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.
30% Federal Tax Credit
Residential Energy Credits
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.
There are several factors that are specific to your installation site that will determine the amount of energy you can produce. The most important factors are your roof size and its orientation along with any buildings, trees or other objects that may block the sun's rays at different times of the year. Solar-Ray provides a thorough evaluation of your home or business and will consult with you to design the system that will achieve the highest possible energy production in line with your budget and aesthetic standards.
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.
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, 2016. 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.
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STEP 3 CHOOSE A QUALIFIED, LICENSED CONTRACTOR AND SCHEDULE YOUR INSTALLATION.
Once you have a good, professional design and a practical financial plan, the final step is to find an experienced, licensed contractor to install your system. It is also important to know that Florida state law requires that anyone contracting to install a photovoltaic system must possess an electrical contractor’s license, a master electrician’s license, or a solar contractor’s license. (The solar contractor’s license must include a PV certification). This same requirement must be met in order to receive the solar rebate from the Florida Solar Incentive Program.
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, 2016. The 30% should be applied after all other rebates and incentives. Excess credit may be carried forward to succeeding tax years.