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Florida Solar Net Metering Bill Vetoed

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 it has been vetoed by the governor, the bill will be sent back to the House, where it 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 for additional costs for solar customers when inflation is already high.

Read the letter from Govonor Ron DeSantis

26% Solar Tax Credit Available Until the End of 2022

If you are a commercial property owner who has been 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 four percent and continue its decline. This means that all solar energy projects that begin construction this year 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. 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.

 

2020 Solar Energy Tax Credit for Businesses

Solar Investment Tax Credit (ITC) 2020 Step Down

Solar Tax Credits for Businesses in Florida 2020

Take Advantage of Important Solar Tax Credits for Bussiness and Commercial Properties

As the cost of going green becomes more affordable each year, many commercial building owners are tempted to hold off on installing solar panels in an attempt to get the best deals. But as the federal investment tax credit (ITC), also known as the solar tax credit for businesses, decreased on January 1 from 30% to 26%, the clock is ticking on getting the best deal on your solar investment. Now is the best time to install a solar roofing system before next year’s step-down.

What is the Solar Tax Credit for Businesses?

The federal solar tax credit previously allowed commercial building owners to deduct 30% of the cost of installing a solar energy system from their federal income taxes until 2020. The tax credit can also be claimed as soon as the construction of the system begins. The credit and depreciation benefit helped reduce the system price by as much as 60%. Add to that savings from a reduced utility bill, and business owners were looking at a bright investment.

Solar ITC Step-Down Schedule

Since the ITC was enacted in 2006, the U.S. solar industry has grown by more than 10,000%, with an average annual growth of 50% over the last decade. Even with this success, starting January 1, 2020, the value of the tax credit began its decline from 30% to its current 26%. Next year, the credit drops even further to 22% and plummets to a permanent 10% in 2022 and onward. A four percent decrease in 2021 may sound small, but when installing a solar panel system, especially on large commercial buildings, the loss in savings can be significant.

Things to Consider When Installing Solar on Your Commercial Property

You’ve decided now is the time to go green – so what’s next? Be sure to confirm the installation timeline once you have chosen a company. Schedules vary so it is important to confirm that your system will be installed before the end of the year to get the maximum tax incentive.

Seeing (the Savings) is Believing

Some of Florida’s largest businesses like Publix Super Markets, Ed Morse, Lockheed Martin, and Advanced Roofing have installed solar on their properties, from rooftop installations to solar carports. Solar has a short payback period, provides steady financial returns, and helps business owners 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.