Florida is one of the sunniest places in the United States, and many homeowners here have switched to solar energy to take advantage of the state’s weather. A lot of you might not know that there are additional advantages to going solar in Florida, and these advantages are unique and help solar energy in Florida stand out.
Federal Solar Investment Tax Credit (ITC)
You can avail of a 26% federal solar tax credit if you buy and install solar panels within 2020. This credit applies even if your panels don’t have any battery storage. This benefit reduces to 22% in 2021 and will run until 2022, and it may not come again unless the federal government extends this program.
A 5-kilowatt system will cost between $11,000 and $15,000 on average, and it includes equipment, permits, and labor. A 26% tax credit will mean that you will reduce costs, with the total being around $8,140 to 11,100.
Net Energy Metering: No Payments For Up To 12 Months
You can send your energy to the grid if your panels generate excess electricity. Net energy metering gets you full retail credit for the amount of electricity you give back. You must allow your utility to track your energy production and consumption to avail of this benefit. The tracking gives them an idea of the surplus energy you provide.
This credit carries forward at a full rate for up to 12 months, and you won’t be paying anything for up to a year if you continuously generate enough excess energy that covers your consumption. After the end of the 12 months, your utility provider will pay you any credit left at an avoided-cost rate.
Net energy metering is more advantageous in states like Florida, where there is no capacity limit. You and your neighbor can both hook up to the grid without getting blocked. There are many hurdles that prevent people from taking advantage of net energy metering in other states.
Sales And Property Tax Incentives
Adding a solar energy system usually means higher property taxes in the US, but these added costs don’t apply in Florida. You are not charged extra as the state excludes taxes for renewable energy in homes.
The same is true for the sales tax. You usually pay 6% of the total as a tax for other systems. The Solar and CHP Sales Tax Exemption means you get to save 6% more on your purchase.
The best approach is to go solar before 2020 ends with all the benefits available. Even next year, you can’t ignore the money you’ll save in the long run having solar energy in Florida.