Solar Tax Credits
26% Tax Credit Through 2022
Tax credits can reduce a substantial portion of the total solar power system cost thanks to an aggressive Federal Tax credit that can save you up to 26% off your new solar energy system.
Tampa Bay Solar recommends confirming the availability of economic incentives with your tax adviser about the tax credit before you install a solar photovoltaic system. Given the 26% tax credit, there’s no better time to go solar. Don’t think about it too long though, the 26% tax credit is set to reduce after 2022. Florida asserts that even if your home value increases due to a solar system, you will not be taxed for that improvement.
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Added Property Value
With any type of solar photovoltaic system, homeowners can expect an added increase in their property resale value. Solar systems for homes and businesses are the future of power. Solar makes “cents” (dollars too), it is better to own your power than rent it from someone else. Keep your money in your business or home.
Business Accelerated Depreciation (MACRS)
Tampa businesses can also take advantage of accelerated Depreciation known as (MACRS): Renewable energy solutions can be depreciated on a 5 year accelerated schedule. Please consult with your tax professional to better realize the cost savings and tax advantages by going solar. Solar Photovoltaic (PV) technology payback (ROI) can depend on the following; local climate, utility rates, exposure to the sun, proper installation and tax credits.
Net metering, is selling the excess power that you generate from your newly installed solar system. It provides benefit to you as a consumer and shortens the payoff or return on your investment.
With a Net Metering type of arrangement, a bi-directional meter is used to record electricity you draw from the grid, and the excess electricity your system feeds back to the grid. The meter spins forward as you draw electricity, and spins backward as the excess is given back the grid. If you use more electricity than your solar system can produce, you will pay for the energy that is consumed beyond what your solar system produces. The energy company will carry forward your excess energy as credits to you for up to a year. Think of it as roll-over minutes like your cell phone. The great benefit of Net Metering is that the power company is essentially your storage battery for your excess energy that your solar system creates during the year.
Net metering is a win-win for the consumer and the power company. The consumer generates electricity during peak load periods reducing the demand on the grid and feeds excess energy back to the power company at a time when the cost of energy is highest. Net metering reduces the need for additional utility sponsored power infrastructure investments in areas with increasing populations.