Financial Incentives for Solar Panel Systems
In today’s world, many homeowners are seeking ways to save money on their energy bills and help the environment. From Energy Star appliances to simple energy saving measures, we are on the lookout for ways to save. Many homebuyers are also attracted to energy-saving features that are already in place in a home. Did you know that Florida is ranked as the third best geographic location for solar energy? Yet, when it comes to homes with solar systems, we are ranked 17th in the nation. Much of this is due to current state regulations, which prohibit third-party owned systems. This leaves leasing solar panels and power purchase agreements out as options for homeowners to invest in. Often leasing or power purchase agreements help homeowners better afford this type of upgrade. But there are ways you can make installing a home solar system more affordable.
There are financial incentives offered in a variety of programs, which can put money back in your pocket and help you achieve lower energy bills with a solar panel system. All utilities governed by the state utilities commission, offer net metering by law. Customers with solar panel systems get credit for any net excess generation of power within a month. If there is more power generated than used within a year, the utility must pay the consumer. Essentially you can get back the difference between what is generated and what power you actually use. Excess power from these systems is fed back into the power grid for general use. The payment consumers can get for providing power back to the utility company is typically calculated at the “avoided cost rate” which is less than the standard retail rate. But with solar panel systems, creating more power than is needed is a common occurrence, so a credit back is probable.
In addition to this credit possibility, there are other solar rebate programs that you can take advantage of. Anyone who purchases a solar panel system is given an exemption for the sales tax but you must complete an application for the benefit. All components of a system are covered under this incentive. All the qualified parts of a solar panel system and a link to the application form for the tax exemption can be found through the Clean Energy Authority.
The Orlando Utilities Commission has some of its own incentives for solar energy users. In addition to the net metering payments, which actually credits excess power generated at the retail price, it also offers a $1,000 rebate for installing a solar hot water system. If you finance the system through the Residential Solar Loan Program, you can get up to an additional $500 in rebate funds. Through this program, qualified residents can get a low-interest loan of up to $7,500 for a solar water thermal system or $20,000 for a solar panel system. Payments on these loans are added in at a fixed rate to your utility bill.
With programs such as these in place, adding a solar panel or heating system to your home is made more feasible. If you are looking for ways to upgrade your home and save some money, this is one area I would recommend looking into further. I am proud to be a part of this amazing community, and I am proud to be able to make the real estate process move smoothly for my clients. I am here to help with all of your real estate needs. If you’re looking for a warm and engaging professional to help you with the purchase or sale of your home, contact me today at 407-234-5313 or by email: Jeff@JeffRoyle.com.