Florida is the 10th sunniest state in the US, averaging 237 days of annual sunlight. This effectively makes the Sunshine State one of the prime locations for solar investment due to its abundant sunshine. However, like everywhere in the US, there is always the cost of a commercial solar investment which can be quite high. In 2024, despite the price of solar panels having fallen by 47% in the last 10 years, a 50kW system will cost you $121,640. This high cost of solar is why there are several commercial solar incentives Florida-based businesses can explore. We have covered the various financial incentives and tax breaks available to Florida commercial solar users. 

Modified Accelerated Cost-Recovery Systems (MACRS)

MACRS is a federal corporate depreciation incentive for businesses with solar systems. This incentive assists solar system owners by offering accelerated depreciation deductions for their solar investments. This means that owners can deduct a significant portion of the cost of their solar system from their taxes over a shorter period, typically five years. By accelerating these deductions, the MACRS program provides solar system owners with substantial tax benefits, reducing the overall cost of their solar investment and accelerating their return on investment. Bonus depreciation steps down by 20% each year beginning in 2023.

Business Investment Tax Credit (ITC)

One of the most common solar incentives for businesses in Florida is the ITC. This is corporate tax credit that can pay 30% of your solar system cost. This means that if you spend $121,640 on a 50kW solar system, you can potentially get back $36,492 in tax credits in the next tax year. To take advantage of this tax credit, your solar systems must have been placed in service in 2022 or later and begin construction before 2033.

Renewable Electricity Production Tax Credit (PTC)

Sitting next to the ITC for commercial solar incentives that Florida-based businesses can take advantage of is the PTC. This is also a corporate tax credit but unlike the ITC which pays 30% upfront of your solar system cost, the PTC offers a performance-based system.

The PTC pays a per kilowatt-hour (kWh) tax credit for electricity generated by your solar system for the first 10 years of its operation. While the credit can offset the upfront cost of your solar system, how much the PTC saves you will depend on how much electricity is generated (system size). It is also important to note that you cannot claim the ITC and PTC for the same property. To take advantage of this tax credit, your solar project must meet the labor requirement issued by the Treasury Department and the system must be less than 1 MW in size.

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Net Metering in Florida 2024

Most states in the US offer a reward-based system known as net metering for compensating solar users who generate more energy than they need per time. Net metering in Florida allows solar customers to send their excess energy to the grid and earn credit toward their utility bills for days when the solar system isn’t generating enough electricity. At the end of any 12 month period, the utility company is required by the Florida Public Service Commission (PSC) to pay any excess credit at the utility’s avoided cost rate to the customer. The commission also adopted rules to allow solar systems up to 2MW with a 3-tier setup. This allows commercial-sized systems to take advantage of net metering in the state depending on their system output. Below are the various Tiers and what they offer:

Solar Capacity	Tier	Application Fee
Up to 10 kW	Tier 1	None
>10 kW up to 100 kW	Tier 2	$400 for FPL and $240 for Duke Energy
>100 kW up to 2,000 kW	Tier 3	$1,000 for FLP and $750 for Duke Energy

How to enroll in net metering (billing) in Florida

To enroll in net metering in Florida, customers must follow the eligibility requirement set by the Florida Public Service Commission. These include the following:

1. Ensure Compliance with Electrical Codes: Before proceeding, ensure that your solar panel system meets the National Fire Protection Agency (NFPA) National Electrical Code requirements for safety and performance.
2. Install a Compatible Inverter: Your solar system must have a UL 1741 solar inverter capable of disconnecting from the grid during a power outage or a visible disconnect switch. Verify that your inverter meets these specifications before proceeding.
3. Request Bidirectional Power Meter Installation: Contact your local utility company to request the installation of a bidirectional power meter. This meter will measure both the electricity you consume from the grid and the excess electricity your solar panels feed back into the grid.
4. Obtain Approval from Local Inspectors: Schedule an inspection with a qualified local inspector to ensure that your solar panel system meets all applicable building and safety codes. Upon approval, you’ll receive the necessary documentation to proceed with enrollment.
5. Pay Application Fees (if applicable): Some utility companies in Florida may require solar PV system owners to pay an application fee to enroll in net metering. Ensure that you fulfill any financial obligations associated with the application process.
6. Submit Enrollment Documents: Once you’ve met all eligibility criteria and fulfilled any necessary requirements, submit your enrollment documents to your utility company. These documents may include proof of inspection, insurance certificates, and any required application forms.

By following these steps and ensuring compliance with all requirements, you can successfully enroll in the net metering program in Florida and start enjoying the benefits of solar energy while saving on your electricity bills. These steps are usually taken by a solar company like Commercial-Solar.org.

Additional Local Commercial Solar Incentives Florida: Incentives, Rebates, & Grants

Unlike most states, there are currently no local commercial solar incentives available in Florida for PV systems in 2024. In earlier years, several utilities including Florida Power and Light and Duke, the biggest utilities in the state offered rebates for solar systems. However, these have all been stopped. Although, you can still enjoy a sales and property tax on all solar equipment in the Sunshine State. We have also curated some federal grants local businesses in Florida can take advantage of and how you can take advantage of the state’s sales and property tax.

USDA – Rural Energy for America Program (REAP) Grants

Agriculture in the Sunshine State is approximately worth $160 billion making it a prime location for the USDA grant. This program offers agro and rural businesses up to $1 million to pay for 50% of their solar system. The program has seen an increase from 25% and $500,000 to what it offers today. As of 2024, the program is still undergoing several changes according to the USDA website which may include the infusion of funds from the IRA. You will also find the application process on their website.

Property Tax Abatement for Renewable Energy Property

The property tax abatement for solar systems is a commercial solar incentive in Florida that offers an 80% property tax abatement on energy upgrades like solar systems. This means that depending on your current tax rate, the additional value brought on by a solar system will only attract an extra 20% of the property tax on the assessed value of the renewable energy equipment. Properties are automatically exempted from your property tax value during evaluation.