Florida is one of the leading states in solar energy. With over 225 sunny days a year, it’s really no surprise.
Travelers love to vacation to Florida’s 1,350 miles worth of beachy coastlines. They love to bask in the sun and enjoy all its rays. Northerners are renowned for packing up their snow boots and trading them in for some sandals when they retire. But Florida sunny beaches aren’t the only reason why we love the sunshine. With 237 sunny days a year, Florida is one of the leading states for solar energy.
If you own a home in Florida, transitioning your utilities to solar energy can save you thousands in the long-term AND it can help combat climate change. Here we’ll go over the incentives, tax credits, and solar rebate programs in Florida and why choosing solar in this state is the right decision for you and your family.
Federal Solar Investment Tax Credit (ITC)
This incentive is not particular to Florida, but it is a popular and important tax credit to consider when transitioning over to solar energy. The Solar Investment Tax Credit has been a main contributor in the country’s solar energy growth. Since its inception in 2006, the country’s solar energy industry has grown by more than 10,000%!
This tax credit is for both residential and commercial solar energy. It is a 26% tax credit on all solar installations completed before December 31, 2022. Though, because this is such a great incentive for solar energy users, the government is talking about extending this tax credit to keep the incentive for people to build solar energy well into the future.
When homeowners purchase solar energy outright, they are able to claim this 26% tax credit on their personal income taxes. If it were the business, then the business that installs and/or finances the project can claim the credit.
Florida’s Solar System Property & Sales Tax Exemption
This incentive is unique to Florida. While adding solar energy is known to increase the value of your home, you can count on it not raising the value of your property taxes. Homeowners receive 100% tax exemption for any added value the solar energy system adds to your home. This means your home will be worth more money, but you won’t have to pay taxes on that added value.
For commercial or non-residential properties, owners and businesses receive an 80% tax exemption.
In addition to the property tax exemption, Florida law exempts sales tax to be added in any solar energy systems and the components of such systems. Tesla Powerwalls are included in the exemption as well, if purchased with a solar energy system.
Commercial and residential PACE programs
Property Assessed Clean Energy, or PACE programs are long-term fixed rate financing options for residents and business owners who transition to solar energy systems. Property owners pay back the financing for PACE improvements through a special assessment that is added to their property tax bill each year. Interest rates are fixed and there are no balloon payments.
PACE programs allow you to pay the costs over an extended period of time. They rarely require upfront costs, and they’re lumped into your property tax bill each year. Which we learned from above will not increase due to solar energy’s added home value.
Whether you’re looking for more affordable energy, or you’re focused on reducing the harmful impacts of climate change — switching over to solar energy has added financial benefits for you that extend beyond the energy bill savings.
If you’re interested in learning more, we’re here to answer any questions you may have!