Florida State Solar Power Rebates, Tax Credits, and Incentives

With all those miles of sandy beaches and groves of orange trees, who could argue with naming Florida the Sunshine State? From Tallahassee to Miami, and at all points in between, Florida has an amazing outdoor environment warmed by the sun. Is there a more perfect location for using solar energy resources? Read on to find out what the Florida legislature is doing to promote clean energy and protect the environment.
STATE LEGISLATION
In July 2007, Governor Charlie Crist signed two executive orders (EO 126 & 127) calling for Florida to increase its use of renewable energies, including solar power. However, upon backing up this order with some real regulations, Crist has come under fire from his political opponents. Before his tenure, the legislature did manage to pass the Florida Energy Act in 2006. This set aside money for grants and rebates. In particular, the act offers a $0.01/kWh credit to power companies that use renewable energy. This act also established a grant program for corporations and other organizations to research and develop renewable power sources.
NET-METERING
Florida does not have a net-metering policy yet. Utilities get to make it up as they go. There are interconnection standards for systems up to 10kW though. For example, JEA offers net-metering for residential users, but not to commercial customers. The net excess power generated is credited to the customer’s account. On the other hand, the Tallahassee Electric Utility does not compensate customers for net excess power generated at the end of a 12-month billing cycle.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
As part of the 2006 Florida Energy Act, the Solar Energy Systems Incentives Program offers rebates for individuals or businesses to purchase solar photovoltaic, solar thermal, and solar thermal pool heating systems. Solar photovoltaic systems are eligible for a $4/watt rebate, capped at $20,000 for homes and $100,000 for businesses. Solar thermal systems are eligible for a $500 residential rebate or $15/BTU, capped at $5,000 for businesses. Rebates of $100 are also available for solar thermal pool heater installation.
Wanna put in a Solar Energy System in Florida? Solar Energy Systems Incentives Program Rebate can help. Here is their application and FAQ. This program is HUGE. You can get $5000 for a solar water heater and FOUR DOLLARS A WATT for a photovoltaic solar system. So say the standard home system installed is 3kW, you’re gonna get $12,000 from the state! Match that with the federal $2000 tax credit and you’re looking at a VERY cheap system. (Note: this money is first come first serve. They have $3.5 million allocated).
- If you are a business solar systems and solar water heaters, among other things, are tax exempt:
- SunSmart Schools - Are you a school and you want Florida state money to install a solar power system in your school? The SunSmart program is funded by the state and managed by Florida Solar Energy Center
- Are you a homebuilder in Florida? Sunbuilt has incentives in the form of rebates for Solar Water heaters, in addition to other services.
Solar Energy Systems
Solar energy systems and the components of such systems as certified by the Florida Solar Energy Center (FSEC) are exempt from tax under Section 212.08(7) (hh), F.S. The term “solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity.”
Check out the rest of the incentives available to Floridians:
Corporate Tax Credit
* Renewable Energy Production Tax Credit
* Renewable Energy Technologies Investment Tax Credit
Other Incentive
* Lakeland Electric - Solar Water Heating Program
Sales Tax Exemption
* Renewable Energy Equipment Sales Tax Exemption
State Grant Program
* Renewable Energy Technologies Grants Program
State Rebate Program
* Solar Energy System Incentives Program
Utility Grant Program
* City of Tallahassee Utilities - Low-Income Energy Efficiency Grant Programs
* Orlando Utilities Commission - Home Energy Efficiency Fix-Up Program
Utility Loan Program
* City of Tallahassee Utilities - Energy Efficiency Loans
* Clay Electric Cooperative, Inc - Energy Conservation Loans
* Gainesville Regional Utilities- Low-Interest Energy Efficiency Loan Program
* Orlando Utilities Commission - Residential Insulation Loan Program
Utility Rebate Program
* Central Florida Gas - Residential Home Builder Energy Efficiency Rebate Program
* Central Florida Gas - Residential Water Heater Retention Program
* Clay Electric Cooperative, Inc - Energy Smart Energy Efficiency Rebate Program
* Clay Electric Cooperative, Inc - Energy Smart Solar Water Heater Rebate Program
* Clearwater Gas System - Builder Sales Energy Efficiency Program
* Florida City Gas - Residential Builder Energy Efficiency Program
* Florida Power and Light - Business Energy Efficiency Rebates
* Gainesville Regional Utilities - Commercial Energy Efficiency Rebate Program
* Gainesville Regional Utilities - Natural Gas Appliance Rebate Program
* Gainesville Regional Utilities - Residential Energy Efficiency Rebate Program
* Gainesville Regional Utilities - Solar Electric (PV) System Rebate Program
* Gainesville Regional Utilities - Solar Water Heating Rebate Program
* JEA - Solar Incentive Program
* Orlando Utilities Commission - Residential Energy Efficiency Rebate Program
* Progress Energy Florida - Commercial Building Envelope Improvements Program
* Progress Energy Florida - Commercial Equipment Rebate Programs
* Progress Energy Florida - Home Energy Check Program
* Progress Energy Florida - Solar Water Heater with Energy Management Program
* Tampa Electric - Residential Energy Efficiency Rebate Program
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
Florida’s solar rating is Good, which means Floridians should have no trouble generating power from a photovoltaic system like the one in this sample. A typical 3kW system in Jacksonville might cost about $54,000, which seems a little steep until you factor in the State tax rebate of nearly $20,000. With all that savings, the system should pay for itself in about 16 years. All the while, you’ll be saving an average of over $800/year, by using solar electricity.
Building Type:
Residential
State & County:
FL – Duval
Utility:
Jacksonville Electric Authority
Utility Type:
Municipal Utility
Assumed Average Electric Rate:
Please check against your bill
$0.0759 /kWh
Assumed Average Monthly Electricity Usage: Please check against your bill
1,300 kWh/Month
Your Average Monthly Electricity Bill:
(Assumed rate x average monthly usage)
$99 / Month
Tiered Rates Apply:
No
Time-of-Use Metering Offered:
No
Net-Metering Available:
No
ESTIMATED SYSTEM SIZE
The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 4.80 kW and 7.20 kW of peak power. This estimate assumes the mid-point of this range.
Solar Rating:
(4.991 kWh/sq-m/day) Good
Solar System Capacity Required:
6.00 kW of peak power (DC watts)
Roof Area Needed:
600 sq-ft
ESTIMATED SYSTEM COST
This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 6.00 kW peak power system will cost between $43,200 and $64,800. This estimate assumes the mid-point of this cost range.
Assumed Installation cost: (before rebates, incentives or tax credits).
$54,000 assuming $9 /watt
Expected Jacksonville Electric Authority Utility Rebate:
(Limited to not exceed state max. incentive amount)
($0)
Expected FL State Rebate ($4/watt installed) (Maximum: $20000)
($19,440)
FL State Tax Credit/Deduction
($0)
Federal Tax Credit: (Installation type: Residential )
($2,000)
Income Tax on Tax Credit:
$0
YOUR ESTIMATED NET COST:
$32,560
Monthly Payment (6.5% apr, 30 years):
$206
SAVINGS & BENEFITS
Increase in Property Value:
$10,200
Exempt from Property Tax:
No
Accelerated (5 yr) Depreciation:
Installation type: Residential )
No
First-year Utility Savings:
Since this is not a business application, these savings are in after tax dollars. So, your realized savings may actually be higher!
$510
Average Monthly Utility Savings:
(over 25-year expected life of system)
$71
Average Annual Utility Savings:
(over 25-year expected life of system)
$856
25-year Utility Savings:
$21,400
Return on Investment (ROI):
(with Solar System ave. cost set as asset value)
159%
Return on Investment (ROI):
(with Property appreciation set as asset value)
507%
Years to Break even:
(Includes property value appreciation)
16 years
Years to Break even:
(Assuming no property value appreciation)
23 years
Greenhouse Gas (CO2) Saved:
over 25-year system life
160.0 tons (320,000 auto miles)
CONSENSUS
Bring the Sunshine back to Florida! With the reputation sunny Florida has, that the legislature has done so little to promote clean energy, especially solar power, is almost unforgivable. Governor Crist is taking a step in the right direction, but he needs lots more help from lawmakers to get the ball rolling in Florida.
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