Florida Solar Rebate

Legislation

Senate Bill 888, the Florida Renewable Energy Technologies and Energy Efficiency Act, became effective in 2006. The hurricanes of 2004 and 2005 demonstrated Florida's vulnerability to supply disruptions of electricity and the Energy Act took the first comprehensive step towards a more diverse and reliable energy future for Florida. By generating more electricity from renewable sources and providing rebates, Florida hopes to increase their capacity and improve overall energy efficiency in the state. The legislation includes a Renewable Energy Technologies Tax Incentive which provides sales tax exemptions and corporate income tax credits for the production of clean energy, and the Solar Energy Systems Incentives Program which provides rebates for solar system installation in homes and businesses.

The Energy Act also establishes the Renewable Energy Technologies Grant Program, which will provide matching grants for research and demonstration projects associated with the development of renewable energy systems, alternative fuel vehicles, and other energy technologies. It creates tax incentives for the manufacture, sale, and use of hydrogen fuel cells and for the production, storage, and distribution of alternative fuels such as hydrogen, biodiesel, and ethanol. The act creates the Florida Energy Commission, a nine-member panel that will advise the state legislature on energy policy based on the guiding principles of reliability, efficiency, affordability, and energy diversity. Finally, the act provides a one-week sales tax holiday for the purchase of energy efficient products in early October.

Solar Energy Systems Equipment Sales Tax Exemptions

Solar energy systems have been exempt from Florida's sales and use tax since July 1, 1997. The term "solar energy system" means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas or electricity. Vendors of solar energy systems or components are required to document exempt sales.

This exemption was originally set to expire July 1, 2002, but was extended an additional three years. In May 2005, the exemption was made permanent when House Bill 805 was signed into law.

Rebate Programs

The Florida Solar Energy System Incentives Program was established in June of 2006 with the passage of Senate Bill 888. Financial incentives were provided for installing solar energy systems between July 1, 2006 and June 20, 2010. Due to the popularity of the program, the waiting list from the 2007-2008 incentives were rolled into the budget for 2008-2009 and all of those incentives have been exhausted. Florida is currently accepting applications for funding which might be appropriated from 2009-2010. If the program is funded, rebates will be based on the order in whic they were received. The program is administered by the Department of Environmental Protection and provides rebates for homeowners, businesses and non-profits for installing photovoltaic (PV) systems 2 KW or larger in capacity, and solar water heating systems that provide at least 50% of a building's hot water consumption.

For PV systems, the residential rebate is $4/watt DC with the incentive capped at $20,000. For commercial, non-profit, multi-family and public facilities the rebate is also $4/watt DC, but is capped at $100,000.

For Solar Water Heating systems, the residential rebate is $500 per installation, and for commercial, non-proft, multi-family and public facilities the rebate is $15 per 1,000 BTU per day, up to $5.000 BTUs, which must be metered. Solar Thermal Pool Heaters receive $100 per installation. Application for rebates must be submitted within 120 days of the purchase of the solar system.

Clay Electric Cooperative is a Touchstone Energy Cooperative covering fourteen North Florida counties, including Gainesville, Keystone Heights, Lake City, Orange Park, Palatka, and Salt Springs. It offers low interest loans to help customers finance solar water heaters and solar pool heaters. Basic qualifications for an energy conservation loan include a good credit history, good payment record with Clay Electric and service with Clay Electric for one year. An energy survey is required. A $25 loan processing fee will be assessed on all applications submitted for loan consideration (approved and disapproved). The minimum loan amount is $1,000, the maximum is $5,000. The interest rate is 8% or 11% with a monthly loan payment of $100.

Clay Electric Cooperative also provides rebates to its residential members when they purchase qualified solar water heaters. Eligible solar water heaters can be either passive or active systems. The proposed solar system must meet Florida Solar Energy Center specifications and be installed by a contractor certified to install solar water heating systems by the Florida Department of Professional Regulation Construction Industry Licensing Board. The incentive amount is $0.01 per BTU with a maximum incentive capped at $600 and a maximum system size of 60,00 BTUs.

Gulf Power Solar Thermal Water Heating Pilot Program was approved by the Florida Public Service Commission for one year (January 1, 2009-December 31, 2009). Gulf Power will provide $1,000 rebate to qualifying customers and will also install a limited number of systems for free in low-income, multi-family apartments. Applicants will receive a home energy "check-up", complimentary of Gulf Power, as well as guidelines for successful solar thermal water heating installations.

The JEA Solar Incentive Program provides financial incentives to JEA's residential and commercial customers who install new and retrofit solar hot water heaters on homes and businesses. The highest rebates are available when customers use local installers. There is a maximum award of $5,000 for each new commercial installation and up to 30% of total cost (up to $500) to restore an existing solar water heating system to working order. When installed by local vendors, $800 rebate per installation. Residential solar water heaters installed by non-local vendors is $400 per installation. Commercial solar water heaters installed by local vendors receive a rebate of 30% of the total installation costs, capped at $5,000. When installed by non-local vendors, commercial solar water heaters receive a rebate of 15% of the total installation costs, capped at $2.500.

Incentives to restore older solar systems are 30% of the total costs, capped at $500. If non-local vendors restore a system the rebate is 15% of the total costs, capped at $250.

Since the program's inception in 2002 through January 2009, a total of 531 solar water heater systems have been installed under the program. The incentive only applies to the installation of solar water heating systems but does not apply to pool heating systems or photovoltaic (PV) systems. If other incentives (rebates, grants, etc.) are used to fund a solar hot water system, these funds combined with JEA funds cannot exceed the cost of the system.

Progress Energy Florida launched the Solar Water Heating with EnergyWise Program in February 2007 to encourage its residential customers to participate in its load control program and install a solar water heating system. A $450 credit on the customer's electric bill is offered to offset the purchase of a solar water heating system. Monthly EnergyWise credits for covered devices (whole-house electric cooling, heating and water heating) of ~$30/year; and EnergyWise monthly pool pump credit, if applicable, of $30 per year.

Progress Energy Florida installs EnergyWise equipment in a participating customer's home (at no cost) that enables the utility to briefly interrupt power to the customer's hot water system, heating or cooling system, or pool pump during periods of peak demand. Customers then receive a monthly credit on their energy bill for participating in the EnergyWise program and a $450 credit on their electric bill to offset the cost of installing a solar water heating system.

Solar Water Heating with EnergyWise customers are required to have whole-house electric heating, cooling and water heating installed with EnergyWise equipment and participate in the program for a minimum of three years. Otherwise, the customer must reimburse Progress Energy for a portion of the program incentive.

Orange County Solar Hot Water Rebate Program

Orange County offers a $200 rebate on newly installed solar hot water systems in the county. To be eligible for the rebate, the system owner must complete an application and provide proof of an energy audit, installation date and receipt of a solar hot water rebate from the utility. Only new systems, installed on or after April 22, 2008, are eligible and the rebate application must be received within six months of installation. Applications will be processed on a date-received priority basis and will continue as long as the program funding is available. Only one rebate incentive will be provided per property and pool systems are not eligible.

Lakeland Electric Solar Water Heating Program

Lakeland Electric, a municipal utility in Florida, is the nation's first utility to offer solar-heated domestic hot water on a "pay-for-energy" basis. The utility owns and maintains the solar water heaters they install on participating customers' homes and bills them only for hot water delivered to the faucet. The utility installs revenue-grade energy meters to measure the thermal output of the solar water heating systems. These meters internally convert the thermal energy (Btus) to an electricity equivalent (kWh) for billing purposes. Whereas hundreds of utilities across the U.S. offer their customers a green power option for a premium, the Lakeland program offers a customer-sited solar energy option that reduces the program participant's overall energy costs.

Gainesvilled Regional Utilities Solar Feed-in Tariff

Note: Gainesville Regional Utilities announced in March 2009 that it has received enough applications to meet the program caps for 2009 and 2010. However, GRU encourages additional applications since it expects some projects to fall through.

Gainesville Regional Utilities is a municipal utility owned by the City of Gainesville and will offer a solar feed-in-tariff for solar photovoltaic (PV) systems.

Modeled after Germany's feed-in tariff, Gainesville Regional Utilities will purchase energy from qualified PV systems via a Standard Offer Contract at set rates for a period of 20 years plus the remaining balance of the calendar year in which the contract is executed. Both residential and commercial generators are eligible. Commercial generators will no longer have the option to net-meter once the feed-in tariff takes effect. Residential customers with PV systems less than 10 kW will have the option to enter into a feed-in tariff agreement and sell 100% of their electricity to Gainesville, or to net meter and only send the excess electricity to Gainesville Regional Utilitise under the terms established for that program. For those residential customers who choose to net meter, a rebate is offered to those who qualify.

The fixed rate for the life of the contract starts at $0.32/kWh or $0.26/kWh depending on size and application (for contracts executed in 2009 and 2010) and decreases over time. There are separate rates for: 1) building or pavement mounted (any size) or ground mounted (< 25 kW) systems; and 2) free standing (non-building or non-pavement mounted) systems, per the following schedule:

The general manager of Gainesville Regional Utilities is authorized to cease to offer new contracts after a total of 4 MW of PV has been connected to the utility per year, subject to City Commission review. All renewable energy credits (RECs) associated with customer generation belong to the utility.

$0.32/kWh for building- or pavement-mounted systems of any size or for ground-mounted systems <25 kW; $0.26/kWh for free-standing systems >25 kW Terms: 20-year contract.

Miami

Miami has put forth an initiative to become more energy efficient. The big city has instituted some rebates for home owners to attempt to lower emissions and inefficient energy use. Home owners who install a High-Efficiency Clothes Washer are eligible for up to $150 rebate from the city.

In 2005, Miami also enacted an incentive for city builders to install energy efficient solar power panels in new buildings. This article originally appeared on Solar Power Authority. The incentive is for contractors who apply for permits for building improvements. The city promises to expedite permits submitted for commercial or residential improvements that are environmentally friendly.

To keep up with growing trends, the Miami-Ft. Lauderdale area just opened its first solar power commercial building in January 2009. The solar powered building was constructed with the idea that taking advantage of tax rebates could save the owners up to $100,000 per year or $4 per kilowatt of energy.

Tampa

Tampa has derived incentives through the city electric company, Tampa Electric. The company has provided rebates up to $30.00 per ton or $0.0025 per Btu. The incentive is for any home owner who decides to install equipment that meets Tampa Electric's energy efficient standards.

Tampa Electric also offers incentives for businesses that install commercial units that lower energy usage during peak hours through their Commercial Load Management Program.

Orlando

OUC has a variety of rebates and incentives for home improvements that create a better energy efficient home. Incentives include up to $100.00 in rebates to install better installation in attics. Solar panels are also given incentives for rebates up to $75.00. The highest rebate also gives back $300 for home owners who install more energy efficient heat pumps.

In addition to rebates, the Orlando Utilities Commission also offers loans for home owners who wish to install solar panels. Depending on the system, customers may borrow amounts up to $15,000 to improve home energy usage through solar power.

The Orlando Utilities Commission has also introduced the Pilot Solar Program that offers to buy back credits from consumers who have installed solar panels. Incentive payments are equal to $0.05/kWh for PV and $0.03/kWh for solar water heating (SWH) systems. The payment credits show on customer utility statements monthly.

The Orlando Utilities Commission (OUC), through its Pilot Solar Program, offers to purchase the environmental attributes or renewable energy credits (RECs) from customers who install a photovoltaic (PV) and/or solar thermal energy system on their property. Incentive payments are equal to $0.05/kWh for PV and $0.03/kWh for solar water heating (SWH) systems and appear in the form of a credit on customers' monthly utility bills.*

Under this program, the electricity output of the PV system is used on-site and REC payments are based on the system's total output. Any net excess generation produced by PV systems is credited to the system owner at the utility's full retail rate.

This program is available for the first 600 kilowatts (kW) of residential PV installed and the first 1,200 kW of residential SWH generation capacity, as well as for the first two megawatts (MW) of "general service" (commercial) PV and the first 2 MW of "general service" SWH capacity.

Production agreements have an initial term of five years and automatically renew for five-year terms unless terminated by written notice by either party. Applicants must contract with a company listed in OUC's Preferred Contractor Network for solar installations. For installation financing options, OUC customers may apply for a low-interest Residential Solar Loan.

Jacksonville

Jacksonville's energy supplier also offers businesses a way to receive energy rebates that help businesses better their community energy usage. Incentives are better for customers who use local vendors. Home owners can receive up to $800 in rebates using a local vendor, and businesses can gain up to 30% of the cost to install solar heating but no more than $5,000.00.

Jacksonville also offers owners of broken water heaters to upgrade to better efficient heaters and restore currently broken units. Owners of broken units can save up to $500 in rebates for repairs.

Solar energy brings high incentive rewards for Jacksonville residents. The city offers up to $800 to install solar power heating systems in the home. This offer is in addition to the thirty percent break from the federal government. Jacksonville has also analyzed cost and found that use of solar power products pay for themselves in five years after installation.

Tallahassee

The City of Tallahassee Utilities also offers a wide range of incentives. The city offers rebates for home owners who purchase Energy-Star plug-in appliances. Large appliances such as refrigerators, freezers and clothes washers that meet energy efficient standards and have been purchases after February 20, 2008 can be reimbursed up to $100 depending on the unit. The city also offers a huge savings to those who decide to install more efficient insulation. Several standards are required depending on the nature of heating. Each standard offers rebates if installation meets city requirements. For those who need financing for solar energy products, Tallahassee offers small loans with as low as 5% rates. The city provides consumers with loans of up to $20,000 to help finance more energy efficient systems in the home. They provide consumers with a loan handbook for all products that are eligible for these incentives.

The Federal Government also provides a range of incentives to conserve energy and help reform environment degradation. The Energy Act of 2005 gives tax payers up to a 30% rebate incentive on installation and equipment for solar electric or solar domestic hot water system. The incentive does not allow in excess of $2,000.00.

Solar Business News

"The Push for Solar Power in Florida"

Florida Power & Light (FPL) will begin building one of the world's largest photovoltaic solar power plants in the world later this year. The move was made to propel Florida to join in many of the recent "go green" initiatives throughout the country. Governor Crist is trying to pass legislation this year that would require electric companies to produce 20 percent of their energy from renewable sources by 2020. FPL previously announced plans for 110 megawatts of solar capacity to be built and construction is now under way on plants in DeSoto County and Martin County -- the first two large-scale solar developments in Florida. This most recent plant will be built on land owned by Babcock Ranch north of Fort Myers. The solar panels will sit on 350 acres within the city and provide the city with all its electricity needs. More than half of Babcock's 17,000 acres will permanently remain greenways and open space,while the city will also adjoin the 73,000-acre Babcock Ranch Preserve that has been purchased by the state. According to FPL, when the plant is complete in 2010 it will generate up to 75 megawatts and provide enough power for up to 11,000 homes. The Martin Next Generation Solar Energy Center as it is being called, is one of three solar-powered plants FPL announced plans to build last year. The other two are in DeSoto and Brevard counties.

At 25 megawatts the DeSoto Next Generation Solar Energy Center, which is currently under construction, will be the largest photovoltaic solar facility in the nation when it is completed at the end of this year. The Solar Energy Center will use 90,000 photovoltaic panels on 180 acres of land and provide enough electricity to power more than 3,500 homes - more than 20 percent of the population in DeSoto County. The California company SunPower Corp will supply the solar panels. SunPower manufactures the highest-efficiency solar systems available today. SunPower systems use Tracker technology, which follows the sun's movement across the sky throughout the day, capturing up to 25 percent more energy than conventional systems. The facility is providing significant economic benefits to DeSoto County, creating more than 200 jobs during peak construction and providing more than $2 million in annual tax revenues by the end of 2010 to help boost the local economy.

The Space Coast Next Generation Solar Energy Center will also use SunPower's high-efficiency solar panels and will commercially deploy its latest solar panel technology. This innovative technology will provide more electricity at a lower cost and will further solidify SunPower's position as the world leader in producing the most efficient solar panels.

Not everyone believes Florida Power & Light's decision to build large scale solar power plants is a good idea. Some renewable energy advocates question whether FPL is trying to gain favor for renewable energy legislation which favors large energy companies over consumers by pushing for large solar plants over small-scale solar production on homes and businesses. The National Renewable Energy Laboratory has proven that small-scale solar development is cheaper and provides more jobs than large scale developments, but that isn't stopping Florida Power & Light from making a bid to be the dominant solar energy provider in Florida.

Older data that used to be contained within this article can now be found here.