Florida State Solar Power Rebates, Tax Credits, and Incentives

Colin

An investment in PV can be an expensive proposition. To completely power a 42KWH / day electrical habit (my house) you require a 6KW system and a generous 7 hours of sunshine (bank on 6 at best). At $9 / watt installed – $54K (minus $2K fed, $18K state) that still leaves $34K to finance. A better idea is to tackle the hungriest appliance first – the water heater. This device uses up to a third of electrical usage – 14KWH / day in my case. A solar water heater cost me $3900 installed – I should get back $500 state incentive and $1170 FED (30%) – leaving $2230 to recoup. At 10 cents a KWH thats $42 / mth savings – or 5 years ROI give or take. Heated water is kept hot in a tank – so the benefits span cloudy days – and water is hot at night. Solar water heating generates further benefits – the home user sees the savings – and can see the light at the end of the ROI tunnel, the leap to PV may make more sense. Also, the 42KWH / per day appetite is now 28KWH – a 3KW system along with the conservative nature that comes with PV ownership will just about delete an electric bill. Also, you do something now – a year of the sun heating your water may see lower $/watt install prices, bigger incentives, etc.

Colin

Put in a solar water heater first – it saves about a third of your electrical usage, whets your appetite for PV, lowers the amout of PV you need, and almost half is covered with rebates.

jim c

I would break even to cut the power company out. They are at an endless increase….

Mary Guler

I’d be interested in knowing the cost benefit comparison of solar hot water to tankless hot water, which is also reported to generate great savings.

Joseph LaRocca

i would like to know if the power that be.Have thought of any type of incentive. That would give a real incentiv for the Sr.population. They could realy use the savings it would give but it would take to long to realize the help. We have the need. the place and the time.to give it a try we could be the test group to show how well it works. And the time to record the the way it works. I would be glad to be a test paintent.

charles longieliere

how can i find the status of my rebate for solar water heater

DOUG B

IF SOLAR IS SO GOOD WHY CAN’T THEY MAKE IT MORE AFFORDABLE FOR THE AVERAGE PERSON

Cirag

I really want to do this (I live in sunny Fort Lauderdale), but the state rebate of $20,000 has been exhausted, and it doesn’t look to be renewed. Take away the $20,000 and it’s pretty tough to make the business case for equipping a PV system. Depressing! I would love to hear other thoughts on this.

Dan Hahn

Regarding Mary’s question about the comparison between tankless and solar water heaters, I did a little searching. A lot of people ask about them as an alternative.

Tom Lane, author of Solar Hot Water Systems says: “Tankless water heaters do save space, but not much energy. Numerous tests by independent third parties, have shown only 10% savings versus conventional electric water heaters and 15% to 20% savings versus energy efficient conventional gas water heaters over a 24 hour period. Most manufacturers of these expensive water heater systems exaggerate the savings. Daily savings quotes of 25% or higher versus modern electric or gas water heaters are simply not true. In 2004, hot water manufacturers were required to add additional insulation to all water heaters, making instantaneous water heater savings more insignificant. Tankless water heaters have serious problems with scaling in hard water areas.”

Fixizin

Pretty LAME when the gov’t of a State (FL) with a whopping population of 19,000,000(!), and so much solar exposure, allocates a measly $5MIL for incentives! Of course it’s already gone, since that’ only 250 homes @ $20K each! And every participating business is eligible for up to $100K, which comes from the same pool, and knocks 5 homes out of contention.

Am I the only one who smells the stench of UTILITY LOBBYIST opposition all over this? GRRRrrr…

Susan

In the State of Florida I would think it would be more beneficial if we could run the air conditioners instead of just the water heaters. It should be made more cost effective to the average home owner and for once consider the people not the “profit margin”

lin

From the FPL web site
The solar rebate program is very popular and successful. Due to the large volume of rebate applications received the budget approved for FY2008-2009,$5 million, was exhausted. When all of the funding was exhausted for FY2007-2008, the state continued to accept applications, placing the applicants on a waiting list. This list of approved applications has now reached the $5 million mark and will absorb all of the FY2008-2009 funding upon appropriation. The solar rebate checks will begin to be delivered in mid-July.

karin

I have heard about plans to build your own solar panels at a reduced cost. What are the caveats for that? Thanks.

sister plop

hi people

Beth

There is a program in California to help senior citizens on fixed incomes install solar in their homes. There is an urgent, urgent need for this in Florida now. Progress Energy has been granted, by the Republican appointed PSC, a huge rate increase. Think about summer in Florida without air conditioning. Think about 95 degrees and the humidity of summer for seniors and those with heart and other health problems not being able to run the air conditioning. This is a health emergency in the making and the governor and legislator don’t give a damn.

Ben

The federal incentive is now 1/3 the cost with no cap.

sunshngurl

I’m embarrassed that my state of Florida does not have a more progressive solar program. There should be a solar panel on every roof in the state. Why is this so difficult??? When logic fails, follow the money trail…..

Matthew

What an absolute great way to start and continue the enviroment! The solar water heaters are extremely benefitial financially and enviromentally. I have recently joined a company that speciallizes in solar water heaters as well as panels to heat pools during the cooler months….much more interested in the water heaters. I’m in the central Florida area, if anyone would like some feedback or information e-mail me @ Moore1716@gmail.com

Robert

Hey Beth, that’s why California is bankrupt and Florida isn’t. When the government gets involved in free enterprise, it wrecks the industries. Just look at the auto industry that was forced to finance all the development of all the hybrid cars that no one wants.

Jim

If they want to save POWER than where are the 25 watt electric bulbs, I can’t find them. Remember that they save and you PAY !!

Jim

Vito Buonomano III

Energy Reality in RI:
I have recently started a solar company in RI (neastsolar.com) and I am shocked at the lack of action of people in the North East when it comes to energy conservation. There are still many thousands of homes and business in the North East that have not taken advantage of low cost quick pay back energy efficiency improvements. When you add them all up they have a far greater impact on our environment, local econemy and road to energy independence than alternative energy. Some of us that have lived through the energy conservation years of the 70’s and early 80’s have made the necessary efficiency improvements to our homes and businesses and are ready for alternative energy. We in the Northeast seem to only react when energy prices reaches deep into our pocket. The new President should ASAP consider taxing oil to keep the energy conservation and the alternative energy ball rolling.

David

Taxing a commodity to force consumers to another product?, a little regressive thinking for a progressive business owner. I want the gov’t to tax all of my competition too.

Kel

I’m so close to putting a 3.12 kW system on my home in South Fl but I’m worried about the rebate from the state and the Fed incentive. Two questions:
1-Does anyone know if they are going to replenish the State Rebate money?
2-Is the Fed rebate 30% with no cap, or is $2000?
Both of these will factor in on my decsion. I’m looking at either $10,000 or $22,000 depending on the rebates!!!! BIG DIFFERENCE.

Dan Hahn

Kel,

For sure, the Fed rebate is now 30% with no cap. The cap was removed at the end of 2008. I’m not sure about timing on the Florida state rebate. We’ll try to dig something up for you in the next week.

Cheers,

- Dan

tom koether

nice presentation, seeking full system in stages or on one shot

Sharon

I want to be in the manufacturing process. Live in Florida. What kind of education do I need to land a job in Alternative Energy which I am wanting to do a career change to?

Uwe

Hello over there.I live in germany and was looking for some infos about what is going on now with alternative energy in the us.
I and alot of people here own a solarwater heating system here and it works good.My system is just for the hot water storage but lot of people have it combined with the heating system.
Last dec i decided to invest in a solar energy system.That works too but we get a high support from the energy supplier.
the energy suppliers are forced by law to buy your solar energy for 0.48 cents per kw for systems set up in 2008.2009 is it 0.43 cent now.To compare for the energy i take from the grid i pay around 18 cent.
If i would live in florida i would definately check if i my roof would be a good location for a system.But heat is not good for modules because with rising heat the power production lowers.
If anybody is looking in further info feel free to mail me.:U.Matzel@hotmail.com

Dale

i think that pv panels are the way to go, but the expense is still to large. but i have been working on cutting my electric bill to its bare minimum. At the moment i have it down to 46.00 dollars for the month. between a timer on my hot water heater, and not using my A/C. Thank God for a great breeze. People look at cutting your usage and then re figure your needs in a system. plus look into having a spray foam roof installed. r7 per inch on your roof means that your attic won’t heat up. Just an idea… Thxs

Charles Hinricksen

Solar does rock, I have played with solar for several years and have now powered my entire outside with soft mood lighting plus run 1500 gallons of water thru 3 turtle ponds 24-7. I am really thinking of giving up my job of over 20 years to work in solar but do not really know were to start. any hints would be a great help

Ron

I am a x-fossil fuel project manager and sales rep. I am seeking manufacturing principals to represent in FL and GA.

Thanks, Ron
Southeast Energy Services, LLC

Bob

Are the state rebates for solar power generation treated as taxable income? If so, this seems to be overlooked on most webpages devoted to solar incentives. Can anyone give me an authoritative answer? I learned this at: http://seia.org/galleries/pdf/SEIATaxManual_v3-0_FAQ.pdf

JDub

Can you give updated cost benifit analysis? These numbers apear to be at least 2 years old.

Lisa

State of Florida rebate should not be considered taxable income, per DEP. See http://www.dep.state.fl.us/energy/energyact/files/faq_solar_rebates.PDF

Note that this is an old document and that the comment that the Federal tax credit would be reduced by the FL rebate is no longer valid. This was repealed in the Feb. 2009 Recovery Act legislation.

MIKE

I just think a more appropriate stimulus package would have been once that concentrated on renewable energy. Creation of jobs, protection of our environment and get the economy going again. Instead of giving billions to financial institutions we should have given every household a PV system free of charge.

Steve Louis

Net-Metering has got to be in place for wide residential and commercial use, and to keep power companies honest. The German system that makes it financially advantageous to invest now rather than later by using a declining rate of return year by year should also get potential alternative energy customers off the fence and into the game. Investors like to have a baseline rate of return and guaranteed buyback rates and fixed installation costs get that done.

Amy

Love all the info here. I want to get a good idea about what a solar hot water system should cost, installed. We have about 1,200 sq ft, 3 adults, and want a system that is self-sufficient. That is, with PV to run the pump and electric for backup only.

Tor a.k.a. "Solar Fred"

Hey, Amy.

Solar Hot water’s great!…from what we’ve heard! Right now, we’re trying just to keep up with all of the solar PV/electricity technology and financing and rebates. But of these days, we hope to get to hot water too.

RH

Fossil Fuels will only increase in price. 10 years from now you will be kicking yourself for not installing PV / solar water heaters. Have vision, nothing in life is free.

[...] updated the rebates and incentives available in the great State of Florida. The good news for Floridians is that we’re tentatively bumping our SolarPowerRocks [...]

Brad

Hi there! Thank you so much for this. As an employee of Brite Sky Solar in Jacksonville, we appreciate all you do in spreading the word on solar. One question though. In your example you show the ‘tax credits’ as being multiplied off the ‘after rebate’ price of 15k. My understanding is that the Federal Tax credit of 30% is on the amount paid, before rebates. From dsire.org: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1

If this is not true, please let me know as I want to make sure our customers receive the most accurate answers to their FAQ!

Thanks again

Tor a.k.a. "Solar Fred"

Brad, there is a document linked to that dsireusa.org link your comment. It’s this FAQ from the solar energy society.

In that document, it states–for home owners–

A rebate received by a homeowner in a residential context usually does not have to be reported as
income when the rebate is received from the local utility. A homeowner who does not report the
rebate as income takes a “tax basis” in solar equipment equal to the net amount he paid. In other
words, if the solar equipment has a gross cost of $20,000, but a rebate from the local utility pays
$2,000, then his tax basis in the equipment for purposes of calculating the residential tax credit is
$18,000.

This is what we’re going by. HOWEVER, we are not tax people and there may be other interpretations with the law. That said, most of the solar software estimation calculators that I work with….agree with the above for home owners. Commercial/businesses, I believe you are right …or can be right, depending on the advice of your tax dude/attorney.

CB

You Do Not calculate the 30% FTC after you minus the Rebate. Case in point. Our company was the first to install a commercial customer who just received their FTC from the (DOE) Dept. of Energy for 30% of the total price. The cost of the 25kW PV Solar System was $167,500. The check was sent 2 and 1/2 months after the DOE application was received on September 21, 2009, for the exact amount of $50,250.00 . (Which is 30% of the contract price.) Do you honestly believe the Depart of Treasury issued a check on behalf of the DOE, for the wrong amount?

Tor a.k.a. "Solar Fred"

Ecowise,

You’re absolutely right…for commercial installations. For residents, that formula is not so clear, and guidance we’ve given for residential installs (which are the majority of our readers) is that the 30% is deducted after any state rebate. This comes from the American Solar Energy Society (ASES).

Also, residents are NOT eligible for a tax grant (cash!), which is what your company received. Residents are only eligible for a tax CREDIT, which they can use like cash towards paying whatever they owe the IRS on April 15th. Now, let me hedge a little here, because the actual tax form that gives all official rules for applying that tax credit for residence has not been been written, but again, this is our understanding from the ASES advice. The good news is the IRS will eventually be clearing this up and people will know one way or another. If you do get to take it off the top, tax dudes that I’ve talked to say then it’s going to be INCOME, which is taxable, and then it kind of works out to to the be the same amount.

But for simplicity’s sake, residents should take the 30% after any rebates. Commercial people, you lucky solar people, can take it off the top, but it may be taxed as income.

Steve Dale

Great Information, you guys rock! Thanks for the updated information. I posted your State by State Solar Report here: http://www.nlvca.org/forum/showthread.php?p=4240#post4240
If any of you three guys want to be moderators under our “Renewable Energy Category” please email us we are always looking for informed individuals to get the word out about renewable energy. http://www.nlvca.org/forum/forumdisplay.php?f=35

Dan Hahn

Thanks for spreading the love Steve!

Eric

As of Oct. 30th there is only $640,252.50 left in Florida’s Solar Rebate Program for FY 09-10
Here is the link to verify:

http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission/grants_solar_rebates_incentives

Pat

As of Nov 9th, there is now only $12,464.50 left and they’re still only in June applications.

They’re essentially burning through $600,000 a week or $2.5 million a month.

lindsey

I am interested in solar energy. However even with the incentives it is still cost prohibitive for me. Are there good web sights that inform one on how to build and enstall there own systems?

Tor a.k.a. "Solar Fred"

Lindsey,

Honestly, these DIY (Do It Yourself) kits that you see on the Internet for a couple of hundred bucks are not worth the time and money. Plus, there’s a lot of electrical code problems and they look like Frankenstien on your roof, you don’t qualify for any rebates, it’ll take you a long time to find the material and to make them… I could go on about the challenges. Honestly, though it pains me to say this, I’d rather you wait until you can afford solar and not go solar than to waste your time and money on these solar/wind kits. Solar rebates will come down in Florida there may be some low income programs. Check with your utility.

Vaughn

My neighbor had a solar hot water system installed during the Carter administration and it still works! All of his hot water has been free for decades, thanks to the government’s help. We need to expand governments involvement in helping cut costs rather than making investing into Florida’s power companies more lucrative to the stockholder. Yea Federal government, boo Republican legislature and their lobbiest handlers.

Mike Mitchell

What a great resource! Now I have a place to send a lot of my visitors who keep asking me the same questions about state and federal level incentive programs. As you can imagine, the question comes up quite a lot during tax season. Thanks for again!

Cristine

I just checked the FL site. No rebate money is left as of today 1/25/10. Maybe I should put this on the backburner!! Really too bad!

Tor a.k.a. "Solar Fred"

Cristine, you’re right. Thanks for the update. We hope the program will be refunded again either through a federal program or through Florida. Keep in mind that each utility may also offer a unique program as well, separate from the state. There are many solar hot water programs being offered from each utility. If you’ve got electric hot water, you’ll save huge. Check here or on this site to see if your utility has a solar or energy efficiency program for you.

Thanks again for the update.

norm Grajek

when will florida funds be available for solar residence use ! ????

Tor a.k.a. "Solar Fred"

Norm, if we were political sages, we would be much more respected. Alas, we are simply solar geeks, and we cannot predict when the Florida legislator will gather its golden solar incentive eggs and lay them down for residents again. They are apparently focusing more on large scale utilities. Please yell at your legislator and governor. The greasy wheel…

Sorry we can’t be more help.

Alan

I have installed solar water system and a 4.8kw system here in Florida with the plans of the rebate from the state. Who would we get in contact to see when the money is approved?