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If you are planning to install solar panels in Central Florida with a Tier 2 system, you must have proof of Tier 2 insurance. This insurance policy, known as a Personal Liability Policy or PLP, must have coverage of at least $1 million.

This may come as a surprise to many Florida residents who are in the beginning stages of their solar installation, but it is an important requirement to be aware of.

Our pros at Solar Bear Orlando explain what you need to know!

What is the Tier System?

Utilities separate solar systems into tiers, categorized by Kilowatt (kW) system size. Although the exact terms will vary by company, the tiers that are generally recognized throughout Florida include:

• Tier 1: Systems less than or equal to 10 kW
• Tier 2: Larger than 10 kW up to 100 kW
• Tier 3: Larger 100kW

Tier 2 Utility Connections

Tier 2 solar systems start at 11,765 watts and require a $400 one-time interconnection fee and $1 million of personal liability insurance whether on your homeowner’s insurance policy or as an umbrella policy.

Each utility company requires a specific type of disconnect switch that they have access to, and it generally must be near the utility meter. The interconnection of a Tier 2 system is the same, but some additional documentation is required.

The idea behind these Tier 2 requirements goes back to when solar equipment was new and could potentially back-feed power to the grid, endangering utility workers. These requirements are outdated and unnecessary, but they are part of the Net Metering law’s tier system and part of your utility company’s approved interconnection agreement.

Another factor to consider is how much power the utility company can accept from your system. They need to ensure that their transformers and transmission equipment can handle the amount of solar power produced by your system and other net metering customers in the area. Tier 2 interconnections require a bit more on the utility company’s part, justifying the extra costs to ensure the stability of the grid for all users.

Tier 2 Insurance Requirements

Many new solar customers are not aware of the exact terms of their utility company’s Interconnection Agreement. This agreement states that you must have sufficient liability insurance for your system.

Your insurance company might be unfamiliar with this requirement, and confusion can arise if you ask your insurance agent to “insure my solar panels for $1 million.” When discussing insurance for your Tier 2 system, communicate clearly that you need a Personal Liability Policy of $1 million and you should have no problems.

What Kind of Insurance Do I Need?

If you want to install a Tier 2-sized system, your utility company will require proof of a Personal Liability Policy that provides at least $1 million in coverage.

You will also need to provide a financial statement and documentation that proves the value and size of your solar system and insurance.

Why Do I Need Tier 2 Solar Insurance?

Your utility company wants to protect itself from liability if a customer’s solar system causes injury or death.

These insurance demands are quite controversial, and there have been several disputes throughout Florida about the need for these Tiered solar insurance demands, but unfortunately, Florida homeowners must comply.

Is PLP Insurance Expensive?

Thankfully, most PLPs are affordable at just around $14 a month which allows homeowners to enjoy considerable savings on their electric bills, even with the insurance needed for their Tier 2 system.

Central Florida Solar

Solar Bear has been a trusted guide for homeowners wishing to install solar for years and is an invaluable resource if you are looking to install a Tier 2 solar system.

Our personal approach to each customer’s unique situation, combined with an extensive understanding of the industry, make Solar Bear an ideal partner for anyone considering solar energy.

With competitive pricing and superior service, Solar Bear is the go-to provider for solar systems in Central Florida! Contact us today for a quote at (727) 471-7442!

Solar panels are an excellent investment for your home, especially in a sunny place like Tampa. After all, what’s better than saving on your monthly energy bills by using clean, free energy from the sun? As with any great investment, though, you’ll want to protect it by carrying insurance. Every homeowner switching to solar should notify their insurance company that they’re making the change. The good news is that you may even have coverage under your current homeowners policy. Read on to learn more about how solar panels can affect your insurance.

Reach Out to Your Insurance Company About Solar Panels

If you’ve made the wise decision to invest in solar panels for your home, you should reach out to your insurance company as soon as possible. They can re-rate your policy and determine whether you need additional coverage, and your agent will be able to offer you the appropriate products that will protect your investment and shield you from any liability associated with them.

Holding the right insurance policy for your solar investment isn’t just about protecting you and your finances—it’s the law. Anyone in Florida looking to switch to solar must have proof of insurance that matches the tier level of the solar panels that will be installed. For most Florida homeowners, that means holding Tier 2 insurance. This insurance policy is also called a PLP, or a Personal Liability Policy, and it must provide coverage of at least $1 million.

In some cases, homeowners won’t need to adjust or increase their coverage when switching to solar—it all depends on your insurer and your homeowners policy rules, as well as what type of system you’re installing. If your system doesn’t attach to your home’s roof—including ground-mounted or wall-mounted panels—you may need a separate policy. Your insurance agent can point you in the right direction and help you choose the coverage that works best for you and your situation.

Tier 2 Solar Insurance Protects Utility Companies

While solar panels can be installed, maintained, and used with very little risk, utility companies still want to shield themselves from liability. Since most solar systems installed today are Tier 2 systems (larger than 10 kilowatts up to 100 kilowatts), homeowners must hold a Tier 2 insurance policy.

Tier 2 insurance protects utility companies from liability if a customer’s solar system causes injury or death. All homeowners must obtain the $1 million (or higher) PLP or forfeit their source of electricity. Luckily, many PLPs only cost around $15 per month—a small price to pay compared to the savings you’ll enjoy on your monthly energy bills.

Switching to Solar Is Easier Than You Might Think

Upgrading to solar energy systems saves you money on your monthly electric bills and boosts your property value, and making the switch is easier than you might think. By reaching out to your insurance provider, you can select the policy that’s right for you and get one step closer to enjoying a clean, affordable, sustainable source of energy. Ready to get started? Reach out to the solar experts at Solar Bear Tampa today at (727) 471-7442 to schedule your consultation!

Ready to make the switch to a cleaner, more efficient future by investing in solar panels for your Florida home? Any Florida homeowner who wants to install solar panels must hold an appropriate solar insurance policy. Currently, Florida utility companies separate solar systems into distinct tiers according to system size, measured in Kilowatts (kW). Here’s an introduction to the various tier requirements for solar in Florida, and the insurance requirements that accompany them.

Introduction to Solar Tiers

While the exact terms of your utility company’s Interconnection Agreement vary depending on the company you work with, there are three tiers that are generally recognized throughout Florida:

• Tier 1: Systems less than or equal to 10 kW.
• Tier 2: Systems larger than 10kW, up to 100kW.
• Tier 3: Systems larger than 100kW.

Some homeowners can completely cover their energy needs with a Tier 1 system, but larger systems in Tier 2 are becoming increasingly common. Tier 2 systems need proof of Tier 2 insurance, which includes a Personal Liability Policy (PLP) that provides coverage of at least $1 million. You’ll also need to provide supporting documentation—including a financial statement—that outlines the value and size of your solar system and the insurance policy you hold.

What Is a PLP?

A PLP is commonly referred to as an “umbrella policy.” It provides homeowners with extra coverage that reaches beyond their typical home and auto insurance liability coverage limits. While there is no reason to believe your solar system is dangerous, a PLP covers damages if someone is injured or killed by the system.

Why Do I Need Solar Insurance?

While solar energy systems are incredibly safe, utility companies are looking to protect themselves from any risk. They require homeowners to hold a PLP to protect themselves from liability should a customer’s solar system cause injury or death. While there is some discussion and dispute throughout Florida about whether there’s even a need for tier solar insurance, for now, homeowners must comply with regulations and requirements—you must hold at least a $1 million PLP, or you forfeit your source of electricity.

How Affordable Is PLP Insurance?

Luckily, it doesn’t cost much to hold a valid PLP for Tier 2 solar insurance. Most policies are around $15 per month, and you’ll more than make up for the cost on your electricity bills. Plus, there is a big boost in your property value along with other benefits like Federal Tax Credits.

Make the Switch to Solar Today!

Still have questions about solar insurance? The solar experts at Solar Bear – Tampa are standing by to help! We’re ready to help you make the switch to solar, helping you save money on your energy bills and increase your property value in the process! Call us today at (727) 471-7442 to schedule your free estimate.

Living in the Sunshine State, solar energy is a good way to offset utility costs, and if you are considering solar panels for your home, you’ll want to understand Florida’s solar tax credits.

There are several benefits to going solar, including tax savings! Our team at Solar Bear Orlando outlines everything you need to know about Florida’s tax credits.

Going Solar in Florida

Statewide, Florida averages about 237 sunny days each year. But that isn’t the only reason why it’s an optimal space for installing solar panels; additional incentives in Florida can minimize your initial investment. Now that’s a great perk! 

Now, let’s talk about some of the best tax incentives for Florida residents who are going solar.

What Are Florida Solar Rebates and Tax Credits?

Currently, there are no statewide solar panel rebates in Florida. However, tax credits can still make the installation of solar systems in the Sunshine State more affordable.

• Sales Tax Exemption: Under Florida’s Solar and CHP Sales Tax Exemption, Floridians are exempt from paying the 6% sales tax on their solar panels.
• Net Metering: Net metering is allowed in the state of Florida and the Greater Orlando area, which means that utility customers who generate solar energy through their solar panel system can sell Renewable Energy Credits (RECs) back to the utility company. These credits can be used to pay for energy costs within the next 12 months.

It is important to note that these incentives may not last forever. In March 2022, Florida lawmakers passed a bill that would phase out net metering incentives by 2029, even though 84% of Florida residents support net metering.

What is the Solar System Sales Tax Exemption in Florida?

According to Florida statutes, all solar energy systems and components that are purchased and installed in Florida are exempt from sales tax.

This means that you will save 6% of what you would regularly pay.

What is Florida’s Property Tax Exemption?

Florida’s Property Tax Abatement for Renewable Energy Property incentive is set to run through 2037. With this incentive, Florida homeowners are 100% exempt from paying property taxes to improve their homes with solar panels.

What Federal Investment Tax Credits are Available?

Anyone around the country, not just Floridians, stands to benefit from the Federal Solar Investment Tax Credit or ITC, which was extended by Congress in August 2022.

The ITC covers the system, labor costs, energy storage devices, and more. Homeowners can enjoy a 30% credit for solar installation between 2022-2032.

The tax credit will decrease to:

• 26% for systems installed in 2033.
• 22%for systems installed in 2034.

The tax credit will expire starting in 2035 unless the United States renews it.

Am I Eligible for the Federal Solar Tax Credit?

You may be eligible for this tax credit if you meet these requirements:

• Your solar PV system was installed between January 1st, 2017, and December 31st, 2034.
• The solar system is located at a residence that you own in the United States.
• The solar system is new or being used for the first time.

Either:

• You own the solar PV system (you purchased it with cash or through financing, but you aren’t leasing the system)
• Or you purchased an interest in an off-site community solar project if the electricity is credited against it and doesn’t exceed your home’s electricity consumption.

Note: The credit can only be claimed on the original installation of the solar equipment.

How Many Years Can the Federal Solar Tax Credit Be Claimed?

You can only claim the Federal Solar Tax Credit for one year on every residential system installed. This means that you cannot get tax credits for two years or more for the same solar system.

But let’s say that you don’t owe any taxes this year but just installed a new solar energy system. You don’t have to claim the tax credit right away, you can apply it to your tax liability from the previous year or any time in the next 20 years. However, it is important to seek guidance from a licensed tax professional when seeking advice for redeeming the credit.

Florida Solar Installations

Florida’s ample sunshine is an affordable, reliable, and clean way of producing electricity that can reduce dependence on the electrical grid.

Moreover, the government provides several enticing tax credits and other incentives for those who choose to invest in solar energy. So, what are you waiting for?

Ready to harness the power of Florida’s ample sunshine? Call on our team at Solar Bear Orlando for a solar installation quote at (727) 471-7442!