AN UP-TO-DATE GUIDE ON FLORIDA’S MANY SOLAR INCENTIVES
Florida is still one of the best states in the country for solar incentives. With an average of 240 sunny days per year in the Sunshine State, it’s easy to see why! Thanks to abundant sunlight, Florida residents and businesses can also take advantage of the numerous federal and state incentives offered to solar adopters. From solar tax credits to net metering programs, West Bay Energy can help you maximize your savings with the best available solar incentives.
INFLATION REDUCTION ACT
Part of the Inflation Reduction Act passed in 2022 was a substantial overhaul of the solar Investment Tax Credit (ITC), now called the Residential Clean Energy Credit. Before recently passed legislation, existing federal tax credit programs for solar had begun to be phased out. However, with the Inflation Reduction Act, the country’s solar tax credit program’s value was renewed for a 12-year period. According to the legislation, those installing new solar panels can receive a tax credit for up to 30% of the installation cost. The value of these credits will remain until 2033 when they will drop to 26%, 22% in 2034, and end in 2035.
Net Metering Programs
Solar installation isn’t the only area you can save when investing in solar energy production. Florida offers some excellent net metering programs throughout the state, allowing Florida homeowners to receive credit for the solar energy they produce but don’t use. Here’s how it works:
- While your solar system produces electricity, anything you don’t use is returned to the grid.
- That energy is then redispersed amongst other local homes and businesses.
- Your local utility company will compensate you based on the extra energy you produce, applying credits and money savings to your monthly energy bill.
- If solar production is less than the energy you use, any remaining energy you need will be pulled from the grid. Any previously earned credits will be applied to what energy “borrowed” from your utility provider.
By the end of the month, you’ll only pay your electric company for net usage, which is the difference in energy produced by your panels and energy used from the grid. In many cases, homeowners or businesses drastically reduce their electricity bills, sometimes eliminating costs completely. Florida’s leading utility companies offer 1:1 net metering, meaning you receive credits that are the same value as the electricity rate charged to you.
Tax Exemptions
Florida is the only state in the country to offer a 100% property tax exemption for residential solar panels and additional energy storage devices. For homeowners, this means a new solar system will raise the value of their home without increasing the property taxes they pay. In addition to the property tax exemption, Florida residents can also take advantage of a solar sales tax exception. For solar equipment and parts certified by the Florida Solar Energy Center, buyers won’t have to pay extra in sales taxes!
ADDITIONAL PROGRAMS
& INCENTIVES
In truth, there are more solar incentives in Florida than West Bay Energy can list on this page! Numerous local electric co-ops and municipal utility companies offer their own unique incentives for homeowners and businesses switching to solar. If interested in these programs and if they’re available in your area, visit the Database of State Incentives for Renewables & Efficiency or call West Bay Energy directly!