December 27, 2022 solaroneusa

Commercial Solar Incentives in Florida

Commercial Solar Incentives in Florida

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. 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

One of the most significant incentives for commercial solar in Florida is the federal solar tax credit, also known as the Investment Tax Credit (ITC). This credit allows businesses to claim a credit for 26% of the cost of their solar system on their federal income taxes. In addition, Florida offers a number of state tax credits and exemptions for the installation of solar energy systems. These credits can significantly reduce the upfront cost of a commercial solar project.

Net Metering

Net metering is another important incentive for commercial solar in Florida. Under net metering, businesses with solar panels can sell excess electricity back to the grid at the same rate they pay for electricity from the grid. This allows businesses to offset the cost of their electricity usage with the income they receive from selling excess solar energy.

Florida Renewable Energy and Energy Efficiency Incentives

The Florida Renewable Energy and Energy Efficiency Incentives program provides funding and incentives for businesses to adopt renewable energy and energy efficiency technologies. This includes solar energy systems, as well as a range of other technologies such as LED lighting and HVAC systems.

In the past there were more tax funds available for solar investment projects. Unfortunately the application window for the Florida Renewable Energy Tax Incentives is closed and the Office of Energy is no longer accepting applications. The Florida Renewable Energy Tax Incentives consisted of three tax incentive programs which represented a total of $89 million in potential tax credits or sales tax refunds over the life of the program.

  • The Florida Renewable Energy Technologies Sales Tax Refund, which provided $1 million per fiscal year for a refund of previously paid Florida sales tax for eligible expenditures;
  • The Florida Renewable Energy Technologies Investment Tax Credit, which provided $10 million per fiscal year for an annual corporate tax credit equal to 75 percent of all eligible costs made in connection with the production, storage and distribution of biodiesel, ethanol and other renewable fuel; and
  • The Florida Renewable Energy Production Credit, which provided $5 million for the first fiscal year of the program and $10 million for subsequent years for an annual corporate tax credit equal to $0.01/kWh of renewable electricity produced.

Property Tax Exemptions

Florida offers property tax exemptions for renewable energy systems, including solar panels. This can provide an additional financial incentive for businesses looking to go solar.

Other Incentives

In addition to the incentives listed above, there are several other programs and incentives available to businesses in Florida looking to go solar. For example, the Florida Solar Energy Center provides resources and assistance to businesses interested in solar energy. The Florida Department of Agriculture and Consumer Services also offers grants and loans for renewable energy projects through its Renewable Energy Technologies Program.

Conclusion

There are many incentives available to help businesses in Florida finance and install commercial solar systems. From tax credits to net metering and funding programs, these incentives can significantly reduce the upfront cost of a solar project and help businesses save on energy costs in the long run.

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