The Secret Solar Hack to Save You an Extra 10%

There is a widely unknown secret to buying solar in Florida, that could save you thousands of dollars! Here it is: You can save an extra 10% on the cost of your Florida solar installation, via the Domestic Solar Tax Credit Adder. Amazing, right? It’s barely known. But it’s a legitimate hack that is saving our customers thousands of dollars! Let’s explain how it works in more detail:

How the 10% Domestic Solar Tax Credit Adder Works

You may be familiar with the 30% federal tax credit. That system allows all solar installers in the U.S. to receive a reduction on their income tax bill at 30% of the cost of their solar installation. But here’s the secret: You can get an extra 10% added to your Federal Tax Credits, making it 40% in total! How? By Purchasing domestically produced hardware, OR by using imported products that meet the quality requirements! [1] To qualify for extra 10% solar tax credit, your installation must meet the following requirements:

• 100% of steel and iron used must be manufactured in the United States.
• Manufactured goods must be initially 40% US manufactured, including:
  • Solar Panels
  • Inverters
  • Electrical Gear
• OR, you can use imported products if the options in the US are not of satisfactory quality or are not produced in sufficient quality.
• OR, you can use imported items if the U.S. options would increase the project cost by greater than 25%.
• Applies to all project sizes.

Source [1]

Do Florida Power Services’ Installation Qualify for the 10% Adder?

Florida Power Services ‘The Solar Power Company’ can install components and materials that qualify for the 10% tax credit adder, so you hit a total of 40% of savings! Locally operated in Florida, we use a combination of U.S. steel and iron and imported components that meet the necessary quality requirements to qualify for the 10%. Be sure to ask about it during your consultations. Since 2007 we have been using top-quality equipment in our designs: • 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) ✔️ • Enphase Micro Inverters (Meets the Satisfactory Quality) ✔️

Why Does The Domestic Content Tax Credit Incentive Exist?

The Domestic Content solar tax credit incentive is one of several incentives included as part of the federal clean energy bill and The Inflation Reduction Act of 2022 (IRA). The incentives are designed to increase the amount of solar in the U.S. for a cleaner future and to drive the growth of the US solar energy industry. The Domestic Content tax credit incentive also aims at reducing the dependency on external imports from countries such as China.

Solar Federal Tax Credits Explained:

Federal Solar Tax Credits (ITC) allow you to reduce your solar installation costs by potentially thousands of dollars.

• When qualified, you receive 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.
• You can add an extra 10% of saving via the domestic adder, explained in this blog.
• There is no maximum amount you can claim for.
• It can be rolled over to next year!

This incentive was previously set to expire in 2024, but it was extended in August 2022 until 2032 at a fixed rate of 30%. Read related: Florida Solar Tax Credits Guide

How to Qualify For Solar Federal Tax Credits?

• Your solar panel system must have been installed 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.
• For the 10% domestic content adder, your installation must use:
  • 100% US iron and steel.
  • Manufactured goods must be 40% initially produced in the US;
  • Exceptions are made for items that are not at satisfactory quality in the US. They may be imported from outside the U.S.
  • Items that would increase the project cost by greater than 25% may also be sourced from outside the U.S.

Are Enphase Solar Products U.S. Made?

U.S.-based Enphase Energy announced plans last year to expand production into the US market. At the time of writing, they are on the verge of opening four to six manufacturing lines in the United States. Its solar inverters will soon be U.S. made: “Starting in the second quarter of 2023, we are adding manufacturing capacity in the United States due to the global demand for our products as well as the incentives related to the Inflation Reduction Act (IRA), which will bring our total global quarterly capacity to more than 10.0 million microinverters as we exit 2023.” – Enphase Florida Power Services ‘The Solar Power Company’ uses Enphase inverters on its solar installations.

Are Qcells Solar Products U.S.A. Made?

Qcells is owned by a Solar Korean Company (Hanwha) but makes many of its solar panels in the U.S. In early 2023, Qcells invested in the largest clean energy manufacturing project in American history which will create 2,500 jobs in Georgia. Florida Power Services ‘The Solar Power Company’ uses Qcells solar panels on its solar installations. Qcells offer Black Cells, White Back Sheet, and Silver Frame solar panels.

Install Solar Panels in Florida Today

If you want to install solar panels in Tampa, or its surrounding areas then look no further! We can help you get a solar installation that meets the requirements for federal tax credit savings. Florida Power Services ‘The Solar Power Company’ is a highly rated, fully certified local solar company that can help you install a dream, rooftop solar system. We also provide financing and plans to give you the best return on investment. We welcome you to contact us today or call (727) 667-9955 to install solar panels in St. Petersburg. The quote you get will be kept!