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If you’ve been considering a solar panel investment, you may be wondering how much you can save in taxes. The truth is a lot! By combining local, state, and federal incentives, installing a solar system can be a lucrative purchase for Florida homeowners and businesses. Though each client’s savings will be unique, Solar Bear Tampa has compiled a list of financial incentives you can expect when going solar.

Perhaps the most well-known credit to take advantage of is the Federal Solar Investment Tax Credit (ITC). It has created clean energy and saved homeowners thousands of dollars since 2006. The current tax credit is 26% of your total project costs (ex: permits, installation, and equipment) and can be claimed as a credit on your federal tax return for the current year. It’s important to note that this incentive is only available if you own the system, not through a lease. The ITC is slated to drop again by 4% in January 2023. All the more reason to begin your solar journey now and lock in the current rate before it shifts in the new year.

Statewide, the rising popularity of solar has led to some amazing financial incentives for owners. Currently, in Florida, solar system users are exempt from paying sales tax on solar, significantly reducing the final cost of your system through the Solar and CHP Sales Tax Exemption. Solar is also exempt from property taxes for residential solar panels by the Property Tax Exclusion for Residential Renewable Energy Property exemption. This also means that county tax collectors can overlook a home’s solar system when assessing value. These statewide incentives are especially appealing to solar seekers who would be subject to sales and property taxes on any other home improvement investments.

There are also several other programs like net metering that can save additional dollars when you go solar. Our team of energy experts can assist with any financial questions while we customize a solar installation that works for you. Call Solar Bear Tampa at (727) 471-7442 or request a free estimate today.

The benefits of installing solar are far-reaching, especially in the Sunshine State! But the main question we often get from people who want to go solar is “How long will it take for my solar panel system to pay for itself?”

Many aspects factor into the payback period of a solar panel installation, including some that are easier to calculate than others.

Thankfully, Solar Bear Orlando can help break down these factors to give you a clearer picture of what your solar panel payback period might be. Keep reading to learn more!

What is the Solar Payback Period?

The solar panel payback period is the calculation of how long it will take for your solar panel system to pay for itself.

In other words, the payback period is how long it takes for your solar system to break even and recoup the cost of your initial investment. Therefore the solar payback period is also called the solar break-even point.

How is Solar Payback Calculated?

To calculate the solar payback period of your solar panels, it is important to determine the combined costs and benefits of installed solar panels. Keep in mind, several factors affect the costs and benefits of going solar.

6-10 years is the average time it takes for solar panels to pay for themselves. Keep in mind that the variables involved can change dramatically. These variables include:

The Cost of Your Solar Panel System

The initial investment in your solar panel is the largest expense. The gross cost of your solar panels is the total cost of your solar panel system before any financial incentives are included. This amount is dependent on the size of your solar panel system, the equipment used, and the labor involved. 

Financial Incentives

Numerous solar incentives are available to homeowners and businesses that are switching to solar. These include federal, state, and even local incentives in the form of rebates, tax credits, solar renewable energy credits (SRECs), and more.

Solar incentives can dramatically reduce the cost of a solar panel installation and shorten the solar panel payback period significantly.

Average Monthly Energy Usage

One of the most important steps in determining how much energy you want to offset with your solar panels, as well as the size of the solar panel system that you might need, is determining your average monthly electricity usage.

The higher your monthly energy usage is, the more savings you could gain from switching to solar, and the shorter your solar payback period will be.

Estimated Electricity Generation

Here at Solar Bear Orlando, we endeavor to design a solar panel system that matches your energy usage needs. This considers:

• How many panels can fit on your roof or property
• Which way your home faces
• Seasonal weather patterns
• Future energy demands
• And more!

From these factors, we design a solar panel system that meets your desired energy offset which in turn will impact your solar payback period.

Calculating Your Solar Payback Period

Now that you know the factors that contribute to the combined costs and benefits of installing solar panels, you are now equipped to calculate your solar panel payback period.

Follow these steps:

• Determining Combined Costs: Subtract the value of the incentives and rebates that you qualify for from the gross cost of your solar system.

• Determine Annual Benefits: Add up all the annual financial benefits you might receive, such as the electricity costs you will now avoid.

• Divide The Combined Costs by the Annual Financial Benefits: The resulting number will represent the number of years it will take to reach your solar panel payback period. After this, you will have surpassed the break-even point and will now be able to reap all the financial benefits that your solar panel system offers.

For example:

If your system costs $30,000 and you get $10,000 in incentives, your combined costs are $20,000.

You’ve calculated that your savings are $1,200 a year plus any other incentives ($1,500) = $2700 in annual benefits.

So, $20,000/$2700= a 7.4-year payback period.

Go Solar with Solar Bear

As you can see there are many variables involved in calculating the solar payback period, and even if your solar system takes seven years to reach the solar payback period, it’s worth it!

Ready to go solar in the Greater Orlando or Central Florida area? Call Solar Bear Orlando today for an energy audit and solar panel consultation; (727) 471-7442!

Summer is almost here in Florida. Have you been thinking it’s time to take advantage of those bright rays by adding a solar system to your home? Check out Solar Bear Tampa’s quick checklist to see if your home qualifies for solar.

Do you have adequate land or roof space available?

Because multiple solar panels are needed to power homes and businesses, you will need enough room for installation to qualify for solar. There are several system options available – ground mounts, solar trackers, rooftop panels, etc. Solar Bear Tampa can work with you to design the type of installation that works best for your home.

Are you the property owner?

The freedom to install a solar system falls to the homeowner or property owner of the space that will be purchasing the system. Condominium owners are also considered property owners but will need confirmation that solar systems are approved in their condominium agreement. 

Do you have minimal shading?

Solar panels require sufficient amounts of sunlight to work efficiently. If trees and other structures are not directly affecting the shade on your roof, you can move forward with the solar process. The Solar Bear team can help you decide if tree removal is necessary for

an optimal solar array.

Is your electrical system up to date?

To ensure a smooth solar process, your electrical system should be current and code compliant. If you’re unsure what updates are needed in your attic, electric panel, or wiring, an electrician can confirm this before installation. The cost of any required electrical upgrades for solar installation can be claimed as part of the federal solar tax credit.

If your home meets these foundational requirements, it’s a great time to go solar! Solar Bear Tampa can create a customized solar installation system, help with financing resources, and answer any questions you may have on local and state incentives. Get started with your free estimate today!

While you might have heard that you can forgo your electricity bill completely when you go solar in the city, it isn’t necessarily true. Yes, you read that right!

Yes, if you live off the grid and install solar, you won’t have to pay your local utility for power, but if you live in the city limits and your home is connected to the grid, it gets a little more complicated. Our team at Solar Bear Orlando explains.

The Ins and Outs of Net Metering

In Orlando, customers who install solar panels on their homes can say goodbye to most of their monthly energy bills if they have the right system on their roof with net metering.

Orlando’s net-metering program allows solar owners to buy and sell power to the grid. Currently, Florida law does not allow consumers to buy energy from a third party.

The caveat is that to be part of the net metering program, solar systems must be inspected and permitted by the city or county to ensure that it meets electrical and wind codes.

Be aware, that unless you have a lot of roof space, you aren’t going to be producing as much energy as you consume, so you may still need to pay a small electricity bill. (And by small we mean between $10-20 a month!) But the goal of a solar panel system isn’t to overproduce energy anyway, because then you’d just be giving all your excess energy to the power company.

Florida Power & Light Net Metering

To take part in net metering in Orlando, Florida Power & Light (FPL) installs a special meter on your property that captures the energy that is going to and from the grid. Excess energy from your solar panels can be sold back to Florida Power & Light and is credited on your future electric bills, thus lowering your overall energy costs significantly.

To take part in the Tier One system, (or those with an 8 kilowatt, 8,000-watt system) homeowners in Orlando will need to obtain a city or county permit, enroll in the net metering program, and sign the interconnection agreement with FPL to participate.

Of course, if your solar system is larger than an average 8-kilowatt system, you can take part in the Tier Two program which includes a $400 application fee and you must have a $1 million general liability insurance policy for your home.

FPL customers that take part in the net-metering program pay the basic service charge a month plus 9-11 cents a kilowatt for power that they use from the grid. If your solar system provides 100% of your power, you will only have to pay the service charge.

How Much Power Will My Solar System Produce?

Net metering allows customers to generate power during the day with their solar panels and draw power at night from the grid. The peak months for power generation from solar are March through June here in Florida. But during the summer, most homeowners use more energy to run the air conditioning to keep their homes cool.

Power generation depends on the direction of your solar panels, trees, and other trade near your home, and of course the weather.

There are several equations to determine how many solar panels your home will need, and the amount of power they will produce. Generally, the average U.S. household needs a 6.62-kW system to match the 8000 kWh average annual household usage, and it is typical for a solar panel to make 320 watts of electricity in ideal conditions.

If you get five hours of direct sunlight each day, you can calculate your solar panel output with this equation:

5 hours x 290 watts (an example of the wattage produced by a premium solar panel) = 1,450 watts/hr or 1.5 kWh. As a result, each solar panel will produce about 500-550 kWh each year.

Depending on how many solar panels your home has, you could be able to generate most of your own power and be able to sell some of it back to the utility company through net metering. Can you imagine if your entire energy bill was only 10-15 bucks a month!? Sounds nice to us!

Learn More> Why Florida is the Perfect Place to Switch to Solar

Pay Less for Electricity with Solar Bear

If you are ready to take control of your energy costs and take part in Orlando’s net metering program, call our team at Solar Bear Orlando! We can help you choose the right size solar system for your home so you can pay less for your home’s energy usage. Who knows? You may also be able to produce 100% of your energy and only pay the net-metering service charge each month. Awesome!

Go solar with Orlando’s #1 solar installation company! Call Solar Bear Orlando for a consultation today; (727) 471-7442!