Solar incentives in Florida
What type of solar incentives are available?
Several types of incentives can help you go solar.
Solar Renewable Energy Credits (SRECs) are a solar incentive designed to encourage solar adoption. SRECs are created when a state passes a renewable portfolio standard (RPS). At this time, Florida has no RPS and no solar electricity targets. As a result, Florida does not currently have a viable SREC market.
Florida passed Property Assessed Clean Energy (PACE) legislation in 2010. Currently, five programs operate across the state. Many of these programs offer opportunities for both commercial and residential property owners to qualify for PACE financing. Active programs include:
- Alliance NRG – This PACE program offers both commercial and residential PACE financing. A partner on this project is the Florida PACE Funding Agency. This PACE program is available to any Florida county and has already been approved in more than 20 Florida counties.
- Leon County Commercial PACE program – Leon County established the Leon County Energy Improvement District in 2012. Since then, the county has approved the HERO PACE program so both residential and commercial property owners can take advantage of PACE financing.
- RenewPACE – This program is run by Renew Financial and offers programs to both commercial and residential upgrades.
- Solar Energy Loan Fund (SELF) – SELF is a 501(c)3 nonprofit administering PACE financing programs to Floridians within St. Lucie County. Please see SELF’s handbook on PACE in order to learn more about which projects qualify for this type of financing.
- Ygrene Works – This PACE fund supports both commercial and residential PACE financing.
No sales tax on solar
Since July 1997, solar energy systems have been exempt from Florida’s sales and use tax. In May 2005, the exemption was made permanent upon the enactment of H.B. 805. This exemption applies to solar hot water, solar space heaters, photovoltaic systems, solar pool heating and all associated components. The Florida Solar Energy Center periodically revises the list of equipment and requisite hardware considered to be a solar energy system.
Florida provides a 100 percent property tax exemption for residential renewable energy property and an 80 percent property tax abatement for non-residential renewable energy property. Eligible renewable energy property includes solar photovoltaic (PV) systems, solar PV plus storage systems, wind energy systems, solar water heaters, and geothermal heat pumps installed on or after January 1, 2013.