The Solar Tax Credit In Fort Lauderdale
Solar power is quickly becoming the preferred energy source for eco-conscious homeowners in Fort Lauderdale Florida.
Worried about their carbon footprint and want to do more to combat climate change.
Luckily, solar power is also quickly becoming one of the most affordable energy options too.
One of the major reasons for the increased affordability is the Solar Tax Credit in Fort Lauderdale.
As governments look for ways to combat climate change, promoting clean, renewable energy is an increasingly common approach.
Besides researching and developing the technology themselves, Florida governments are also empowering Fort Lauderdale citizens with the opportunity to do their part.
A lifetime, never-ending monthly financial obligation with no pay off options.
Subject to guaranteed rate increases every single year.
No control over cost and consumption.
No added value to your home.
Dependent on the grid.
Funding a monopolized industry.
Contributing to the usage of nonenvironmentally friendly energy sources such as coal, gas, fossil fuels etc…
Investment solar Tax Credit
With the Investment Solar Tax Credit (ITC), rather than the government just building new power plants, Fort Lauderdale homeowners can become the energy producers themselves.
Not only is this an extremely effective tool for combating climate change, but it’s also a great way for Florida homeowners to lower their utility bills.
What is the Investment Tax Credit?
Enacted in 2006, the ITC is a government initiative designed to grow the Florida solar industry and has been a resounding success with over a 10,000% growth in the solar industry.
The program works by providing Fort lauderdale homeowners with a federal tax credit worth 26% of the total cost of the solar installation (after any rebates).
Note that it’s a solr tax credit and not a rebate, thus you’ll receive a dollar-for-dollar reduction in your tax liability.
How Does the Federal Tax Credit Work?
Solar tax credit
Solar energy is widely advocated by the federal government. As one of the most effective tools against climate change, the federal government—as well as some state and local governments—offer tax credits for homeowners who install solar in their homes.
The Investment Tax Credit (ITC) is equal to 26% of the total cost of your solar installation—minus any cash rebates.
FUN FACT: Some states, like Florida and Arizona, also exempt solar installations from sales tax!
ZERO MONEY OUT OF POCKET
INCREASED PROPERTY VALUE
OPTION TO PAY OFF EARLY
NO PRE-PAYMENT PENALTIES
NOT SUBJECT TO UTILITY RATE INCREASES
TRANSFERABILITY OF MONTHLY OBLIGATION AT POINT OF SALE
Before you file for the ITC
But before you file for the ITC, there’s an important caveat you should be aware of: You must own the solar system to qualify.
That means, Fort Lauderdale homeowners who lease their solar system through a Power Purchase Agreement (PPA) don’t qualify for the ITC because they don’t own the system themselves.
The company they lease the system from is entitled to the ITC.
With a solar loan, however, you’re entitled to the ITC because you own the system.
Certain state and local florida governments also offer additional tax credits and benefits.
Fort Lauderdale, for example, offers both a sales tax exemption as well as a property tax exemption to make fort lauderdale solar power an even more attractive proposition.
Solar Permit & Installation Roadmap:
- STEP 1: Sign the Solar Agreement – Review and sign the agreement paperwork to get the process started.
- STEP 2: Finalize Solar System Design – We will perform a site visit to ensure that all of the equipment and solar panels can be installed and start the permitting process.
- STEP 3: Solar System Installation – We will schedule an installation date once the building department and the utility grant us permission to install the solar system.
- STEP 4: Inspection – We will request for inspection from the city. Once that solar installation complete the utility will install a net meter and give you permission to turn on your system.
- STEP 5: System Operational – Flip the switch to turn your solar system on and start generating clean renewable energy on your roof.
Battery Backup + Solar:
More and more homeowners shopping for solar are also opting to include a battery storage device in addition to their existing solar system. Although going solar does not require a battery, it will provide power during an outage.
In fact, the only way to have power during an outage is with the use of a battery backup system. Due to Anti-Islanding, a safety measure located in the solar inverter, which prompts the inverter to shut down when it detects an outage. It is meant to protect workers that are repairing the grid after a storm or a natural disaster for example. Your solar system is required to shut off to prevent such back feed of energy from your solar system back to the grid.
By having an independent power source such as a battery, you will not be subject to anti-islanding and you will be able to benefit from continuous power during an outage.
How to Claim your Solar Tax Credit?
Florida and Fort Lauderdale tax credits can vary, but with federal tax credits, namely the ITC, you simply fill out Form 5695 for Residential Fort Lauderdale Energy Credits when filing your taxes.
Don’t worry if you didn’t earn enough in the same year of your Fort Lauderdale solar installation to use the entire Florida tax credit.
Even if you can’t use all of the 26% tax credit in a single year, you can simply use the remaining tax credit in subsequent years.
Don’t Hesitate to Install Solar in Fort Lauderdale
While solar technology is changing rapidly, if you want the most cost effective solar system in Fort Lauderdale Florida, you should take advantage of the ITC and start building your solar system today.
Under the current legislation, each year the Fort Lauderdale tax credit becomes less and less. Currently, in 2020, Fort Lauderdale homeowners can qualify for a 26% tax credit. In 2021, that drops to 22%. In 2022, it’s removed completely, although new legislation could extend the ITC further into the future.