring
- Energy storage unit (solar battery)
- Other accessories necessary for function
Rebates for Local Utility Services
There may be solar rebate programs offered by local electric cooperatives or municipal utilities that are not listed here. Visit the Database of State Incentives for Renewables and Efficiency to explore all financial incentives available in Florida.
Consider ESD Solar as Your Florida Solar Company
Solar doesn’t need to be difficult. ESD Solar offers clean and renewable energy. We won’t leave you in the dark. We want everyone to be their own provider of clean energy, reduce their carbon footprint and save money on electricity. If you are considering going solar, contact us to receive a free instant quote today from ESD Solar.