Florida’s nickname, the Sunshine State, shows that it shines with potential for solar power. Florida’s solar power incentives can benefit your home or business financially. Net metering gives credits to customers for any net excess of energy they provide in a given month. If a homeowner puts more power into the network than they use, the utility has to pay them.
It is easy to take advantage of solar energy tax incentives from the government for your home or business. Homeowners can access the PDF version of IRS Form 5695 online.
Federal Tax Credit for Residential Renewable Energy
The residential renewable energy tax credit is intended for homeowners. It provides 30% back for the equipment and labor costs to install a photovoltaic, or PV, solar system, a solar water heater or an attic ventilation system that is solar. A homeowner needs to have a tax liability to qualify for a tax credit.
Florida State Solar Incentives
If you purchase a solar energy system in Florida, the current law allows you to buy a photovoltaic, solar water heater, and solar pool heater with a sales tax exemption. And you will not pay sales tax on the purchase. The State of Florida agrees it will not increase your property taxes because solar will increase the value of your home.
Net Metering Payment Program
The procedure of paying for excess power is called net metering. To verify net metering, your utility will install an additional electrical meter to track any solar energy their system is contributing to the overall grid.
Zero Interest Financing
There are several zero-interest financing options for residential and commercial customers who want to install solar systems on their properties. However, there may be limitations on eligibility for financing, based on credit scores.
Electric Bill Credits
If you install a solar water heater or solar pool heat, you can save between $25 and $500 on your power bill. Contact us to learn how you can get this and save even more with Federal tax credits.
Federal Tax Solar Incentives
One of the most popular solar incentives is the Business Energy Investment Tax Credit (ITC) which provides businesses a 30% tax credit for nearly all types of solar systems including water heating, space heating, thermal, process and PV electric. Another benefit of federal tax incentives for solar energy systems is accelerated appreciation. The MACRS, or modified accelerated cost recovery system, allows businesses to depreciate solar power systems over a 5-years to advance the depreciation early in the life of the product.
Commercial Solar Power in Florida
Businesses want to go green and save energy, too. And lowering utility bills can help boost a company’s bottom line.
Net Metering for Residential and Commercial Customers
Net metering for residential and commercial customers require that the business maintains a separate electrical meter, which the power company provides to measure the output of the solar system. When the energy generated by the commercial system exceeds the needs to power the business, the power company will pay the commercial entity for the energy placed back into the overall power grid. There is one caveat. Most power companies will only buy back at a wholesale rate.
With all these Florida solar power incentives, going green is the right choice for many property owners in the Sunshine State. And you can lower your utility bills while you do something good for the environment.
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