Photovoltaic (PV) systems, also known as solar systems, transform sunlight into electricity that can produce enough energy for your entire house and completely eliminate or save you money on your electrical utility bill. Adoption of photovoltaic systems (PV) is growing rapidly in Florida. Improvements in solar technology have reached levels we never thought we could achieve, and the costs of these systems has never been lower, but with recent inflation in America, and the Fed interest rate increases over the past year, the costs of PV systems will begin rising for the first time in history. There has never been a more urgent time to buy solar than there is right now. The longer you wait, the less you will save!!
Installing solar panels for your home or business is a guaranteed way to save money, and a guaranteed return on your investment. Solar power pays for itself over an average of 10 years. As utility costs keep rising, the amount of time it takes to recoup your investment will get shorter throughout the 25 year life of the system. Owning a PV system will also increase your property’s value once the system is paid off.
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The cost to install a residential PV has been rising as the increase in demand, the shortage of qualified installers, and Fed rate increases and inflation will directly affect the pricing of these systems. Additionally, tax credits and current favorable utility policies make investing in PV very appealing in the State of Florida, but the longer you wait, the higher the risk that changes in policies could negatively affect a future investment in solar energy, by purchasing a system now, you lock in the utility net-metering agreements for at least 20 years. Be sure to only hire a NABCEP certified solar energy company with experience in the installation of residential and commercial PV systems.
Does Florida offer any solar incentives?
The Sunshine State is plentiful in economic incentives for homeowners who want to upgrade their properties with renewable solar energy. These incentives can sum up to more than 30% of the cost of installing a new PV system. This is called the Investment Tax Credit.
Federal Tax Credit for Solar Photovoltaics
The Investment Tax Credit (ITC) can be used to offset 30% of the cost of installing a solar photovoltaic (PV) system. Please consult your tax professional to ensure you will reap the benefits of this incentive. Everyone qualifies, but not everyone has personal tax liability. Businesses/LLC’s also qualify for the 30% ITC.
It is very important to note that just recently, on August 16, 2022, President Biden signed the Inflation Reduction Act. This legislation extends the Federal Tax Credit for Solar Photovoltaics until 2034 and raised the tax credit from 26% to 30% for PV systems installed in 2022 and beyond. In 2033, it will be reduced to 26%, and in 2034, to 22%.You can see what has changed in this article from the Office of Energy Efficiency and Renewable Energy.
Property Tax Exemptions
In Florida, your new PV system will not raise your property taxes, the value added to your home from your solar system is exempt from property taxes. This Property Tax Abatement for Renewable Energy Property incentive is equal to 100% of the value of your PV system for residential installations and 80% for commercial installations.
State Sales Tax Exemption
New solar energy systems have been tax exempt, according to Florida law, since 2005. This means you will be saving upfront 6-8% of the cost of the solar panels and components of your system. There is no sales tax applied to the purchase of any solar energy system!
Be sure to check your local area in Florida to see if it has local rebates for the acquisition and installation of new solar energy systems that will put even more money into your pocket.
You will be able to save even more on your energy bills since most utilities in Florida are under a full retail net-metering agreement. Net-metering is an electric billing tool that uses the electric grid to store excess energy produced by your solar panel system. Under net metering, energy your solar panels produce, and what your home doesn’t use, is credited back to you in the next billing cycle. As a solar customer, you will only be billed for your “net” energy usage. This is also known as net energy metering, or NEM. Interconnection agreements are signed with your utility and these are the “Net-Metering” agreements.In 2022, there was a fight in the State of Florida between the Public Service Commission, which sets utility rates and utility laws in Florida, and the Solar Energy Industries Association. FPL, Duke, and several other monopoly utility companies lobbied to pass new laws that would eliminate net-metering in Florida by 2030. Existing solar system owners would have been “Grandfathered” in for 20 years at the current favorable net-metering rates, but new solar owners would not have received the same benefits. The fight made it all the way to Governor Ron Desantis’ desk, where he VETOED the bill! The fight with utilities will always be there, in the end, they want YOUR MONEY, and they don’t want you to generate your own electricity. See this article for additional information: https://www.clickorlando.com/news/local/2022/04/27/desantis-vetoes-net-metering-bill-leaving-solar-energy-as-is-in-florida/
Solar Panel Installation Near Me
With over 35 years of combined solar energy experience, the Castaways Energy team will provide the best customer experience and the best cost-effective installation of your PV system. Our NABCEP certified solar energy experts will give you immaculate installation quality, and outstanding and heroic service of solar energy installation for your home and your business. We install systems for SunPower, Tesla, Palmetto, and many other nationally recognized solar energy firms and corporations. WE are locally licensed, founded, and owned by natives to Florida, we are an Island of Solar Excellence! Call 407-985-2689 or fill out a contact form right now to locate the best solar energy team in your area.