Solar for Businesses in Miami, Florida
Learn about the financial incentives available for businesses and commercial properties looking to install solar panels in Miami, Florida
Living in Miami-Dade County, installing solar panels at your business seems like a natural choice. In addition to their environmental benefits, solar panels also provide commercial building owners with lower operating costs through a reduction in energy bills, tax credits and a variety of other long-term savings for businesses.
With an average of 250 sunny days a year, Miami businesses are taking advantage of the sun to turn it into clean energy while building sustainable, environmentally-responsible companies. Competitive solar installation costs combined with a state-wide net metering incentive results in an impressive ROI for Miami businesses. The Miami-Dade County Commission Board recently unanimously voted to allow rooftop solar installations as an accessory use in all zoning categories (learn more). This is a final legislative step for the county to adopt the highest Gold designation through the Department of Energy’s SolSmart program which makes it faster, easier, and more affordable for businesses in the city to go solar. Miami-Dade is working toward becoming the first county in South Florida to achieve Gold status.
Top benefits for businesses in Miami to install solar panels:
Lower Energy Bills
Even during the stormy Florida summer days, solar panels continue to attract energy, and this indirect light is enough to power a commercial building. Commercial solar panels can help offset your entire building’s need for power during peak kilowatt hours (most expensive times to use electricity) and can switch your system back to the power grid when utility rates are down again. As an added benefit, net metering allows the extra energy that your system produces to be sent back to your electric utility’s grid. Your utility company will then credit you for the excess energy that your system produces. That credit will be applied to your next bill, lowering your monthly costs and increasing your monthly savings. Solar provides immediate energy savings from Day 1 and long-term savings throughout the life of the system. As utility rates increase so do your electricity bill savings, and your system eventually pays for itself.
The federal solar tax credit allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes through 2019. The solar Investment Tax Credit (ITC) can be claimed as soon as the construction of the system begins. The ITC, combined with a new 100% bonus depreciation benefit for businesses, can help reduce the system price by as much as 60%. Add that to savings from a reduced utility bill, and business owners are looking at a solid investment. The ITC decreases to 26% for projects that begin construction in 2020, 22% for projects that begin construction in 2021, and a permanent 10% rate for projects after 2021. Commercial projects which have commenced construction before December 31, 2021, may still qualify for the 30, 26 or 22% ITC if they are placed in service before December 31, 2023.
Other solar incentives offered by the State include:
- Property Tax Exemptions: Commercial building owners can receive an 80% property tax abatement to exclude the value that a solar system adds to their property. This tax benefit applies to devices installed on or after January 1, 2018, and expires December 31, 2037.
- State sales tax exemptions are also offered to Florida commercial building owners, resulting in a 6% savings.
How Can Businesses Finance a Solar Panel Installation?
Although the cost of switching to solar has decreased substantially over the years, installing panels is still a considerable investment. Luckily, there are several financing options that make solar more accessible. The Property Assessed Clean Energy (PACE) program is a financing option for energy efficiency and conservation projects available to business owners in Florida. PACE pays for 100% of a project’s costs and is repaid for up to 20 years with an assessment added to the property’s tax bill. PACE financing can also be combined with utility, local and federal incentive programs. It may stay with the building upon sale and is easy to share with tenants.
The YgreneWorks program offers commercial PACE financing for renewable energy property improvements in Miami-Dade County. The program provides immediate accessible financing with no upfront payments for energy efficiency, renewables, water conservation, and, in certain areas, hurricane protection, electric vehicle charging stations and seismic upgrades.
What is the Return on Investment for a Commercial Solar Installation?
The typical solar investment can see a return on investment (ROI) in five to 10 years when using the ITC and accelerated depreciation. Advanced Green Technologies values ROI based on energy consumption combined with intangibles such as preserving the rooftop and other additional benefits.