Solar Incentives in Florida
Residents of the Sunshine State have the opportunity to use the power of the sun to power their homes. On average, Florida residents see 237 sunny days a year, making it no surprise as to why it is called the Sunshine State. As a quick comparison, the rest of the United States that sees an average of 205 days.
So, how can residents really harness the power of the sun and get the most bang for their buck? Let’s find out!
Federal Tax Credits
One way Florida residents can save a significant amount of money when transitioning to solar energy is through federal and state tax incentives. Solar tax credits are a federal incentive that can give qualified homeowners a 26% credit that can be applied to their annual taxes. Formally known at the Investment Tax Credit (ITC), the solar tax credit can be used as a deduction by the homeowners, essentially giving them a 26% discount on their solar system. But what happens if your tax liability is less than the 26% of your solar systems cost? Luckily, this program lets you roll over the remaining balance to the next period for up to ten years.
Rising Electricity Bills
In addition to the annualized benefits of the ITC, Florida homeowners often want to know how much they can save monthly by going solar. One of the ways to calculate the potential savings is by calculating how much you are currently spending on electricity every single month.
For example, “the average annual electricity use required for a U.S. household is 10,972 kilowatt-hours (kWh). Multiply that by the national average electricity rate as of April 2020 ($0.1328 per kWh) and you’ll find that the typical American family is spending just over $1,450 a year on electricity alone.” In the state of Florida, the average electricity rate is $0.1278 per kWh.
To break down the above, electricity is measured using kilowatts (kWh), and each kWh costs money. homeowners have the opportunity to calculate their electricity before going solar. This can give you an idea of what you are currently spending versus what you could be savings when you make the switch.
How to Apply for the ITC
Now that you have the ITC and utility knowledge in your back pocket, how do you apply for the 26% solar tax credit? After you purchase your system, you will need to fill out a 5695 tax form. This form is for the residential energy efficient property credit, also known as the nonbusiness energy property credit. If your still unsure about the logistics, one of our dedicated Momentum Solar specialist would be happy to walk you through the basics of solar incentives in Florida.
Working with Momentum Solar means that you can sit back and relax while we take care of the entire process. Our team works tirelessly from start to finish to provide each homeowner with first-class service and best-in-class products. Each home receives custom designed, engineered, installed and activation of every system making the transition to solar effortless. We help thousands of Florida homeowners go solar every year and we can certainly guide you and your families
For more information, please give us a call at 1-888-MOMENTUM.
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