Florida Solar Rebates and Incentives
How Much Can You Save on Solar in Florida?
- An eligible 6kW solar system in Florida costs $13,920 and can be eligible for a Federal tax credit in 2021 worth $3,062.
- About 6% of Florida’s energy comes from renewable sources like solar, biomass and hydropower.
- As of 2021, the average retail cost of grid electricity per kilowatt hour in Florida was 10.67 cents.
- Homeowners are eligible for Federal tax credits if their new solar system is installed between 2022 and 2034.
- Net Metering allows customers to earn credits with excess solar energy that can be used to pay future utility bills.
Florida Energy Profile
Floria is the 10th sunniest state in the U.S., with an average annual sunlight of 4,859 kJ/m^2. As of 2022, solar installations accounted for 9,791 (MW), enough to power over 1.1 million homes. The state projects that over 10,001 MW will be installed in 2027.
In 2022, there were about 452 solar companies in Florida, offering approximately 11,761 solar jobs to Floridians.
Based on the data published by the U.S. Energy Information Administration (EIA), Florida’s total energy consumption per capita in 2020 was 185.6 Million Btu. Of this number, 56.4 Million Btu was consumed by residences while commercial establishments consumed 42.1 Million Btu.
Federal and State Solar Energy Incentives available to Floridians
| Florida Solar Incentives | State or Federal | Program Overview |
| Net Metering | State | Allows solar customers to earn credits with excess solar energy that can be used to pay future utility bills. |
| Federal Solar Tax Credit | Federal | Credits a percentage of the solar installation cost to a solar customer’s income tax liability for the tax year, depending on when the system was installed. |
| Property Tax Exemptions | State | Prevents a solar customer’s property taxes from increasing after solar system installations. |
| Sales Tax Exemptions | State | Waives all sales tax on solar equipment |
| Property-Assessed Clean Energy (PACE) | State | A solar loan option that adds a solar customer’s monthly payments to their annual tax bill |
How Cheap or Affordable is Solar Energy in Delaware?
As of 2021, the average retail cost of grid electricity per kilowatt hour in Florida was 10.67 cents. The average price of solar panels per watt was $2.41.
| State | Number of solar Installations | MW Installed | Average cost for grip power (2021) | Average cost per watts |
| Florida | 159 | 9,791 | 10.67 cents/kWh | $2.4 |
The cost of installing a 6kw solar system in Florida is $13,920. As of 2021, eligible homeowners could save $3,062 with a Federal tax credit. If the solar system were installed in 2023, it would be 4,176. This is because the federal tax credit for 2023 is 30%.
| State | Cost of installing a 6kw system | Federal tax credit value 2021 (30%) |
| Florida | $13,920 | $4,176 |
As of 2021, about 6% of Florida’s electricity was derived from renewable resources like solar, biomass, and hydropower. Approximately 70% of this renewable energy was derived from solar. In 2023, Florida ranked 4th in total solar power generating capacity. Approximately 84% of the solar generation came from large-scale installations (1 megawatt or larger).
Florida has a Martin Next Generation Solar Energy Center with 75-megawatt solar power in Martin County. The plant has nearly 200,000 mirrors and 1,100-megawatt natural gas-fired power.
What are the major renewable resources in Florida?
Florida has about 1,200 megawatts of biomass-fueled generating capacity derived from plants that process municipal solid waste and those fueled by wood and wood waste.
About 8% of the United States biomass-fueled electricity generation comes from Florida.
Florida also has many landfill gas facilities, which accounted for about 6% of the state's biomass generating capacity. The state has other biomass resources derived from citrus pulp, agricultural residues, invasive trees and plants, forest residues, animal waste, sugarcane waste (bagasse), and yard waste.
Although Florida has no significant energy derived from wind power. it has few hydroelectric plants that produce a small amount of power.
Federal Solar Tax Credit in Florida
Federal solar tax credit allows residential and commercial customers to claim a certain percentage of the credit for installing solar systems. Commercial customers can claim two federal tax credits:
- The investment tax credit (ITC): It helps businesses save specific percentages on solar installation costs during the tax year.
- The production tax credit (PTC): It provides a 10 years per kilowatt-hour (kWh) tax credit for solar-generated electricity.
All Solar systems installed between 2022 and 2032 are eligible for a 30% tax credit. For residential customers, the tax credit decreases to 26% and 22% for solar systems installed in 2033 and 2034, respectively.
In contrast, tax credits for commercial customers goes from 30% ITC or 2.6 ¢/kWh to 15% ITC or 1.3 ¢/kWh for solar systems installed between 2033 and 2035. Federal renewable energy tax credit covers the following expenses:
- Solar panel cost
- Solar equipment costs
- Labor costs, including inspection costs and permitting and developer fees
- Storage equipment costs with a capacity rating of at least 3 kilowatt-hours (kWh) for residential properties and 5-kilowatt hours or greater for commercial properties
- Sales and use taxes paid for eligible solar installation expenses
- CSP equipment cost for commercial properties
- Cost of circuit breakers, step-up transformers, and surge arrestors for commercial properties
Generally, solar customers can take advantage of Florida tax credit for solar panels without worrying about it affecting their federal incentives. This is because Florida's solar panel tax credit does not reduce federal tax credits and vice versa.
Eligibility
Florida homeowners can only claim federal solar tax credits if their solar PV system:
- Is new
- Was installed between early 2017 and late 2034
- Is located in their homes in the United States
- Was purchased by cash and financing or through an interest in an off-site community solar project. Homeowners leasing their solar systems or purchasing solar-generated electricity from solar companies are not eligible.
To be eligible for the business federal solar tax credit, the solar system:
- Must be used in the United States or U.S. territories
- Must be new but limitedly used equipment is allowed
- Must not be leased to a tax-exempt entity
How do I claim the Federal Solar Tax Credit in Florida?
Here is how to claim the federal solar tax credit in Florida:
Step 1. Download the necessary form
Floridians can print Form 5695 from the Internal Revenue Service (IRS) website. Fill out the form accurately. Individuals can contact the solar company hired to install the solar system to get basic information about the solar system.
Step 2. File the IRS form
After filling out the IRS Form 5695, file it for free on the IRS website. Individuals can also use third-party tax software to file their forms. This software will automatically prompt users for information about solar conversion.
Step 3. Seek professional advice
Claiming federal solar tax credit can be tedious and confusing for first-time tax filers. Therefore, individuals can seek the help of Florida-licensed tax professionals. These professionals know how federal taxes work and can guide taxpayers through claiming solar tax credits.
Net Energy Metering in Florida
Per F.S.§ 366.91, net energy metering is a renewable energy incentive in Florida that allows solar customers to sell the excess electricity back to the grid in exchange for electricity bill credits.
Only renewable energy systems with up to 2 megawatts (MW) capacity can be connected to the grid. Eligible solar systems include:
- Waste heat
- Biomass
- Hydrogen
- Wind energy
- Geothermal energy
- Hydroelectric power
- Solar energy (photovoltaic)
- Ocean energy (tidal power or ocean currents)
Florida homeowners with net-metered solar systems earn credits for each kilowatt (kW) energy their systems produce. Their monthly electricity bill will be calculated based on the total amount consumed minus the generated amount. Solar customers whose solar systems generated more energy than the amount consumed throughout the month will have their credit saved for future use. Local utility companies compensate solar customers for any additional credits not redeemed during the year. The customer will receive a fee based on a set rate per kWh of excess energy.
How to Enroll for Net Energy metering in Florida
Individuals with renewable energy systems can enroll in net energy metering at local utility companies. Applications can be made online or in person.
Upon application approval, the utility company will replace the customer’s current electric meter with an eligible meter to correctly measure excess power supplied to the grid. Local utility companies must keep track of all solar systems linked with their NEM infrastructure.
They must also file NEM reports with the Florida Public Service Commission (PSC). The report should contain information on the types of solar systems connected to the utility’s NEM infrastructure, the location, and the quantity of solar energy generated. Florida does not have an aggregate capacity limit for energy that is generated with net-metered solar systems.
Florida’s Solar and CHP Sales Tax Exemption
Florida’s solar and CHP sales tax exemption is a benefit that excludes homeowners from solar systems sale taxes ( F.S.§ 212.08(7)(hh)). The Florida Solar Energy Center certifies the following solar energy system or component for sales tax exemption:
- Solar collector: This system gathers energy from the sun and converts it to electricity. Eligible collectors are solar photovoltaic-powered attic fans and pool blankets.
- Pump and controls: This equipment regulates fluid circulation between the storage medium and the collector.
- Photovoltaic power conditioning equipment: It converts current received from photovoltaic arrays into energy for consumption and transfers the excess to the electric utility grid.
- Storage unit: It receives direct current from the solar system and retains it for future use.
- Accessories: Things used as an integral part of a solar system like air dampers, air vents, assorted bolts, nuts, washers, and screws, drain down reservoirs, heat exchangers, convectors, radiators, and direct current wiring are exempted from sales taxes.
- Integrated systems: Products like Sooriyan Solar Water Purifier, Tubular skylights and Linne Industries PondHawk are exempted from sales tax.
The Florida Department of Revenue requires solar system sellers to have proof of exempt sales. The Tax Information Publication (TIP) 19A01-09 has a suggested form to be signed by the purchaser for documentation.
Florida Property Tax Exemption
The Florida Department of Revenue provides a property tax exemption for residential and non-residential owners with solar installations.
To calculate the property tax exemption, the property appraiser will not consider 100% of the increase in residential property value that results from solar energy (F.S.§ 193.624). In contrast, 80% of the increase in non-residential property value will not be considered.
Note: Florida's property tax exemption only applies to new and existing residential real properties with solar systems installed on or after January 1, 2013.
It also applies to non-residential properties where solar systems were installed on or after January 1, 2018. This excludes commercial properties where the solar installation was part of a planned project in a fiscally constrained county and for which country-specific amendment and development applications have been filed on or before December 31, 2017. Property owners with solar installations are not required to apply for property tax exemptions. This benefit goes into effect automatically upon eligibility.
Florida Property-Assessed Clean Energy (PACE) Financing
Florid'sa Property-Assessed Clean Energy (PACE) program funds property owners seeking energy conservation and hurricane-hardening improvements to their private properties.
PACE’s interest rates are lower than any credit card interest rates for financing home upgrades. Interest rates are typically between 6% and 9%, and no down payment is required. The PACE financing program is divided into:
- Residential PACE (R-PACE): It covers one-to-four-family residential properties.
- Commercial PACE (C-PACE): It covers multifamily (5+ family homes) and commercial properties like retail, hotels, and industrial.
With PACE financing, property owners can cover 100% of the cost of qualifying improvements. Per F.S. §163.08, the qualifying improvements eligible for PACE financing are wind resistance, energy conservation and efficiency, and renewable energy improvements. Some examples of such improvements are:
- Roof deck attachment improvement
- Windows replacement
- Solar energy
- Efficient lighting
- Secondary water barrier
- Wind-resistant shingles
- Air sealing
- Bioenergy
- Storm shutters installation
- Electric vehicle charging equipment installation
- Opening protections installation
- Energy-efficient heating, cooling, or ventilation systems installation
The money obtained through the PACE program can be repaid through a special assessment added to the annual property tax bill. The PACE finance program has a fixed interest rate and an agreed-upon repayment term. Property owners can prepay
PACE assessments anytime, but R-PACE excludes prepayment fees. This is because the R-PACE assessment is attached to the property, not the owner. Therefore, if the property is sold before the end of the assessment term, the balance remains with the property. The repayment obligation will be transferred to the new property owner upon sale.
Florida Household Profile
As of 2022, Florida had a resident population of over 22 million. In 2021, Florida had over 10 million housing units, with approximately 66.5% of them owner-occupied and 33.5% renter occupied. That same year, about 213,494 building permits were issued by city and county Building Departments. Between 2017 and 2021, owner-occupied housing units had a median value of $248,700. In contrast, the median gross rent was $1,301.
