Florida Solar Incentives and Rebates Guide
Key Takeaways
- The sunny state of Florida has plenty of local incentives to take advantage of—no matter if you live down in the Keys or up in the Panhandle.
- Federal incentives such as the federal solar tax credit offer residents of Florida a 30% tax credit through the year 2032.
- Local programs include loans and rebates that are offered by electric companies and funded by banks, faith-based organizations, and general crowdfunding.
- Net metering offers Florida residents a chance to save on their electric bills by using the energy generated by their own solar panels.
Nicknamed the Sunshine State, Florida has plenty of financial incentives to make the switch to solar power easier than ever before. State, local, and federal programs can make it easy to save, whether you are located in the Panhandle or closer to the Miami beaches.
We’ll examine how local electric companies can provide substantial long-term loans for installing specific solar equipment. Rebate programs offer money back on otherwise costly initiatives such as installing solar panels and water heater systems.
Let’s take a closer look at the various Florida-specific programs available.
Florida Solar Incentives
Solar Sales Tax Exemption
According to the Database of State Incentives for Renewable and Efficiency (DSIRE), the Florida Department of Revenue offers a sales tax incentive (without a limit) for agricultural, residential, and commercial sectors. The equipment must be certified by the Florida Solar Energy Center in order to be eligible for sales tax exemption.
Property Tax Exemption
The Property Tax Abatement for Renewable Energy Property is a state-offered financial incentive that is set to expire in 2037, giving you plenty of time to take advantage of its savings.
Not just for homeowners, this incentive allows for 100% of the added property tax amount for residential property owners and 80% for non-residential. This incentive means that property owners’ overall property taxes won’t increase even after they add solar equipment.
According to DSIRE, eligible equipment includes solar energy collectors, photovoltaic modules, and inverters.
The Statewide Solar and Energy Loan Fund (SELF)
Florida’s SELF is a loan program designed to provide access to affordable and innovative financing for sustainable property improvements, with the primary focus on energy efficiency, renewable energy, and climate resilience in low- and moderate-income neighborhoods.
Home improvement loans for individual homeowners are available for up to $50,000 to buy solar thermal and solar photovoltaic systems. Banks, general crowdfunding, investors, and faith-based organizations help support this program.
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Local Incentives
Florida is a big state with tons of geographical diversity beyond beaches. Many residents live in cooler climates, while others are closer to the Caribbean. But no matter where you are located, local incentives abound.
Mostly a mix of rebate and loan programs, the following programs exist to ease the financial burden when it comes to going solar.
Tallahassee
The City of Tallahassee Utilities offers its residents a loan program with a 5% interest rate. This program allows residents to borrow up to $20,000 for their photovoltaic (PV) systems. Solar pool heating (a welcome necessity for most Florida pool owners) and solar water heat are also eligible for this loan.
Like other program stipulations, solar water heating systems must be certified by the Florida Solar Energy Center.
Orlando
Similar to Tallahassee, the city of Orlando offers its residents a rebate program through its local utilities company, offering various incentives.
For homeowners looking to invest in a solar thermal water heater, for instance, this program can offer a rebate for 100% of the cost, up to $900.
Miami-Dade County
For those living in Miami-Dade County, the Green Building Expedited Plan Review is a program to help foster green building designs and construction. This project is limited to new construction in the commercial, residential, and industrial sectors and applies only to projects that cost $50,000 or more.
Fort Pierce
The Fort Pierce Utilities Authority offers Fort Pierce residents rebates on various clean-energy projects. For example, those who want to install solar hot water heaters can get up to $450 back per unit.
The program website discusses stipulations such as adhering to certain energy-efficient standards.
The Florida Keys
For those who live in the sunny Florida Keys, the Florida Keys Electric Cooperative Solar Loan Program offers up to $35,000 for a maximum of 10 years for the purchase and installation of a solar energy system.
Those looking to fund a solar panel installation can obtain this loan funded by the Florida Keys Electric Cooperative.
Federal Tax Credits
Federal Solar Tax Credit
Florida residents can additionally benefit from federal incentives and tax credits. The Inflation Reduction Act of 2022 introduced the federal solar tax credit, or investment tax credit (ITC), available to all U.S. homeowners. This program provides a 30% tax credit for solar systems installed between 2022 and 2032. For installations completed in 2033, homeowners can receive a 26% tax credit, and for those in 2034, a 22% tax credit. Notably, this federal program has no financial limit, allowing individuals with large solar installations to maximize their savings. Additionally, there are federal solar tax credits for businesses.
| Through 2032 | 30% |
|---|---|
| 2033 | 26% |
| 2034 | 22% |
Business Energy Investment Tax
Another federal program is the corporate tax credit for business owners. This program is specifically designed for agricultural, industrial, and commercial sectors. It was amended by the Inflation Reduction Act of 2022 and offers credits for projects that are over or under 1 megawatt. This federal tax credit also extends to projects built in low-income communities. To help determine if your project is located in a low-income area, the U.S. Department of Energy established a GIS map that highlights qualifying low-income communities. These projects may be eligible for additional bonuses.
Net Metering in Florida
The Florida Public Service Commission offers residents net metering, which involves harnessing the excess energy of your solar panels to reduce your electric bills.
Here’s how it works: During brighter, sunshine-filled hours (which Florida has no shortage of), your solar system may generate more energy than you consume. Within this time, residents are not charged anything, since they are producing their own energy. At night or on cloudy days, residents would then be charged at their regular rate of electric usage. Excess energy would be credited to the customer’s next bill at the regular retail rate.
In this way, residents with solar panels are making the power of the sun work for them.
According to DSIRE, net metering is not limited to homeowners; all sectors, including commercial, industrial, nonprofit, residential, schools, agricultural, and institutional, can take advantage of the program.
PACE Financing
While Florida does not have a Solar Renewable Energy Certificate (SREC) program, it does offer PACE Financing. This stands for Property-Assessed Clean Energy and allows residents of certain counties to obtain financing for their solar improvements.
The state offers two types of PACE programs: one for commercial properties and one for residential.
PACE works at a local level—you would need to contact your city or county to see which opportunities you may be eligible for.
One of the benefits of PACE financing (also offered in other states) is that the loan is tied to the property, not to the owner. That way, if the owner were to sell the property, the loan would still be attached to it and transition to the new owners.
For homeowners who decide to move before a loan is paid off, this type of financing can help make the decision to switch to solar easier.
Impact of Payback Period on Solar
The big question that people have when considering the switch to solar is: How soon can I expect to see savings?
With high upfront costs and promises of rebates and financing, the uncertainty as to when their initial investment will pay off can cause people to hesitate. This is why it is important to know what a typical payback period is for solar energy equipment. A payback period for a solar energy system investment is the length of time it takes for the savings generated by the investment to match its cost.
Payback periods ultimately depend on the size of the solar installation and local electricity rates. When determining your payback period, take into consideration your incentive eligibility, the overall cost of your solar power system, and your average electricity rates. The payback period in Florida is about 8 to 14 years.
| Typical 6kW solar system installation cost | $17,700 |
|---|---|
| 30% Federal Tax Credit | $5,310 |
| Total Cost After Incentives Not including local incentives, which vary | $12,390 |
| Assumed Electricity Produced by a 6kW Solar System in Florida | 9,871 kWh |
| Annual Electricity Cost Reduced or Offset Assuming 100% utilization by the home | $1,508 |
| Sample Payback Period | 8 years |
Sources: https://www.nrel.gov/docs/fy22osti/83586.pdf, https://globalsolaratlas.info/map (Miami); https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
Conclusion
Residents of Florida may be pleased to know that the Sunshine State offers plenty of options to harness solar energy. Between rebates and loans, and federal, state, and local programs, there is an abundance of opportunities to help individuals and organizations finance their solar installations and save money on their electricity bill.