Our Guide to Solar Incentives in 2023
Making the switch to solar may come with some upfront costs, but the long-term benefits more than outweigh them. Going solar leads to much lower utility bills, reduced dependence on the energy grid, and a smaller carbon footprint. Aside from the financial benefits, you’re also being a better steward of the planet.
If you’re a Florida resident considering making the switch to solar, there are some generous Florida solar incentives you should be aware of. The government wants to make solar more affordable for the average homeowner, and you should take full advantage of any assistance provided. Here’s a guide to understanding how these tax credits and incentives work, so you can save money and enjoy all the benefits of going solar.
Federal Solar Tax Credit
This tax credit applies to all residents of the U.S., and it’s earned as a percentage of the total cost of installing a solar photovoltaic system. You can use this tax credit to reduce your federal income taxes, and the savings can be significant.
If you install a solar photovoltaic system by the end of 2023, you’ll receive a 22% tax credit for doing so. Homeowners must act fast since the tax credit expires in 2024 unless Congress extends it.
There’s no limit to how much of a credit you can earn, but you must meet the following requirements:
- Install a solar PV system at your U.S. residence.
- The PV system must be installed and producing electricity before December 31, 2023.
- You must own the system by purchasing it outright or financing with a loan.
- The system must be an original installation, new or used for the first time at your residence.
To receive the federal solar tax credit if you’re eligible, complete IRS Form 5695 and attach it to your Form 1040NR when filing your annual tax return.
Solar Property Tax Exemption
While Florida doesn’t offer a state tax credit for solar, there is a property tax exemption to consider. Under Florida law, renewable energy system installations that enhance a home’s property value—including a solar PV system and batteries—are excluded from the property’s overall taxable value.
Home Solar System Sales Tax Exemption
In Florida, all solar energy systems and components are exempt from sales tax. In short, you save 6% of what you’d otherwise pay.
Aside from tax credits and exemptions, Florida allows for net metering by various utility companies. This means that homeowners with solar energy systems may sell power to the electric grid at a retail rate. Your credits are reflected in your energy bill and deducted from your consumption.
Save More and Switch to Solar
Want to learn more about all the benefits and incentives you’ll enjoy when you switch to solar? Reach out to the solar experts at Solar Bear Tampa. We’ll help you take advantage of all programs and savings available to you, so you can start saving money on your energy bills and reduce your carbon footprint right away. Call us today at (727) 471-7442 to learn more!