The Sunshine State is highly effective for harnessing solar energy. And we all know by now the benefits of solar power including lowered energy costs while protecting the environment.
Luckily, there are many incentives, tax exemptions, credits, and financing options available to lower the upfront costs for Floridians who are looking for solar financing options.
Cash Purchase
When you buy solar paneling outright, you can take advantage of federal and state tax credits. For example, the federal government offers a tax credit known as the Investment Tax Credit (ITC). With the ITC you can regain up to 30% of your solar panel installation costs when you file your taxes.
Florida offers a property tax exemption for those who invest in solar. By installing solar you can expect your home’s value to increase, which normally would result in higher taxes. However, the Florida Property Tax Abatement for Renewable Energy program prevents your property taxes from increasing when you install solar for your water heater, photovoltaics, wind power generation, or geothermal heat pumps. The exception also includes lithium-ion storage technology.
Want more? In addition to the property tax abatement, Florida offers the Solar and CHP Sales Tax Exemption, eliminating any sales tax on solar systems installation.
Solar Loans
Through Florida’s Property Assessed Clean Energy (PACE) loan program, you may be able to obtain help financing your solar installation. Through PACE you make payments for your solar panel installation along with your property taxes.
Another state program for low-income families is the SELF solar system loan with no credit approval necessary. These are fixed-interest loans with a 7.99-8.25% rate spread out over three to 10 years.
Solar Leases
The thought of solar leasing can still appeal to some. You avoid upfront fees, and some leasing companies may guarantee energy savings.
But many find the cons outweigh the pros. Cons in solar leasing may include:
- The cost is higher over time than owning your solar panels.
- You lose any rebates and tax credits.
- You will not be eligible for renewable energy credits.
- Your property taxes may rise.
- You will be locked into monthly payments on your solar system for years to come.
- There are limited brands available for lease.
Power Purchase Agreements
A Power Purchase Agreement (PPA) is another form of renting solar panels. As with a lease, you avoid upfront costs. The PPA provider installs the solar panel system and keeps ownership of the system, and you pay for the generated electricity.
The PPA differs from a direct lease as you only pay for what you use each month. In a lease, you pay a fixed monthly fee.
Comparing Financing Options
Only you can decide which solar financing option is best for you. There are many solar financing options available today and each has its positives and negatives. For those with less than stellar credit a SELF loan is likely a great option. PACE offers another alternative with payments due along with your regular property taxes. Each loan offers advantages over leasing in that, eventually, you will own your solar panel system.
Leasing and PPAs are another consideration, although you will never own the system.
Contact Solar Optimum to Review Your Options
Remember no matter how you go about paying for a solar panel system, you will be lowering your energy costs while also lowering your carbon footprint. Contact Solar Optimum today to discuss your solar panel financing options and for a free quote on a solar panel system for your home.
