Solar Power Incentives

•  FLORIDA SOLAR ENERGY INCENTIVE PROGRAM

Effective July 1, 2006 State Bill 888 created financial incentives for the installation of solar energy systems.  Under this Florida Rebate program any resident of the state who purchases and installs a new solar energy system from July 1, 2006 through June 30, 2010 is eligible for the rebate.

• Solar Water Heater Incentive Program
• $500.00 rebate per resident
• Must be installed by a licensed solar contractor
• Solar Power / Photovoltaic System Incentive Program
• $4.00 Per Watt
  (i.e. 5,000 watt x $4.00 = $20,000.00 maximum rebate)
• Minimum system size 2kw = 2,000 watts
  (2,000 x $4.00 = $8,000.00)
• Maximum system size 5kw = 5,000 watts
  (5,000 watt x $4.00 = $20,000.00)
• Must be installed by a licensed solar / electrical contractor

• NET METERING

Net metering allows you to draw on utility power when it is needed and to sell power to the utility company when your solar electric system produces a surplus.  Net metering legislation states that the utility company must credit you at retail rates (the same rate they would have charged you).  Therefore, you will be credited for power fed back to the utility company from your solar power / photovoltaic system at the same kilowatt hour rate at the same kilowatt rate that the power company charges you.

Read the Public Service Commission's News Release for Net Metering.
 
• PROPERTY EXEMPTION / SOLAR ENERGY SYSTEMS

The solar energy system exemption allows residential and commercial property owners to apply for and receive a property tax exemption.  This means that the cost of a solar energy system will not increase the appraised value of a home or business for property tax purposes.
 
•  SOLAR ENERGY SYSTEM SALES TAX EXEMPTION

Florida Law exempts solar energy systems and all components of such systems from sales and use tax.  The term “solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity.  This includes solar power / photovoltaic systems, solar water heaters, solar pool heaters and solar lighting.
 
•  FEDERAL TAX CREDITS

Under this legislation, homeowners are entitled to receive a federal tax credit worth 30% for a qualifying solar energy system, capped at $2,000.00.  A tax credit offers significantly more financial savings to the buyer than a tax deduction.  A tax deduction is subtracted from the income before tax liability is computed.  The tax credit is subtracted directly from the total tax liability.  This means that a tax credit offers more savings to the consumer than the tax deduction.  For a comparison, a tax credit of $1,000.00 for a taxpayer in the 28% tax bracket is the equivalent of a tax deduction of $3,751.00.
*While we have made great effort to describe these tax incentives accurately, we cannot provide tax advice and suggest you contact a tax professional with any questions specific to your situation.  For more information go to www.seia.org. (note: this is an excellent information source)

NOTE: Residential Photovoltaic/Solar Electric Systems qualify for the full 30% of the installed price when placed in service after January 1,2009 ie… a System  costing $30,000 would qualify for a $9,000 tax credit against federal taxes owed.