2023 has brought a plethora of benefits for Florida residents and businesses interested in solar energy. The federal government and the state of Florida offer several incentives to encourage the adoption of solar energy. These incentives not only make solar energy more affordable but also contribute to the state’s environmental sustainability goals.
Federal Solar Investment Tax Credit
The Federal Solar Investment Tax Credit (ITC) is a significant incentive for solar energy. This credit allows homeowners and businesses to claim a percentage of the cost of solar panels, including labor costs, energy storage devices, and more, on their tax returns. The ITC was recently extended through the 2022 calendar year, allowing homeowners to claim 26% of the cost of solar panels installed within the year. However, under the Inflation Reduction Act passed in 2022, the tax credit was set to 30% and will remain there until 2032. This means you can get a tax credit worth 30% of the cost to go solar. This includes the cost of solar panels, wires, mounting equipment, converters, labor, and any related taxes and permits.
Florida Solar Rebates and Tax Benefits
While there are no statewide solar panel rebates in Florida, tax credits can make the installation more affordable. Under Florida’s Solar and CHP Sales Tax Exemption, Floridians are exempt from paying the 6% sales tax on solar panels. Additionally, Florida’s Property Tax Abatement for Renewable Energy Property incentive is currently set to run through 2037. With this incentive, homeowners are 100% exempt from paying property taxes to improve their homes with solar panels.
Net Metering in Florida
Net metering is a program in Florida that allows utility customers who generate solar energy through solar panels to sell Renewable Energy Credits (RECs) back to the solar company. These credits can be applied to energy bills within the next 12 months or paid out. However, these incentives may not last forever. In March 2022, Florida lawmakers passed a bill that would phase out net metering incentives by 2029.
Local Incentives in Florida
For residents in certain parts of Florida, local incentives for solar panels lead to even more savings. For instance, the Energy Edge program in Boynton Beach offers a maximum rebate of $1500 per property to install energy-efficient improvements, including solar panels. The Florida Keys Electric Cooperative Solar Loan Program offers approved members loans of up to $35000 to install solar panels.
Solar Tax Benefits for 2023
The incentives and tax benefits for solar available for Florida residents and businesses are substantial. These incentives, coupled with the environmental benefits of solar energy, make it an attractive option for those looking to reduce their energy costs and contribute to a more sustainable future. However, it’s essential to do thorough research and possibly consult with a tax professional or solar energy expert to understand all the potential benefits and implications fully.
State Solar Tax Credits
In addition to the federal solar tax credit, Florida also offers a variety of state-level incentives for businesses that invest in solar energy. These incentives vary by utility company and are subject to change, but a few examples include:
- Duke Energy’s Solar Rebate Program: Duke Energy offers rebates for businesses that install solar panels on their buildings. The rebate amount varies depending on the size of the solar panel system, but businesses can receive up to $50,000 in rebates.
- Florida Power & Light’s SolarTogether Program: Florida Power & Light’s SolarTogether program allows businesses to subscribe to a shared solar program, which enables them to purchase solar energy without the upfront cost of installing solar panels on their buildings.
- Tampa Electric’s Renewable Energy Programs: Tampa Electric offers several renewable energy programs, including a solar photovoltaic (PV) rebate program that provides rebates for businesses that install solar panels.
Business owners who install solar panels on their buildings are also eligible for accelerated depreciation through the Modified Accelerated Cost Recovery System (MACRS). This allows businesses to depreciate the cost of the solar panel system over a period of five years, which can further reduce their taxable income.
Finally, Florida businesses can also benefit from the state’s net metering policy, which allows them to sell excess electricity generated by their solar panel systems back to the utility company at the full retail rate. This can result in additional savings on the energy bill.
In conclusion, there are several tax incentives available for Florida business owners who invest in solar energy. The federal solar tax credit, state-level incentives, accelerated depreciation, and net metering can all help offset the upfront costs of installing solar panels on buildings. Additionally, by investing in solar energy, businesses can reduce their energy costs, lower their carbon footprint, and promote a more sustainable future.