Decent net metering laws in Florida provide a system by which solar panels or other renewable energy generators are connected to the grid, allowing customers to offset the cost of the power they draw from the utility with credits they earn on their own production. Florida sets no limits on net metering capacity, so every home in a neighborhood can connect to the grid if they want to. The way it works is when your solar system produces more power than you need, the excess is captured by the grid, which you see as a credit on your electric bill.
Interconnection standards are rules for connecting solar and other electrical generation systems to the grid. Florida’s rules are pretty good. They make installation easier and usually less expensive, and net metering is more reliable too.
Performance-Based Incentives (PBI)
Florida is one of many states that offer PBIs, incentives based on the actual power that your system generates. Florida calls them Solar Power Performance Payments. Payments are based on kilowatt-hours (kWh) or BTUs generated by your system, as measured by the meter. The electricity produced is credited as Solar Renewable Energy Credits (SRECs), the value of which fluctuates by the rule of supply and demand. SRECs are a good way to help your system pay for itself.
Property Tax Exemption
Keep paying your previous property tax after you install a home solar system. Homeowners in Florida enjoy a property tax exemption. The value of their home will not be reassessed.
Sales Tax Exemption
Pay no sales tax in Florida on the purchase and installation of a solar energy system. This means a 6% savings.
Federal Tax Credit
Along with the great programs and exemptions above, Floridians also qualify for the sizable tax credit from the Federal government, of course. The Investment Tax Credit (ITC) is worth 26 percent of the system cost as of this writing, and will be deducted from your Federal income tax. The credit goes to those who buy their system (cash or loan), not to those who lease. If you lease a system, incentives go to the actual owner. That’s an excellent reason to buy rather than lease.