Residential Solar Power Incentives
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• SARASOTA COUNTY SOLAR ENERGY INCENTIVE PROGRAM
Effective August 6, 2010 Sarasota County is launching an Incentive Program for the installation of solar energy systems. Under this county Rebate program any resident who purchases and installs a new Solar Water Heating system, from August 6, 2010 until the funds are exhausted, is eligible for the rebate.
*Solar Water Heater Incentive Program
-$750.00 rebate per residence
• 30% FEDERAL TAX CREDIT
Under this legislation, homeowners are entitled to receive a federal tax credit worth 30% for a qualified solar energy system.
A homeowner who installs a solar energy system can qualify for a federal tax credit worth 30% of the installed cost. If for example, you have a $7,000 system installed, your credit would be $2,100, a $5,000 installation would be $1,500 and a $6,000 installation would be $1,800.
A tax credit offers significantly more financial savings to buyers than a tax deduction. A tax deduction is subtracted from the income before tax liability is computed. The tax credit is subtracted directly from the total tax liability. This means a tax credit offers more savings to the consumer than the tax deduction. For a comparison, a tax credit of $1,000 for a taxpayer in the 28% tax bracket is the equivalent of a tax deduction of $3,751.
*While we have made great efforts to describe these tax incentives accurately, we cannot provide tax advice and suggest you contact a tax professional with any questions specific to your situation.
NOTE: Congress has extended the federal Solar Energy Tax Credit program through the end of 2016.
• NET METERING
Net metering allows you to draw on utility power when it is needed and to sell power to the utility company when your solar electric system produces a surplus. Net metering legislation states that the utility company must credit you at retail rates (the same rate they would have charged you). Therefore, you will be credited for power fed back to the utility company from your solar power / photovoltaic system at the same kilowatt hour rate at the same kilowatt rate that the power company charges you.
Read the Public Service Commission's News Release for Net Metering.
The following links are a reference for investor-owned utilities Net Metering Programs & Fees.
- Florida Power & Light (click “Learn More” under each the three customer Tiers for documents)
- Florida Public Utilities Company (PDF)
- Gulf Power
- Progress Energy
- Tampa Electric
- Summary from FLASEIA (Word)
- Florida Department of Revenue: (PDF) A Technical Assistance Advisement from the Florida Department of Revenue’s Tax Law specialist
• PROPERTY EXEMPTION / SOLAR ENERGY SYSTEMS
The solar energy system exemption allows residential and commercial property owners to apply for and receive a property tax exemption. This means that the cost of a solar energy system will not increase the appraised value of a home or business for property tax purposes.
• SOLAR ENERGY SYSTEM SALES TAX EXEMPTION
Florida Law exempts solar energy systems and all components of such systems from sales and use tax. The term “solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity. This includes solar power / photovoltaic systems, solar water heaters, solar pool heaters and solar lighting.
