FLORIDA SOLAR INCENTIVES AND REBATES
Florida, renowned as the "Sunshine State," is emerging as a significant player in solar energy adoption. With an anticipated installation of 11 gigawatts (GW) in the next five years, it stands as the fourth fastest-growing solar state. Currently, Florida ranks third nationwide with nearly 100,000 solar installations, showcasing its commitment to harnessing solar power.
To support this transition, both federal and state-level incentives are available to make solar energy more accessible and affordable. The federal solar investment tax credit is one such incentive, complemented by various state-level rebates and exemptions. By tapping into these incentives, residents can save substantially on the installation of solar photovoltaic (PV) systems, including those offered by reputable installers like Freedom Solar.
Embracing solar power not only aligns with Florida's abundant sunshine but also presents an opportunity for substantial cost savings and environmental stewardship.
Understanding Solar Incentives:
Solar incentives vary depending on your location. While federal incentives apply nationwide, states and local governments also offer a range of incentives, and some utilities provide additional benefits for their customers adopting solar energy.
These incentives can take various forms, including discounts on system installation, post-installation rebates, or tax breaks during annual filings. Combined, these incentives, rebates, and tax breaks can result in significant savings for homeowners, typically ranging from 30% to 50% of the solar system's cost.
Federal Solar Incentives:
Federal Solar Tax Credit: This credit allows homeowners to reduce their federal income tax by an amount equal to 26% of the final cost of installed solar energy systems on their property. The residential solar tax credit is available until December 31, 2022, after which it will gradually decrease to 22% in 2023 and expire for residential solar in 2024.
State & Local Solar Incentives:
State Tax Credits: Some states offer tax credits similar to the federal solar tax credit, enabling homeowners to deduct a portion of the solar system cost from their state tax bill. The credit amount varies by state.
Cash Rebates: Certain states and municipalities provide cash rebates for solar system installations. These rebates, typically available for a limited time, can reduce system costs by 10% to 20%.
Utility Solar Incentives:
Solar Renewable Energy Certificates (SRECs): In select states, utilities are mandated to generate a portion of their electricity from solar power. Homeowners with solar systems in these states earn SRECs for each megawatt-hour of electricity produced, which can be sold to utilities. This can lead to significant annual savings, depending on SREC market prices and excess energy production.
Net Energy Metering (NEM): Under NEM programs, utilities credit homeowners for excess electricity generated by their solar panels, which can be used when solar production doesn't meet demand, such as at night.
It's important to note that all financial benefits accrue to the solar system owner. If homeowners purchase the system outright or through a solar loan, they can capitalize on these benefits. However, if the system is third-party-owned or provided as a service, the benefits typically go to the third-party owner, who may pass down savings to the homeowner.