You can now reduce the costs of your Florida solar installation by 40%! This is thanks to an extra Solar Tax Credit offering called the ‘Domestic Content Adder’. Here’s how you can take advantage of it from it:
Florida Power Services Designs Qualify!
We’re delighted to say that Florida Power Services ‘The Solar Power Company’ offers system designs that qualify for this extra 10%! You could save a total of 40% on your solar installation! You could save thousands of dollars! Please ask about how to qualify, during your initial phone call.Get Started NOW To Meet The Deadline
To qualify for the deadline that reduces your next IRS income tax bill, we urge you to get started as soon as possible. In recent years we’ve had some customers regret their decision not to act fast, as they missed out on BIG savings.What Is the Solar Domestic Content Adder?
The Solar Domestic Content Adder is an incentive that new solar owners can use to reduce their installation costs if their PV system includes:- Domestically produced hardware, or;
- Imported products that meet the quality requirements
How Can I Qualify for the Solar Domestic Content Adder?
To qualify for the Solar Domestic Content adder, your Florida solar installation must meet one of the two following requirements:Option A) Domestically Produced Hardware;
- 100% iron and steel used must be manufactured in the United States.
- Manufactured goods must be initially 40% US manufactured, including:
- Solar Panels
- Inverters
- Electrical Gear
Option B) Imported Products
- Imported products can be used if U.S. products are not of satisfactory quality or not in stock, OR;
- Imported products can be used if the U.S. products would increase the project cost by more than 25%.
Are Solar Batteries Eligible for the Solar Tax Credit?
- Yes, but they must be powered by solar panels.
- Residential solar owners must have 100% of the storage charge provided by solar power.
- Commercial solar owners must have 75% of the storage charge provided by solar power.
Where Do File for Solar Tax Credits?
- It will be a line time on IRS Form 5695 (which comes out around February every year).
- Your installation must meet all the requirements listed in this blog.
- Please read the IRS instructions on filling out the IRS form here.
Federal Tax Credits Explained
- Federal Solar Tax Credits (ITC) are an incentive provided by the U.S. Government to allow solar installers to reduce their installation costs by a %.
- The calculated cost is then deducted from your income tax bill for the following year (it rolls over if necessary too).
- As of 2023, the Federal Solar Tax Credit is 30% of the value of your solar panel costs.
- BUT, thanks to the Domestic Content Adder (explained in this blog), you can increase your savings to 40%!
Other Federal Tax Credit Requirements
- The installation must have started after 2021.
- The solar power system must be used by someone paying U.S. income taxes.
- Your solar panel system must be at your primary or secondary residence.
- You must own the 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.
- 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.
How Florida Power Services’ Systems Qualify:
As previously mentioned, our components and materials qualify for the 10% Solar Tax Credit adder! We use both U.S. steel and iron and imported components that all meet the necessary product quality requirements.| Type of Product | Qualification Option | Qualifies? |
| Ironridge Racking | Domestically Manufactured | ✔️ |
| Electrical Components | Domestically Manufactured | ✔️ |
| Stainless Hardware | Domestically Manufactured | ✔️ |
| Wire | Domestically Manufactured | ✔️ |
| Q Cells Solar Panels | Meets the Satisfactory Quality | ✔️ |
| Canadian Solar Panels | Meets the Satisfactory Quality | ✔️ |
| Silfab Solar Panels | Meets the Satisfactory Quality | ✔️ |
| Enphase Micro Inverters | Meets the Satisfactory Quality | ✔️ |
What Is The Domestic Content Adder For?
- The Domestic Content Solar Tax Credit incentive is one of many incentives included in The Inflation Reduction Act of 2022 (IRA) and the federal clean energy bill.
- The program is designed to increase solar installations in the U.S. for a cleaner future and to promote the growth of the US solar energy industry.
- It also aims to reduce the dependency on external imports from countries such as China.
Summary:
- Solar Tax Credits are applied to reduce your federal income tax bill, by the cost of a % of your solar installation.
- Domestic Content Adder is worth 10% of the cost of your solar installation.
- The products used must meet the federal requirements to qualify.
- Florida Power Services offers solar designs that qualify.
- You must act fast to avoid missing out.
