Florida Solar Net Metering Bill Vetoed is a Big Win for Commercial Property Owners and Businesses
Florida Governor, Ron DeSantis, Vetoed House Bill 741, Eliminating the Cost Increase of Solar Energy for Commercial Property Owners
In a big win for solar energy, Florida Governor Ron DeSantis recently vetoed House Bill 741, which sought to phase down the value of solar net metering and allow utility companies to add fixed charges to solar customer bills. This victory, and the current Solar Investment Tax Credit (ITC), make this the best time to install solar on your commercial building.
House Bill 741 was originally passed on March 8 with a vote of 83-31. Now that the governor has vetoed it, the bill will be sent back to the House, which will be available for consideration through the end of the current session. It will take two-thirds of the members voting in each House to override the veto.
The veto prevents a decrease in the amount paid to solar customers, which would amount to a small fraction of the retail rate. The phase-down would have reduced payouts to solar customers by 50% in four years and continue to drop to the avoided cost rate by 2029. The bill also would have allowed fixed charges to grid-connected solar customers beginning in 2026. The limit of these charges was not stated in the bill, opening the door to additional costs for solar customers when inflation is already high.
26% Solar Tax Credit Available Until the End of 2022
If you are a commercial property owner considering installing rooftop solar, now is the best time to make the switch. The veto of HB 741 keeps solar at its current rate, and the ITC is the highest it will be. The tax credit will remain at 26% until the end of the year, when it will then drop by four percent and continue its decline. This means that all solar energy projects that begin construction this year will be eligible for the 26% tax credit. The credit will drop to 22% in 2023 for all market segments, including commercial and residential, then down to 10% permanently for the commercial and utility markets in 2024. The tax credit for residential properties will come to a close in 2024. Commercial and utility-scale projects that have started construction before December 31, 2023, may still qualify for the 26% or 22% ITC if placed in service before January 1, 2026.
Safe Harbor Can Help Protect Your Solar Tax Credit for Five-Years
Additionally, the current 26% ITC can be protected for commercial solar projects completed up to five years into the future through a simple and prescriptive process called Safe Harbor. Our experts can help you understand how to protect this valuable tax advantage for your business.
Commercial Solar Project Return on Investment
The typical solar investment can see a return on investment (ROI) in five to ten years using the ITC and accelerated depreciation. Advanced Green Technologies value ROI based on energy consumption combined with intangibles such as preserving the rooftop and other additional benefits.
Get Your Free Solar Project Estimate Today
So, if you’re considering solar, give us a call as soon as possible to take advantage of the most savings this year. For a free solar site analysis, call (800) 638-6869 or click here.