Utility and Tax Incentives
Federal, state, and local governments understand the importance of sustainable energy and the high costs associated with traditional power sources. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives can save customers well over 50% on the cost of energy.*
Federal Investment Tax Credit – 30%
The solar investment tax credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar from 2023-2032. On leased systems, the financing partner collects this incentive and passes the savings on to the homeowner. Don’t wait; prices for solar equipment are on the rise! Hurry and take advantage of this while it lasts.
Florida State Incentives
Florida offers several financial advantages when it comes to solar energy, such as a federal tax credit and a net metering policy that enables residents to earn credits on their electricity bills by selling excess solar energy.
Florida residents who choose to install a solar energy system on their homes can take advantage of the net metering program. Net metering is a billing arrangement that allows you to receive credit on your electricity bill for any surplus solar energy you generate and send back to the grid.
By participating in net metering, you not only become a self-sufficient provider of clean energy but also contribute to the wider adoption of solar power in your local community. Moreover, you receive compensation for the excess energy you contribute.
The specifics of net metering can vary depending on the state and utility company. Ask us if you qualify!
Installing solar panels on your home increases its value by up to 20 times your annual energy bill savings. We don’t think you should be penalized for your sustainable decision, and many state legislators agree! Currently, new solar installations will be subject to no additional property taxes based on their assessed value.
No Sales Tax on Solar
Since July 1997, solar energy systems have been exempt from Florida’s sales and use tax. In May 2005, the exemption was made permanent upon the enactment of H.B. 805. This exemption applies to solar hot water, solar space heaters, photovoltaic systems, solar pool heating, and all associated components. The Florida Solar Energy Center periodically revises the list of equipment and requisite hardware considered to be solar energy systems.
Increase Home Value
Having a residential solar energy system on your property is known as a capital improvement that adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax-based investment can be deducted from the sale’s price, reducing the amount of the price that is counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on the appreciation.
*Ask your representative about which incentive you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
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