Florida is among the sunniest states in the US, making it a perfect place for tapping into the benefits of solar energy. You can install solar in your home and reduce energy bills by up to 70% while enjoying a steady electricity supply. However, the initial installation cost can be high. But various energy rebates can help offset the costs. Learn more about different solar rebates in Florida and how to apply for each.
Federal Tax Credit
The federal tax credit, officially called the Investment Tax Credit (ITC), is a government incentive that encourages homeowners to shift to green energy—every homeowner who installs solar panels benefits from this tax credit. Homeowners can recoup 30% of the total solar investment from their tax liability.
A homeowner who invests $30,000 in solar panels can claim up to $9,000 in tax credits. However, tax credits are not refundable, meaning they can only reduce your tax liability but are not redeemable in other forms.
The federal tax credit will not last forever, though—it will reduce to 26% in 2033, 22% in 2034, and expire in 2035 unless extended by Congress.
State Solar Rebates
There are no state-level tax credits since Florida does not levy individual income tax. However, the state has several incentives for homeowners intending to go solar. Here are some state-wide solar incentives in Florida.
Sales Tax Exemption
Florida has a general sales tax of 6%. That means buyers must pay the 6% sales tax when they buy most commodities. However, homeowners should not worry about the sales tax when considering an investment in solar energy. The Sunshine State exempts them from paying the sales tax on solar panels. Moreover, homeowners are not required to apply for the exemption since no sales tax will be charged.
Property Tax Exemption
Investing in solar panels increases the value of your home. An increase in home value translates to higher property taxes. However, you are exempted from paying higher property tax if the increase comes from solar investment. You can consult your tax accountant or solar installation company to learn more about property tax exemption for homeowners.
Net Metering
Florida has a statewide net metering policy, allowing solar homeowners to get paid for generating excess solar power. Solar panels in Florida usually reach a higher energy output than in many other regions of the country due to Florida’s sunny weather, which can result in more excess energy production.
Local Government Incentives
Local government incentives further reduce the cost of solar in Florida. However, like the utility companies, local government incentives vary from city to city—for example, the Orlando Utilities Commission (OUC) offers a $2,000 rebate for batteries with a usable capacity of 8kWh and a 10-year defect warranty. Your solar installation company should help you apply for local government incentives.
Contact Solar Optimum to Learn More About Solar Rebates in Florida
The initial solar installation costs can be high. However, solar energy rebates and tax credits in Florida can reduce the cost of installing a solar system in your home. Contact us to learn more about federal and state incentives for homeowners, and get a free quote on a solar panel system.
