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Want to go solar in Florida?
We’ve got some great news for you!
The Sunshine State offers a wide range of benefits to Floridians looking to power their home with the sun.
In addition to reducing your carbon footprint and saving on utility bills, Florida is jam-packed with other ways residents can save money on their system installation.
Let’s dive right in!
Federal Solar Tax Credit
The Federal Solar Tax Credit is a tax incentive offered on the federal level to incentivize homeowners to go solar. It promotes adopting renewable energy in the home by reducing tax liability, allowing you to lower your tax bill in exchange for switching to powering your home with the sun.
The federal Investment Tax Credit allows you to deduct 30% of your cost of going solar from your federal taxes — including labor, materials, labor, and installation expenses. In August 2022, the ITC was increased to 30% for any installations completed between 2022 and 2032.
It’s essential to understand the specific requirements you must fulfill in order to qualify. For example, this tax credit only applies if you purchase your PV system directly — not if you finance or lease it.
In addition, consider your income level. The tax credit’s financial incentives can vary based on how much money you make. Higher-income people may see less or no benefit from this tax credit.
The more money you save on your initial investment through tax breaks and incentives, the sooner you’ll get through your solar payback period.
Florida Solar Incentives
Now let’s talk more specifically about Florida. Since 2019, Florida has been among the top 3 states to go solar in.
On a statewide level, the Sunshine State has plenty of incentives to go around.
Let’s take a closer look:
Solar and CHP Sales Tax Exemption
In July 1997, Florida began a sales tax exemption for solar energy and CHP (combined heat and power) systems. Initially, this incentive was slated to be offered for five years but has since become permanent.
As a result of this tax exemption, Floridians don’t need to pay sales tax on the purchase of solar energy systems — regardless of the system’s size. To qualify, the Florida Solar Energy Center must have certified the equipment used.
Getting the sales tax exemption isn’t complicated. The 6% sales tax simply isn’t charged in Florida when you purchase an eligible system.
Property Tax Abatement for Renewable Energy Property
Floridians can also take advantage of Florida’s Property Tax Abatement for Renewable Energy Property incentive. It’s currently available through 2037 and makes homeowners 100% exempt from property taxes for improving their homes using solar panels.
Florida Net Metering
Net metering in Florida enables electric utility customers to offset the amount of energy they consume using the excess power they generate with solar. The Florida Net Metering program credits customers on utility bills for excess electricity generated.
Not only that, but Florida has no limits on the capacity of electric surplus you can sell back to the electric grid. None of that extra power you generate will go to waste.
Not every system is compatible with net metering. For example, you might opt to connect your solar panels to an off-grid whole home generator for increased energy independence. Generating solar electricity off-grid protects you from extreme weather events, fluctuating fuel costs, and aging infrastructure.
How Much Can You Save on Solar in Florida?
Like many things, the answer to this question is: it depends.
How much money you can save by going solar in Florida depends on numerous criteria, but overall system cost is the primary determining factor.
Many government solar incentives depend on reducing your tax liability by a percentage of the entire cost of your solar investment or a sales tax exemption. The more costly your system is, the bigger the dollar amount savings.
Keeping available incentives in mind, find the best solar power system that falls within your budget and meets your unique needs,
Thanks to the sales tax exemption in Florida, you can save on the 6% sales tax that would otherwise be tacked on to the purchase price. You’ll also be able to reduce your tax liability by 30% of the total cost of your solar system as a result of the Federal Solar Tax Credit.
Finally, how much solar power you generate and the electricity you consume in your home will impact how much surplus solar energy you produce. If you sell this back to the grid using net metering, that is another opportunity for savings.
Calculate how many solar panels you need to power your home — you can sell any excess electricity you generate back to the grid to further your savings!
The return on investment of a solar system will vary from one household to the next, but the benefits are well worth it!
Frequently Asked Questions
Yes, Florida offers tax incentives for those who want to go solar. Floridians can take advantage of the Federal Solar Tax Credit as well as state-specific programs, including the Solar and CHP Sales Tax Exemption and the Property Tax Abatement for Renewable Energy Property incentive.
If you’re interested in going solar, Florida is one of the best places to do it. Not only is there plenty of sunshine in the Sunshine State to convert into electricity, but Floridians can also save money on their solar system installation through the Federal Solar Tax Credit and state-level programs such as the Property Tax Abatement for Renewable Energy Property incentive and the solar and CHP Sales Tax Exemption.
Going solar offers many benefits, including reducing your carbon footprint and saving money on utility bills. The state of Florida takes the benefits a step further by providing incentives to help residents offset the initial investment in solar power. Programs include the Solar and CHP Sales Tax Exemption and the Property Tax Abatement for Renewable Energy Property incentive. These state-level incentives are in addition to the Federal Solar Tax Credit, which can reduce the cost of switching to solar by 30%.
If you want to harness the power of the sun, the Sunshine State is one of the best places to do it.
Floridians can benefit from numerous programs to help offset the initial cost of investing in solar power and enjoy the multiple advantages of harnessing solar energy, including reducing (or eliminating utility bills), helping combat climate change, and more.
Want to take the first step toward switching to solar today?