One of the best things about investing in solar panels in sunny Florida is that they are much more affordable than homeowners might expect.

That is due to the many tax incentives available to those choosing home solar panels to reduce their carbon footprints and lower energy bills.

To encourage people to take advantage of these earth-friendly benefits and arrange a solar panel installation with solar panel companies, the government offers some impressive tax benefits to qualifying Florida homeowners, including those listed here.

1. Federal Solar Panel Tax Credits

In 2022, the Inflation Reduction Act allowed solar panel owners to claim tax credits under the Solar Investment Tax Credit, now called the Residential Clean Energy Credit by the IRS.

This incentive, which is still available in 2024, allows residential property owners investing in a new home solar panel system the ability to claim tax credits of 30% of the cost of their solar energy system during the year they first turn on the system.

These tax credits apply as a reduction of owed income tax for the claiming year, with any overages rolling over to the next tax year.

Yet homeowners thinking of taking advantage of this credit should plan their systems with an experienced solar panel company soon, as the IRS will be reducing the credit amount starting in 2023 until it has been completely phased it out by 2035 unless renewed by Congress.

2. Florida Solar Panel Tax Credits and Rebates

In addition to the Federal tax credits that new owners of solar panel systems can benefit from, the state of Florida itself offers several money-saving benefits to those who choose solar energy for their homes:

Property Tax Abatement Program - Although a solar panel installation increases the value of a home, Florida’s tax abatement program exempts 100% of that value increase, preventing an increase in property taxes as a result. In other words, Florida homeowners need not worry that their property taxes will go up just because they installed new solar panels.
Solar Sales Tax Exemption - Florida homeowners investing in home solar panels are also exempt from paying state sales tax on state-approved solar systems, plus all required components and accessories. This can net homeowners a savings of $900 or more depending on the size of their home’s system.
Florida PACE Financing - The state also offers 10 or 20-year fixed, low-interest loans to those who need them to pay for a solar panel system when other traditional lending options are unavailable. Loan payments are attached to property tax payments, meaning they transfer with a property if it is sold.

3. Local Solar Panel Incentives

Beyond the Federal and state tax and financial incentives available to Florida homeowners hiring solar panel companies to install a new system, certain localities also offer additional incentives.

Homeowners can check with their local power utility or their city’s comptroller or tax office to learn more.

Get An Affordable Solar Panel System In 2024

Before thinking a home solar panel installation is financially out of reach, Florida homeowners should first look into the many tax incentives available to them that can make their solar panel installation a reality.

Solar panels are highly encouraged in states like Florida, which is an ideal location for saving money and the earth by using solar energy.

An experienced solar panel company can advise on the type and size system needed to efficiently power a residential property and point homeowners in the right direction to benefit from any financial incentives available in 2024!