How Do Solar Incentives Work in Florida?
With rising energy prices, the government has a vested interest in moving the country away from fossil fuel. And it’s prepared to reward those who help with this transition. This is why there exist a range of solar incentives for those who install photovoltaic (PV) panels on residential and commercial properties they own.
These generous green subsidies come in many different forms. But 2 of the most popular include the Solar Investment Tax Credit and net energy metering.
The Federal Solar Tax Credit: at a Glance
The Solar Tax Credit lowers the upfront cost of installing PV panels by reducing your tax obligation to the IRS. If your solar installation costs $10,000, for example, you can claim a $3,000 credit on your next tax bill.
This one incentive is credited with helping the solar PV industry grow by 1,600% since its introduction back in 2006.
To learn more, be sure to read: How the Federal Solar Tax Credit Works.
Net Energy Metering: at a Glance
Net energy metering is a state-level incentive that allows you to sell excess solar electricity to your local utility provider – in exchange for credits that you can apply to future electricity bills. As such, it’s technically possible to carry a negative balance if your PV system generates enough extra power. And that isn’t very hard to do in a sunny state like Florida.
Enrolling in this program can also dramatically speed up the payback period of your clean power investment. Not only are you saving money by going solar, but you’re also “monetizing” the sunshine that hits your roof every day.
To learn how this incentive works in Florida, check out: Net Energy Metering in the Sunshine State.
How to Take Advantage of These Florida Solar Incentives
When used separately, either of these solar incentives can help deliver massive savings. And it’s possible to combine both programs together for optimal returns.
However, enrollment isn’t automatic in either of these solar incentive programs:
- You must be the PV system owner to be eligible for both the tax credit and for net metering.
- If you want to enroll in Florida’s net energy metering program, your system must be installed by a licensed contractor. That’s because this incentive requires connecting your PV system to the utility grid.
Ready to Go Solar Today?
Whether you choose to enroll in either or both of these programs, it’s important that you act today.
This is because solar incentives are specifically designed to diminish over time:
- Early adopters enjoy the highest rewards. And they usually get grandfathered into the current rules – even if the program changes later on.
- By contrast, latecomers receive the smallest payouts – with many missing out on the benefits entirely.
This is why it doesn’t pay to delay. Even though PV panel prices continue to fall every year, you’re still better off investing in solar today. The sooner you act, the larger your savings.
Florida may not have as many solar incentives as other states. But it offers 2 generous subsidies that can dramatically boost the ROI of your solar PV installation.