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Florida Utility Rates and Fuel Surcharges Rising in 2022

Florida Utility Rates and Fuel Surcharges Rising in 2022

Florida businesses could see a 30% price increase for energy in the next three year’s due to a combination of Utility base rate and fuel surcharge increases beginning in 2022

Businesses in Florida could see a 30% price increase for energy in the next three years due to a combination of utility base rate and fuel surcharge increases starting in 2022.

Utility customers in Florida have already begun to feel the pinch as an increase in the cost of natural gas has resulted in higher monthly electric bills since May. The state Public Service Commission recently approved a request by Utility providers to collect $302.5 million from customers to cover additional fuel costs for power plants. The additional charges will continue through the end of the year.

However, there are bigger, more long-term base rate increases on the horizon from Utility providers. To offset the rise in expenses and accommodate the state’s population growth, Utilities filed a four-year rate plan to raise customers’ monthly electric bills by 18% by 2025. Small- and medium-sized businesses will see bills increase at an average annual rate of 3.9% to 4.4% between 2021 and 2025. Large commercial and industrial customers with more complex rate structures should contact their account managers for information about their rate adjustments. With the 4% fuel increase we have already seen in May, combined, these increases could well exceed over 30% in total.

How Solar Can Offset Utility and Gas Rate Increases

One of the best ways businesses can offset some or all of their electricity use is by making a localized solar investment with a solar roof or carport system, and there’s no better time than the present. The solar investment tax credit (ITC), which was scheduled to drop from 26% to 22% this year, will remain at 26% for two more years. This means that all solar projects that begin construction this year and next will be eligible to receive 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.

For commercial property owners, solar benefits the bottom line with the ITC equal to 26% of the basis invested in eligible solar property that has begun construction. The typical solar investment can see a return on investment (ROI) in five to 10 years using the ITC and accelerated depreciation. Advanced Roofing and Advanced Green Technologies value ROI based on energy consumption combined with intangibles such as preserving the rooftop and other additional benefits. But beyond the economic benefits, solar is the smart choice for our environment.

With energy costs on the rise, now’s the time to grow your bottom line and increase your building’s value with solar. Call (800) 638-6869 for a free solar evaluation or click here.

3 Reasons Why Your Businesses Should Install Solar in 2018

why-your-business-should-install-solar-in-2018-Florida

3 Reasons Why Your Businesses Should Install Solar in 2018

  1. 14% Reduction of the Corporate Tax Rate
  2. 100% Depreciation Bonus
  3. 30% Tax Credit Available

1. 14% Reduction of the Corporate Tax Rate

One of the most significant benefits of installing solar under the new tax plan is the reduction of the federal corporate tax rate from 35% to 21%. An important deciding factor for businesses considering going solar is the increase in profits that can result.

While this historically low corporate tax rate brings new investable cash to the business world, it simultaneously produces a net increase in the cost of energy for the same business. Under the previous tax code, a $1,000 monthly power bill would be deducted as an operating expense at a 35% percent yielding a net cost of $650.00. Under the new code, that same $1,000.00 bill is deducted at a 21% rate generating a net power bill of $790.00. Your power bill is going up 21.5% regardless of the current utility rates from the operating tax deduction alone, making renewable energy more valuable than ever.

For increased savings, solar systems purchased outright with cash avoid the taxes that come with loan interest payments, making cash a more attractive option than financing. Add to that an increased rate of return each year as a result of the lower tax rate and solar becomes a viable investment for businesses.

2. 100% Bonus Depreciation

With depreciation now at 100 percent, a business can deduct the entire cost of the solar system in its first year rather than spread it out over a period of time. This allows corporations to take advantage of the tax savings now rather than in the future, resulting in growing returns from going solar as well as an increase in the total value of the project.

3. 30% Tax Credit Available

The federal solar tax credit allows you to deduct 30% of the cost of installing a solar energy system from your federal income taxes until 2020. You can also claim the tax credit as soon as the construction of the system begins. The tax credit and depreciation benefit can help reduce the system price by as much as 60 percent. Add that to savings from a reduced utility bill, and business owners are looking at a bright investment.

Seeing is Believing

Some of Florida’s largest businesses like Publix Supermarkets, Ed Morse, Lockheed Martin, and Advanced Roofing have installed solar on their properties, from rooftop installations to solar carports. Solar has short payback period, provide steady financial returns, and help business owner’s hedge against rising energy prices.   According to our data, Advanced Roofing paid on average $1,623.00 in monthly electricity bills before going solar. After the installation of an 84 kW solar carport at our headquarters in Fort Lauderdale, our electricity bill is approximately $890.00 ­­– a 55% reduction.

How much money can solar save your business?

Contact us today for your complimentary energy audit and project quote.

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