Florida Solar Incentives

Florida residents are eligible for federal solar investment tax credits (ITC) that can help offset the cost of installing solar panels. Under the ITC, homeowners can claim 26% of the cost of solar panels on their 2022 tax returns, including the cost of the system, personnel, energy storage technology, and other expenses. For example, if a solar panel system costs $10,000, the homeowner could claim a tax deduction of $2,600. This amount can be reimbursed or applied to their tax debt, depending on their tax situation.

In addition to federal credits, Florida residents can also take advantage of several state and local incentives. For instance, the state offers a sales tax exemption for solar panels, allowing residents to avoid paying the 6% sales tax on these products. However, net metering incentives, which allow solar panel owners to sell excess energy back to their utility company, are set to be phased out by 2029. Local incentives, such as rebates and grants, may also be available to residents in some communities.

To apply for the federal ITC, homeowners should visit the IRS website and print out form 5695. The form should be completed with the name and address of the solar panel installation company and some details about the appliances in the home. The form can be submitted with the homeowner's taxes or through tax preparation software.

You can learn more about the federal solar tax credit here. 

Net metering in Florida

Net metering is a billing mechanism that allows your solar panels to give you a credit for putting electricity into the grid. When your solar panels produce more electricity than you can use, the leftover energy is back on to the grid and you get credit for the energy you produced.

Florida has favorable net metering standards that make it easy for homeowners to connect to the grid and get bill credits for the energy they put into it. You can find more information on the Florida Legislature website.