STEP 2

Create a Financial Plan that Combines Your Production Potential with Incentives from State and Federal Agencies and Your Local Utility.

Electricity from a photovoltaic (PV) system today costs considerably more than what we currently pay for it from the local electric company. But fortunately, there are several federal, state and local incentives that combine to make solar power a preferred alternative. To better understand some of these incentives, it helps to know how PV is generally discussed in terms of price.

Understanding Pricing Terms

Each PV module has a specific power rating that identifies how much electricity that module will produce at the point the sun is strongest. The ratings from all of the modules in a system are totaled to get the full power rating for the system. The cost of your complete system – modules, inverter, mounting system, wiring, and installation – is then divided by the total power rating to get the cost per watt of maximum rated power. For example: A 2,000-watt system, that has a total cost of $18,000, is considered to cost $9 per watt.

Average Costs

Currently, the national average for installed PV is between $8 and $10 per watt depending on the size of the system, variables in the installation, and whether a battery back-up system is included. The purpose of government incentives is to encourage greater production levels that would eventually lower the average costs through economy-of-scale and installation efficiencies. At Solar-Ray, we are committed to the goal of cost-effective solar energy. It is our objective to provide PV systems at a cost lower than the national average whenever possible.

Incentive Database

Below is a list of the major incentives for both residential and commercial PV installations available in Florida. For a complete listing of state, federal, and utility incentives, including grants, loans and other programs, you can visit this website provided by the North Carolina Solar Center.

Residential Financial Incentives

Florida State Solar Rebate

The State of Florida is currently providing rebates for the purchase and installation of residential PV systems in the amount of $4 per watt. The system must be rated for at least 2,000 watts of DC power and the maximum rebate is $20,000. You can click here for more information.

Residential Solar Tax Credit for Federal Income Tax

A 30% tax credit is allowed on a residential PV system installation that is put in service after January 1st, 2006 and before December 31st, 2008. The 30% should be applied after all other rebates and incentives have been deducted and the maximum allowable credit is $2,000. Excess credit may be carried forward to succeeding tax years. You can click here for more information.

Utility Incentives

A growing number of utilities in Florida are offering a variety of incentives for energy efficiency and solar power. Be sure to check with your utility and the national incentive database referenced above.

Commercial Financial Incentives

Florida State Solar Rebate

The State of Florida is currently providing rebates for the installation of PV systems on businesses in the amount of $4 per watt. The system must be rated for at least 2,000 watts of DC power and the maximum rebate is $100,000. You can click here for more information.

Business Energy Tax Credit for Federal Income Tax

A 30% tax credit is allowed on a PV system purchase and installation for a place of business that is put in service after January 1st, 2006 and before December 31st, 2008. The 30% should be applied after all other rebates and incentives have been deducted. There is no maximum limit to the deductible amount. Excess credit may be carried forward up to 20 succeeding tax years. You can click here for more information.

Modified Accelerated Cost-Recovery System (MACRS)

This is an accelerated depreciation method in which the IRS allows businesses to depreciate the actual cost of a PV system (after all other financial incentives have been deducted) over a 5-year period. You can click here for more information.

Utility Incentives

As mentioned in the residential incentives, a growing number of utilities in Florida are offering a variety of incentives for energy efficiency and solar power. Be sure to check with your utility and the national incentive database referenced above.

Loans and Mortgages

The best time to purchase a PV system is when the building or home is first being built or purchased or when an existing mortgage is being refinanced. This allows the owner to amortize the cost of the PV system (after all incentives have been realized) over the term of the mortgage. The long-term amortization of up to 20 or 30 years spreads out the cost over time where it is offset by the savings from the system’s electricity production. Home equity loans and second mortgages are additional options. Energy Efficient Mortgages, or EEMs, can also provide important features to assist you in developing the right financial plan. For more information, click here.

STEP 3

ONCE YOU HAVE OBTAINED A SOLAR SITE EVALUATION WITH A RECOMMENDED SYSTEM DESIGN, AND CREATED A VIABLE FINANCIAL PLAN, THEN IT’S TIME TO PROCEED TO STEP THREE:

Choose a Qualified Licensed Contractor and Schedule Your Installation.