Florida solar incentives in 2023 can help you save thousands of dollars on your installation and ongoing electricity costs. From federal tax credits and tax exemptions to local incentives and net metering, getting solar panels has never been easier.
Florida is ranked as the 3rd best state for solar energy in the U.S., with 5.3% of the state’s energy coming from the sun (enough to power 1,157,337 homes). With over 237 days of sun, Florida’s solar incentives in 2023 are designed to encourage residents to take advantage of the clean energy opportunities we have.
Note that some incentives vary with location. This blog is not tax advice, please always analyze your personal circumstances or consult a tax professional.
What Florida Solar Incentives Are Available in 2023?
Federal Solar Tax Credits
Federal Solar Tax Credits (ITC) in 2023 allow you to reduce your solar installation costs by 30%!- This country-wide incentive provides a reduction on your federal income tax bill at the value of 30% of your solar panel costs.
- For example, $10,000 Federal Tax Credits = A $10,000 reduction on your income tax bill.
- There is no maximum amount you can claim for.
- It can be rolled over to next year!
Federal Solar Tax Credit Criteria:
- To qualify for a retroactive 30% tax credit, you must have your solar panel system installed in 2022.
- The solar energy system must be used by someone paying federal income taxes.
- Your solar panel system must be at your primary or secondary residence.
- You must own a solar PV system.
- The solar power system must be new, or be in service for the first time.
- All electrical and fire code requirements must be met.
Federal Solar Tax Credits Can Apply To:
- Solar Installation Fees
- Solar Equipment
- Solar PV and Solar cells
- Permitting Service Costs
- Permit Fees
- Shipping Costs
- Engineer Fees
- Electrician Fees
- Solar batteries, powered by solar panels
- Energy storage systems, powered by solar panels.
Tax Exemptions in Florida in 2023
Sales Tax Exemption
Florida’s Solar and CHP Sales Tax Exemption allows Florida residents to be exempt from paying the 6% sales tax on their new solar panels.Property Tax Exemption
In addition to the sales tax exemption, you can also potentially increase your home’s value with the 100% property tax exemption. This means that you won’t pay for any additional property taxes caused by solar panels increasing the value of your home.Net Metering to Make Money from Your Solar Energy Production
Net metering is a great Florida solar incentive that allows solar system owners to sell their excess energy back to the grid. In exchange, you earn credit towards your electricity bill.How Net Metering Works in Florida
- Excess solar electricity is sent to the grid to power other homes and businesses in your area.
- As you’re offsetting the utility company’s electricity demands, they compensate you in bill credits.
- Your electricity provider charges you for the net usage (the difference between the electricity you shared, and the electricity you used from the grid).
Who Offers Net Metering?
In Florida, all four major utility companies and other electric cooperatives offer 1:1 net metering (the credit has the same value as the retail rate of electricity that utility charges).- Florida Power & Light (FPL)
- Duke Energy
- Tampa Electric (TECO)
- Gulf Power
Local Florida Utility Rebates
There are also municipal utilities and local electric cooperatives that provide Florida solar rebate programs. You can view a list of the currently available ones here.Notable Local Utility Rebates Include:
- Lakeland electricity customers can receive a refund of up to $4,000 on battery storage systems.
- PACE Financing in some areas allows homeowners to borrow money to pay for solar energy improvements.
- FHA Energy Efficient Mortgages allow homeowners to finance solar improvements to their home, or to increase their “buying power with the purchase of a new energy efficient home”.
- Boynton Beach Energy Edge rebate program offers a maximum rebate of $1,500 to install solar panels.
- Florida Keys Electric Cooperative Solar Loan Program offers loans of up to $35,000 to install solar panels, which must be repaid within 10 years.
- Dunedin Solar Energy Rebate Grant Program allows eligible residents to get paid $0.25 per watt of solar energy generated, up to $2,500.
- Orlando residents could be eligible for a $2,000 rebate for having solar installed.
Solar Loans in Florida
Another great Florida solar incentive in 2023 is to use a solar loan. As a subcategory of home improvement loans, they can allow you to invest in solar panels without paying a dollar out of pocket! There are various payment structures, rates and terms. Best of all, they result in immediate energy cost savings! So from day one of using your solar panels, you’ll be saving money that can go towards your monthly Tampa solar loan repayment.- Own your solar panels on day one of installation.
- Benefit from immediate savings on your utility bill.
- No money out of pocket.
- NO need for a large cash sum.
- Qualify for 30% savings via the federal tax credits offered in 2022-23.
