Florida solar 101: must read before you buy solar panels

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Solar equipment constituting a PV system – solar panels, inverters, charge controllers, batteries and addons – is free from the 6% sales and use tax for Florida residents. Note that all the components, especially accessories, cannot be standalone: they must play an integral and vital role in the solar PV system as a whole. To qualify for the Florida solar tax exemption, you need to complete this form.

A solar PV system installed in a home increases its value by about 4%, which would mean higher property taxes in other states, but not in Florida. According to the Florida Constitution, 100% of the real property value increase that occurs as a result of a solar PV system installation should be ignored.

In 2010 Florida passed Property Assessed Clean Energy (PACE) legislation, according to which some localities can offer solar loans to homeowners at special interest rates. Currently, the following programs are in force: AllianceNRG program, Leon County Commercial PACE program, RenewPACE, and Ygrene Works, which offer both commercial and residential PACE financing. There is also Solar Energy Loan Fund (SELF) nonprofit organization, which provides unsecured personal loans for energy-efficient upgrades throughout Florida at 7.0-7.5% interest rate for up to 10 years.

Florida Net Metering allows residential solar owners to put the excess electricity onto the utility grid instead of storing it with batteries. When you sell your solar power to the grid, you receive an electricity bill reduction according to the rate you currently pay for power. For every kWh you contribute to the grid, you get one kWh off of your next utility bill. Top utility net metering programs in Florida:

• Duke Energy
• Florida Power & Light (FPL)

This incentive prevents your solar panels from overshadowing. Let’s say your neighbor grows some trees which cast a shadow over your PV installation, reducing its power output. In Florida you can get a solar easement from your neighbor to ensure they cut or trim their trees once they grow over a certain height. All solar easements are voluntary and tied to the property: if your neighbor sells their home, the original easement agreement will still be in force.

It is legal to install solar panels on your house. Florida law states that nobody, including homeowner associations, can prohibit it. If your HOA imposes any restrictions, they must be reasonable, not arbitrary, and applied for all association members. Those restrictions must not affect the performance or increase the cost of a solar system.

Something you should remember:

• You don't need to get any approval from your HOA to install a solar system in Florida.
• HOAs are legally allowed to instruct you where and how to install PV modules. For example, they can direct your system to be installed on the southwest side of your roof instead of the southeast side.
• Your homeowner association might also come to inspect the installation process to make sure you make the most of the solar panels.
• There may be height restrictions in some places in Florida that forbid solar system installation. For example, tall buildings near airports will have different installation laws when it comes to using solar panels.
• Any requirements forcing you to hide the system from view will generally violate the law.

Florida is one of the most hurricane-prone states in the US. Severe storms bring damage and devastation, cutting people off the utility grid for days. Since solar panels are able to withstand most hurricanes, the Department of Agriculture and Consumer Services included in the Florida Energy Efficiency Code for Building Construction specific provisions to facilitate the use of cost-effective solar energy technologies as emergency remedial and preventive measures for providing electric power, street lighting, and water heating service in the event of electric power outages.