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.