The state of Florida has enough solar energy to power over a million homes, making it one of the premier states to own solar panels. With that said, investing in solar panels is quite an undertaking without the right incentives.
So are there solar incentives in Florida? If so, what are they and how much money does it really save you?
That's what we're here to look at today. Read on to find out more about Florida solar incentives and how they work.
Florida Renewable Energy Property Tax Exemption
Arguably the most well-known Florida solar tax credit is the Florida Solar System Property Tax Exemption.
This provides a 100% tax exemption for properties with renewable energy. It also provides an 80% property tax reduction for any non-residential property with renewable energy systems installed.
Eligible renewable energy systems include solar panels, solar energy storage systems, solar water heaters, and wind energy systems. As long as these were installed onto your property after January 1, 2013, it's exemption-eligible.
The exemption also applies to certain equipment related to renewable energy systems. This includes generators, windmills, and thermostats.
Solar and CHP Sales Tax Exemption
Floridians also don't need to worry about sales tax when they purchase solar panels or any related equipment. This sales tax exemption has been active since 1997 and has been made permanent in 2005.
Solar energy homeowners don't need to pay sales tax on any piece of hardware used for collecting, converting, storing, or otherwise using solar energy. This makes it quite beneficial when investing in solar panels.
Florida Net Metering
Net metering is one of the most important mechanisms for saving you money when using solar panels. It essentially lets you sell any excess power generated from your panels back to the grid.
It's available in many states that support solar energy and is a staple in Florida. Utility companies like Duke Energy and Florida Power & Light are key proponents of net metering.
This is a particularly great incentive for solar energy homeowners since most net metering programs work on a credit system. Homeowners get credits for their utility bills, meaning they can save them up for the winter.
While Florida is a warmer state, there's no harm in having a few utility credits to use when things start to get chilly in the wintertime. Leveraging Florida net metering is an excellent way to keep saving money with solar.
Federal Solar Tax Credit
Finally, there's the federal solar tax credit. While not exclusive to Florida, no article about solar incentives is complete without talking about this long-standing tax program.
This lets homeowners with solar energy systems installed claim about 26% of the cost of their solar panels from their annual taxes. That means you'll be saving big on your annual taxes just by owning solar panels.
Anyone who owns their solar panel systems is eligible for this credit. You can even save up your credits if you don't need to use them during any given year. If you want to invest in solar panels and get a tax break, click here.
Using Solar Incentives in Florida
There are plenty of solar incentives in Florida that make installing solar panels a smart choice for anyone. Use this guide to help you understand what these incentives are and how you can take advantage of them!
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