Top 4 Florida Solar Incentives

Best Solar Incentives in Florida

Below are a few of the solar incentives Florida residents may have available to them. These could help you to lower the cost of installing and using solar energy to power your home. 

1. Inflation Reduction Act

The federal Inflation Reduction Act is one of the most important ways to reduce the cost of solar power installation for homeowners. This federal solar tax credit can help you obtain a credit on your national taxable income for the year you install the solar panel system. That could be as much as 30% of the total cost of installing the solar power system. 

This is a dollar-for-dollar tax saving. That means that, without any limit on the amount, you can claim up to 30% of the amount you paid for the solar panels, reducing your tax liability. This is a credit, meaning you must owe federal taxes in the year you install it to qualify for it. This solar tax credit is one of the best ways to reduce what you have to pay to invest in solar.

There are a few things to keep in mind. First, the actual percentage you can save depends on the tax year, as the percentage changes over the coming decade. In addition, the amount you save can include just about any costs associated with the purchase and installation of the solar panel system, including the equipment, the labor costs, and even the sales tax you have to pay.

2. Florida Solar System Property Tax Exemption

This savings option can help you lower the impact of rising property taxes associated with the increase in your home's value thanks to installing a solar energy system. Here's why this solar incentive is so important.

When you install solar panels on your home, that helps raise the house's value. If you were to sell your home, you could get more. However, that increase in the value of your home could mean you owe higher property taxes over time. To eliminate that risk, consider the Florida Solar System Property Tax Exemption.

It will provide you with a 100% property tax exemption for residential solar panels. It also covers any investment into a solar system battery storage device. If your home value increases due to the investment in solar panels, your state income tax will not go up for your property. That is a significant saving over time.

3. Sales Tax Exemption

Another way to save money on the solar panel system you select is by eliminating paying sales tax to purchase the equipment. Most of the time, when you buy equipment of any type, you will pay sales tax on it. With the sales tax exemption, you do not have to do so. You do not have to pay sales or use tax on purchasing and installing your solar energy system.

It would be best if you did not have to pay sales tax on any of the following types of equipment that you purchase:

• Solar panels
• Energy storage units, like solar batteries
• Inverters and solar panel mounting systems
• Electrical equipment, such as wiring and disconnect switches 

4. Local Solar Cooperatives 

Some of the solar companies throughout Florida have rebate programs that could help you to save money. There are dozens of these, which you can find on the DSIRE website. Just look for the provider of your energy needs and find out what is available as a rebate to reduce further the cost of installing solar panels for your home.

In addition to rebates, several loan programs and grant programs are available that could lower the costs associated with installing solar on your home.

How to Pay for Solar Panels in Florida

Now that you know of the Florida solar incentives, it may be time to find some ways to get the process started. You have a few options that could help you pay for solar affordably, which could mean getting a system in place rather quickly.

Buying outright

The least expensive option for most people is to purchase the solar panel system and take advantage of all the solar tax incentives available to those who buy solar panels. Keep in mind that this means paying the most out of pocket upfront. However, with this method, you do not have to pay any interest on your purchase over time.

Financing 

There are numerous solar loan programs available that could help you to save money on solar panels as well. Here, you are purchasing the solar panels and will use them as you wish. You own them. You also qualify for federal and state tax incentives this way. With financing, you obtain a loan and make payments over time. The amount you pay is dependent on credit availability. An interest charge, though, increases the overall cost of solar panels.

Leasing

A third option is to lease solar panels in Florida. When you rent them, you do not own them. That means the solar power company will maintain the solar panels and continue to hold them even after they are placed in your home. The benefit here is that you do not have to pay anything upfront for them. You pay for the solar energy you use that they generate. In this case, you do not get to tax the federal tax credit.

Does Solar Make Sense to You?

Solar panels are very reliable. While solar panels don't work at night, they will produce significant amounts of electricity in the Florida sunlight during the day. That is then stored in a solar energy battery that keeps you powered throughout the day and night. But you'll need to determine what you can expect to pay for solar panels based on how much energy you use.

Don't stress if you have yet to learn how to get started on the path to sustainable solar living. SmartSolar is here to help you navigate your options for going solar and slashing your energy bills. Don't hesitate to contact SmartSolar today to learn more about how they can help you.

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