Want to go solar in the Sunshine State? From tax credits and exemptions to net metering, Florida has multiple solar incentives for homeowners that help reduce the cost of the system or even pay you for any solar energy you export to the grid. In this article, we break down some of the solar programs offered in Florida that can help you maximize the value of your home solar investment.
May 30, 2022
Florida solar tax credits and incentives
Florida solar tax credit
Federal Solar Investment Tax Credit (ITC)
All Americans can be eligible for the federal solar investment tax credit (ITC), which offers a tax credit of up to 26% of the cost of your solar system. For example, if your solar system cost $10,000, you can deduct $2,600 from your federal income taxes - which essentially translates to a $2,600 discount! But heads up: The ITC drops to 22% in 2023 and it will phase out completely for homeowners after that - this means that the sooner you go solar, the better. Check out this article to learn more about the ITC.
Florida solar tax incentives
Property Tax Exemptions
When you make any significant addition to your home, your property taxes will typically increase due to the extra value that the addition brings to your property. In Florida, however, the entire value of your solar system may be exempt from property taxes - meaning that your new panels will not increase your property taxes. You can find out more about this exemption here, where the details of renewable energy assessments are available.
Sales Tax Exemptions
Similarly, homeowners who buy rooftop solar in Florida are exempt from paying any state sales tax for their system. This sales tax exemption is a great opportunity for Floridians to minimize the upfront cost of going solar.
Florida net metering
Net Metering
Florida solar owners not only benefit from reduced utility bills and a lower carbon footprint, but they can also get paid for any solar that they send to the grid. Known as “net metering,” this program enables solar owners to earn credits for the energy that their panels export to the grid. These credits are then applied to reduce the cost of their monthly utility bill. In addition to the Florida statewide net metering program, some utility companies have net metering options for their customers. Here are a few of the biggest utility net metering programs in Florida:
Duke Energy
Duke Energy offers its customers a net metering program to earn credits for extra electricity produced by any solar system sized up to 2,000 kilowatts (kW). Last year, net metering participants earned about 4 cents per kilowatt-hour (kWh) for their exported solar. To maintain grid reliability, Duke requires a minimum monthly electric bill of $30 for participation.
Florida Power and Light (FPL)
Florida Power and Light offers a three-tiered net metering program based on system size. Your home solar system will most likely be in Tier 1 (0-10 kilowatts) or Tier 2 (10-100 kilowatts). Solar owners participating in net metering will be credited at the retail rate for their exported solar energy.
Check with your utility provider for more details about your net metering options.
Will you make the switch?
There are many options for Floridians looking to go solar to reduce costs and maximize value. Tax credits and exemptions help lower the price tag of a new system, while net metering enables solar owners to earn extra money for any solar energy they do not use. What better place to go solar than in the Sunshine State?
Ready to go solar? Contact Enphase to learn more.
LEGAL NOTICE: (c) 2022 Enphase Energy, Inc. All rights reserved. This information is based upon various rules and regulations currently in effect and information available as of May 31, 2022. Such rules and regulations are complex and often change, and results may be different based on particular facts and circumstances. The information herein is general in nature and may not apply to your circumstances, and Enphase is not in a position to assure any particular result. You should seek appropriate professional advice as to how these rules and regulations apply to your situation. Enphase assumes no obligation to update this article in light of new information or on future events.