The monetary benefits are as lucrative as the environmental benefits of going solar in 2021. In the state of Florida, especially in Miami, Palm Beach, and Broward, where there is abundant sunlight, going solar means, you are investing in a beneficial tax-reducing, profit-inducing plan. Let’s discuss how.
- The Swanson Effect:
The cost of solar panels is exponentially dropping, almost 20% every decade in Florida. The cost of solar cells has dropped from $77 in 1977 to $0.36 in 2014, after which they stopped keeping track due to the sheer futility of it. Assuming the prices are still going down, the cost of installing solar panels is much lower in Florida now than 10 years back and is the best time to jump the gun.
- Loan Purchase Benefits:
Not everyone is capable to come up with $15000 in cash for the solar roofs. Yes, $15000 is what it takes to get 6W solar panels in Florida. With a PACE or solar loan, you can still go solar without investing any money upfront. The perks are still there though:
– Energy saving
– Federal tax credit
– Low monthly payment
– Annual saving or zeroing of electricity bill.
- Cash Purchase Benefits:
If you have cash reserves and considering going solar with that, it can hurt a bit at first but will ease up with increasing electricity costs and up to 30% federal tax cut soon. By taking the benefits of the Florida Net Metering, your solar panels are expected to pay their value back altogether in 6-8 years.
With a return double than loan purchases of solar panels in Florida, it’s better to go with the cash reserve if you can. Your resolution of going solar is looking quite reasonable right now as a Florida resident.
- Exemption of Property and Sales tax:
Solar incentives from the government currently available in Florida are:
- Solar tax credit
- Florida Net Metering
- PACE Program Florida
The solar tax credit is a federal tax credit that allows Florida homeowners to claim up to 26% of their solar system’s cost as a deduction from income tax. This means the government pays you back 26% of the investment as fast as you can claim. You can even roll over the credits up to 10 years if your liability is less than the 26% mentioned. Solar systems in Florida are exempted from property and sales tax too.
Florida Net Metering is an incentive program that allows homeowners to “sell” the excess powers generated from the solar panel to the main grid in return for a discount on the electricity bills. The payback is as high as 100%, which means if you export 1kWh to the grid, that is 1kWh off of your bill.
The PACE program offers residents of Florida to get a property loan for installing solar panels or any other energy-efficient upgrades to their house. You are to pay the loan back with increased property taxes but also have an option to surrender the upgrades to the authorities in case loan payments fail or you don’t feel like being solar at all.