Florida Solar Tax Incentives
FL Guide to Solar Credits, Tax Incentives, and Rebates
Florida is famously known as “the Sunshine State,” and for good reason. This beautiful destination has made a name for itself with a vibrant culture, 1,300 miles of beautiful coastline, and a lush, year-round tropical climate. Florida’s abundant sunlight beautifies the state and makes outdoor recreation irresistible. It also makes it one of the leading states in the nation for solar energy production.
Florida has an increasing number of solar-powered homes, with over 100,000 homeowners having installed solar panels on their residences to take advantage of the Sunshine State’s abundant resources. If you’re interested in home solar power in Florida, continue reading to see how to use Florida solar incentives, rebates, and tax credits to make your home solar system more accessible and affordable.
Residential Clean Energy Credit
The Residential Clean Energy Credit is a tax credit that homeowners can claim when they file their federal income taxes. Many homeowners in Florida may not be aware that they can qualify for Residential Clean Energy Credit, allowing them to cover up to 30% of the cost of solar installation.
This Is a Federal Solar Tax Credit
Formerly known as “The Investment Tax Credit (ITC)”, the Residential Clean Energy Credit is a solar tax credit at the federal level, designed to incentivize American homeowners to adopt solar energy systems and promote the use of sustainable energy. This credit allows homeowners of Florida a solar tax credit, which can significantly decrease their federal income tax liability by a large percentage of their total solar installation costs.
Covers up to 30% of Your Solar Installation
The Residential Clean Energy Credit covers up to 30% of the total cost of your solar panel installation. That credit can be applied to solar photovoltaic (PV) and solar water heating systems. It’s important to be aware that the percentage of the credit may vary based on the date of installation, but overall, this federal tax credit is one of the most compelling when it comes to Florida solar panel incentives.
Consider this example: if the total cost of your solar panel installation amounted to $20,000, then the Residential Clean Energy Credit could save you up to $6,000 (30% of $20,000) by offering you a tax credit for that amount. By directly reducing your federal tax liability, this solar incentive can ease your transition toward solar energy by making it more affordable.
Why Choose Axia by Qcells for Your Installation?
Since there are a variety of available Florida solar incentives and solar rebates in Florida, it makes it a much easier decision to switch to sustainable energy for Florida homeowners. If you are ready to harness solar energy in your home, Axia has you covered. Remove the guesswork and headaches from installing solar panels on your home and achieve energy independence with the help of Florida solar rebates and Axia.
Axia is a full-service solar company, so we have the tools and resources to assist at every step along the way.
Streamlined Installation
Axia designs solar systems that fit your home’s specific needs, handling all of the permits, paperwork, and red tape so you don’t have to, and prioritizing both efficiency and quality in our installations.
Quality Solar Panels
We outfit your home with the best equipment we can offer, which is why we’re backed by Qcells and install their top-of-the-line solar panels on each home we service.
Tax Credit: Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) has introduced additional Florida solar incentives for homeowners wanting to invest in sustainable solar energy. Though the main intent of this act is to curb inflation, it also offers a handful of tax incentives that can work hand in hand with the federal Residential Clean Energy Credit and allow Florida homeowners to reduce their solar installation costs by a significant amount.
Net Metering in Florida
Participating utility companies include
You’ll need to be a billed customer from one of these companies to participate in the net metering program.
How You Are Credited
Under net metering, the surplus energy that your solar panels produce can be fed directly back into the grid, providing you with credits on your future electricity bills. Potentially, these credits can even roll over to your next billing cycle, which allows you, as a homeowner, to maximize your solar investment.
The value of the credit you receive will most often be based on the current retail rates that your utility company charges for electricity, allowing you to accrue substantial savings from your solar system over time.
Florida State Property Tax Credit
Currently, Florida does not offer state tax credits for solar panel installations. However, the current lack of Florida solar tax credits doesn’t preclude homeowners from using the many other tax incentives available in the state.
Solar Equipment Tax
Florida offers a property tax exemption that accounts for the value that solar equipment adds to your home. That allows you to increase the value of your home by installing solar panels without worrying about the improvements resulting in higher property taxes. This Florida solar incentive gives homeowners yet another attractive reason to make the switch.
State Sales Tax Exemption
On top of other federal and state tax incentives, Florida exempts the sales taxes associated with the purchase of your solar equipment and the installation of your solar energy system. This is a significant cost reduction that makes going solar that much more affordable.
How Much Can I Save?
Even with solar energy being one of the most effective ways to save energy, most homeowners that make the switch do so for the attractive long-term cost savings. Though your personal savings calculation will vary based on factors like your personal energy use, the location of your home, and the average price of energy in your area, most homeowners who make the switch to solar with Axia see a significant difference.
Get in touch with Axia today to receive a personalized quote to see a more accurate estimate of how much solar energy can save you.
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We’re ready to help you electrify your life with the empowering use of solar energy. Work with our team in any of the following locations.
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Florida Solar Incentives FAQ
Solar panels are discussed frequently in Florida, so many Florida homeowners have questions about home solar systems. Here, we’re shining a light on some of the most common questions about Florida solar incentives.
Though adding solar panels to your home can create a minor increase in your home’s replacement cost, it likely will have a minimal impact on your overall insurance rates. Depending on your insurance provider, it’s possible that it may even make you eligible for a discount since solar panels can actually enhance your home’s safety by reducing your reliance on the grid.