Florida is the “Sunshine State”, and ranks third in the country for ideal solar conditions. However, Florida falls to the 14th State when it comes to solar installations. Florida offers rebates and tax incentives for installing solar power systems. Since 1997, solar systems are exempt from Florida’s sales and use taxes. The term “solar energy system” is used in Florida to refer to equipment and hardware that are used to collect, transfer, convert, store, and use incidental solar energy for heating, cooling, and other purposes that would otherwise need a conventional source of energy like petroleum products, natural gas or electricity. Here we will review the Tampa solar Incentives available for homeowners in Tampa FL that want to take advantage of solar power!
THESE FLORIDA PROGRAMS CAN HELP YOU GO SOLAR
FLORIDA NET METERING
Many electric companies will give credit or pay you a payment for your energy production. Net Metering allows your excess energy to be sold back to the grid.
FEDERAL SOLAR TAX CREDIT
The Federal government offers you another incentive, the Investment Tax Credit (ITC).
The ITC rebate is only available to those who have sufficient income. However, the ITC rebate subtracts nearly a third of the cost of your solar energy system and credits you with income tax. The ITC rebate is also available for PV panels purchased through a cash purchase, or a loan.
PROPERTY TAX EXEMPTION
The Florida Property Tax Exclusion For Residential Renewable Energy Property means that installation of your solar system won’t increase your property taxes, unlike adding an addition to your Tampa FL home.
SALES TAX EXEMPTION
Due to the Solar and CHP sales tax exemption incentive, you don’t have to pay any sales tax on a solar system. There are many programs that Tampa homeowners have access to, so there is no reason to not go Solar.
SOLAR TAX CREDITS
26% Tax Credit through 2022
Tax credits can help reduce the cost of your solar power system. An aggressive Federal Tax Credit can get you as much as 26% off on your new solar energy system.
Solar Tech Elec suggests that you confirm the availability of tax incentives with your tax advisor before installing a solar photovoltaic panel. There’s no better time than now to go solar, given the 26% tax credit. The 26% tax credit will decrease after 2022, so don’t delay. Florida claims that even if your home’s value rises due to solar systems, you won’t be taxed.
ADDITIONAL PROPERTY VALUE
Any type of solar photovoltaic systems can give homeowners an increase in property value. Solar power systems are the future of energy.
Business Accelerated Depreciation (MACRS).
Tampa businesses have the option to take advantage of accelerated depreciation, also known as (MACRS). Renewable energy solutions can be amortized on a 5-year accelerated schedule. To better understand the tax savings and tax benefits of going solar, consult your tax professional. The following factors can affect the payback time (ROI) for solar photovoltaic (PV), technology: local climate, utility rates and sun exposure. Also, tax credits may be available.
Net metering is the practice of selling excess solar power you have generated. It is a benefit for you, the consumer, and reduces your return on investment.
The net metering system is both a win-win situation for the consumer as well as the power company. The consumer generates electricity during peak loads, reducing the demand for the grid. In addition, the power company receives any excess energy at the highest energy cost. In areas of increasing population, net metering helps reduce the need to make additional investments in power infrastructure.