2024 Florida Commercial Solar Incentives & Rebates

Florida Commercial Solar Incentives

Curious about commercial solar in Florida? Florida is a great state for businesses in manufacturing, retail, and much more to go solar, thanks to a combination of strong sunlight and a number of incentives designed to encourage the adoption of renewable energy. Incentives for switching to solar panels are growing yearly as a way to save money, get tax breaks, and help the environment along the way. Whether you are a homeowner, business owner, or cooperative housing corporation member, solar incentives are available in the state of Florida. The only caveat is that you cannot claim tax credits if leasing solar panels; you must buy and convert to a solar panel system. Learn more about how to claim the available incentives and rebates if you reside in Florida. In this article, we will explore some of the incentives available to businesses in Florida looking to install commercial solar systems.

State and Federal Tax Credits

Available 2024 Commercial Incentives for Switching to Solar Energy in Florida

Federal Solar Tax Credit

For 2024, a federal solar tax credit is currently valued at “30% of your total Solar photovoltaic (PV) system cost”. (Marketwatch.com, 2024) As mentioned, this is not available for leased products, only those that are owned by the homeowner, co-op member, or condo owner. The credit can be claimed within the tax year that your individual system is turned on after being approved by your local utility agency. While this credit can only be claimed once, the savings from the use of solar energy will last a lifetime. Additionally, if your tax liability is less than the credit, the amount will not be refunded but applied to future tax liability. All that is required is to provide the IRS with the proper documentation along with your tax return. This documentation is available from any reputable installer.

Specific Incentives for Florida

Florida is known as the Sunshine State, which has helped it become among the top three states to go solar in the last five years. There is enough solar installed in Florida to power over a million homes, which means many new and old homeowners can take advantage of the option. Florida offers incentives such as solar sales tax and property tax exemptions to help defer short- and long-term costs. Many areas also offer net metering and local benefits beyond statewide incentives.

Solar Equipment Sales Tax Exemption

The sales tax exemption for solar in Florida was originally started to only last for five years, but this has been made a permanent benefit that applies to the retail rate of solar panels, solar heaters, and combined power and heat systems. The exemption is available for residential, agricultural, and commercial uses, meaning homes and businesses can take advantage. The only requirement is that the solar equipment be purchased from a seller that has been certified by the Florida Solar Energy Center to meet qualifications.

FL Property Tax Incentives

Additionally, when making the switch to solar, homes can increase in value, which would typically increase the assessed value of the home and increase property taxes. However, in Florida, you are not taxed any additional amount after installing solar panels, even though the property value may increase. The amount saved will depend on what area of Florida the home is located.

Net Metering in Florida

Net Metering in Florida

Net metering can also be helpful for both the homeowner and the power company. Net metering is focused on the amount of energy your solar panels are able to produce. This is sun dependent, and when solar systems reach their highest output, typically around noon, the energy production may be more than what is necessary for your home or business. Net metering allows you to earn credits when this happens. The excess solar energy is sent to the local electric grid, and the credits are applied to your bill, saving you money over time while helping others.

To qualify for net metering in Florida, your system must meet the NFPA, National Fire Protection Agency, and National Electrical Code. Additionally, you are required to have a UL 1741 solar inverter that is capable of disconnecting from the grid when a power outage occurs or some visible disconnect switch. A bidirectional power meter that is installed by a local utility company and approved by a qualified local inspector is also necessary. Furthermore, some areas require the system owners to pay an application fee and show proof of liability insurance to participate, but this typically applies to systems above 10kW only.

Local City Incentives

Local incentives in Florida have existed in the past based on specific regions or cities, but most of these incentives have been removed in large part. That said, new incentives are being updated often and may be offered in the future. Most reputable solar installers will be highly knowledgeable about any current incentives. Some areas, like the Jacksonville Electric Authority (JEA), still offer incentives for energy efficiency for things like solar water heating.

Financial Benefits

Given that Florida has an abundance of sunshine, the savings when going solar are obvious. However, for those on the fence, let’s look at average savings when installing solar. According to the World Bank Global Solar Atlas, a kilowatt of solar capacity in Florida generates between 1500 and 1700 kWh of energy yearly. Most homes have a solar capacity of 5 to 10 kWh. The average price per kWh for residential consumers in Florida is 14 cents, meaning your solar output could save a little over $1,000 yearly. If that is not enough, Florida residents also get back the 30% federal tax credit that reduces installation, and the remaining cost can be paid back within ten years. Though ten years sounds like a long time, solar panels last up to 30 years, which means many years of seeing a return on investment.