Understanding the Benefits Associated With Transitioning to Alternative Energy Options for FL Homeowners
Solar Energy Is More Affordable Than Ever
When solar energy panels first made their debut in the marketplace, they were expensive and unwieldy. Over time, however, costs associated with traditional photovoltaic (PV) systems and other green tech solutions have come down. As more and more homeowners in Pace, Florida, start to take a serious look at going solar, we thought it’d be a good idea to help you understand all of the reasons that you might want to make the switch.
What Makes Solar Such A Good Investment?
If you own a home in Pace, then you’ve probably heard about the various government tax incentives that can help your solar panels pay for themselves. These tax incentives fall into three main categories:
- Local property tax exemptions
- Federal tax credits for solar homeowners
- State sales tax exemptions on solar panels
In short, the government is doing everything it can to help everybody move away from traditional electricity sources and start going green. Why would they do this? Well, there are a few pretty big reasons.
As the United States becomes more reliant on sustainable power sources, we become more energy independent. This stabilizes our economy, provides more jobs here at home, and makes us less vulnerable to supply fluctuations abroad. Thus, it’s in the government’s best interest to do everything possible to encourage homeowners to switch to solar today.
How Your Solar Panels Can Pay For Themselves With Net Metering
With Florida’s strong sunlight, your solar panels will often produce more energy than your home requires. Normally, this excess energy would either go into storage or go to waste. With net metering programs, however, local utility companies will actually buy back any extra energy that your panels produce and pay you in the form of an account credit.
For example, Escambia River Electric Cooperative has an agreement where they buy back your extra electricity for more than three cents per kilowatt. Gulf Power, one of Florida’s largest utility companies, has a different net metering agreement where they calculate your account credit at the end of each calendar year. Regardless of which net metering agreement you pick, you’re going to get a healthy return on your solar panel investment.
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The Compass Solar Difference
As one of Florida’s most popular solar installers, we have helped commercial and residential clients alike make the transition to a greener future. We’re also proud to count federal, state, and local government agencies among our list of satisfied clients.
Although everybody on our team is more than comfortable installing any type of solar panel that you need, we also specialize in custom design work and maintenance training.
With more than 45 years of combined experience in the alternative energy industry, our team is able to provide:
- Ground-mounted systems
- Solar canopies
- Installation services for commercial buildings
- Solar water heating solutions
- Solar pool heating solutions
- Residential photovoltaic systems with backup batteries included
More Information On The Solar Federal Tax Credit
To help make solar panels for individual homeowners even less expensive, the government offers a federal tax credit for up to 26% of your system’s total costs. The credit applies to PV systems installed between January 1, 2006, and the last day of December in 2021. More importantly, this tax credit is different than a standard tax deduction.
Most tax reduction programs only allow you to reduce the amount of federal income that you are taxed on, but you can think of this credit as a direct claim against the total amount of income tax that you owe. Better yet, there is no limit on how much you can reduce your taxes with this program. As long as the system was installed at your primary or secondary residence, you can claim up to 26% of its costs as a direct write-off.
Using Florida's State Tax Exemptions To Reduce The Cost Of Solar
On top of the federal tax credit program mentioned above, Florida’s state government offers a property tax exemption on new solar panels. Installing a solar power system can give a massive boost to your home’s market value, but the government has agreed not to levy extra taxes for the difference. By the time you factor in the property tax savings, the cost benefits of net metering, and the increased value of your home, it should be clear that solar panels are more of an investment than an expense.
However, things get even better when you add Florida’s state sales tax exemption too. Normally, the sales tax on a typical photovoltaic system would run in the hundreds or thousands of dollars. Whether you want to put these tax savings back into your PV system for an upgrade or invest the money somewhere else is completely up to you.
The Top Three Reasons To Go Solar Today
In summary, here are the top three reasons to start powering your business or your home with solar power today.
1. Drastically Reduced Electricity Bills
As you’ve probably noticed, residential and commercial electricity costs tend to fluctuate wildly when you’re on the traditional power grid. When you rely on the sun for the majority of your electricity needs, you’re almost completely immune from demand shocks and price increases. You may even find that your solar panels eliminate your electricity bill completely.
2. The Ability To Offset A Significant Portion Of Your Federal And State Tax Bills
Both the federal government and the Florida state government are offering some very strong tax incentives right now, and there are probably more coming in the future. The federal tax credit program does run out in 2022, but it’s likely that Congress will provide a replacement when it expires.
3. A Stronger United States Economy
America has energy independence for the first time in its history, but we’re all going to have to do our part to keep it that way. Relying on solar power makes us less dependent on our international rivals, and it frees us up to focus on our domestic infrastructure.
For the best Pace solar solutions on the market, contact Compass Solar today.