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Florida Solar Power Incentives

Residential Renewable Energy Tax Credit

Q. Are there incentives for making your home energy efficient by installing alternative energy equipment? Information updated 12/30/2022

The Inflation Reduction Act of 2022 provides federal tax credits and deductions that empower Americans to make homes and buildings more energy-efficient to help reduce energy costs while reducing demand as we transition to cleaner energy sources.

Savings for Homeowners

New federal income tax credits are available through 2032 providing up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent. Improvements such as installing heat pumps, heat pump water heaters, insulation, doors and windows, as well as electrical panel upgrades, home energy audits and more, are covered by the tax credits and can help families save money on their monthly energy bills for years to come.

In addition to the energy efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps and battery storage through 2032, stepping down to 22 percent for 2033 and 2034.

Details :

At least half of the energy generated by the solar water heater (“qualifying property”) must come from the sun.

Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.
The system must be certified by the Solar Rating and Certification Corporation (SRCC).
The water must be used in the dwelling.
The credit is not available for expenses for swimming pools or hot tubs.

How to apply: IRS Form 5695 Residential Energy Credits PDF

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Residential Renewable Energy Tax Credit - Sun-Tec Solar Energy

Q. What improvements qualify for the residential energy property credit for homeowners? (updated April 27, 2021)
A. In 2018, 2019, 2020, and 2021, an individual may claim a credit for (1) 10% of the cost of qualified energy efficiency improvements and (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during the taxable year (subject to the overall credit limit of $500).
Qualified energy efficiency improvements include the following qualifying products:

Energy-efficient exterior windows, doors and skylights
Roofs (metal and asphalt) and roof products
Insulation

Residential energy property expenditures include the following qualifying products:

Energy-efficient heating and air conditioning systems
Water heaters (natural gas, propane or oil)
Biomass stoves (qualified biomass fuel property expenditures paid or incurred in taxable years beginning after December 31, 2020, are now part of the residential energy efficient property credit for alternative energy equipment.)

Please note that qualifying property must meet the applicable standards in the law.

The residential energy property credit, which expired at the end of December 2014, was extended for two years through December 2016 by the Protecting Americans from Tax Hikes Act of 2015. The Consolidated Appropriations Act, 2018 extended the credit through December 2017. The nonbusiness energy property credit expired on December 31, 2017 but was retroactively extended for tax years 2018, 2019 and 2020 on December 20, 2019 as part of the Further Consolidated Appropriations Act. On December 27, 2020, the credit was again extended through December 31, 2021, by the Consolidated Appropriations Act, 2021. The credit had previously been extended by legislation several times. See Notice 2013-70 for more information on this credit as well as the credit for alternative energy equipment.

Solar Sales Tax Exemption

Solar energy systems have been exempt from Florida’s sales and use tax since July 1, 1997. 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 exemption was originally set to expire July 1, 2002, but it was extended for three more three years. In May 2005, the exemption was made permanent upon the enactment of H.B. 805. The Florida Solar Energy Center certifies to the Florida Department of Revenue a list of eligible equipment and hardware. Sellers of solar energy systems or components thereof are required to document exempt sales. The Florida Department of Revenue recommends that the purchaser complete this form and present it to the seller.

Solar Sales Tax Exemption - Sun-Tec Solar Energy

florida solar incentives - Sun-Tec Solar Energy

Florida Solar Rights Law

Florida law forbids ordinances, deed restrictions, covenants, or similar binding agreements from prohibiting solar equipment use. Under this law, a homeowner may not be denied permission to install a solar collector, clothesline, or other energy device based on renewable resources by any entity granted the power or right in any deed restriction, covenant or similar binding agreement to approve, forbid, control, or direct alteration of property.

While a homeowner cannot be prevented from installing a solar energy system, certain restrictions may be imposed without violating the law. However, those restrictions must be reasonable, not arbitrary, and uniformly imposed on homeowners in the subdivision. The restrictions cannot act to impair the performance of a solar system or it may be seen as “effectively” prohibiting solar.

Florida Solar Energy Research & Education Foundation