In just over a week, the state of Florida’s solar rebate program is going to die. June 30th will be the day of execution, barring some eleventh-hour miracle. Small solar businesses are already feeling the pressure, with projects rapidly falling to the wayside and contractors looking north to states like Georgia and South Carolina that maintain a better political environment for solar power.
Mourning the death of Florida solar rebates
Florida’s Solar Energy System Incentives program was enacted in 2006. It offers a generous $4 per watt rebate for home solar power, up to $20,000 for photovoltaic (PV) systems. That means a 5,000-watt (5 kW) system, costing approximately $40,000, would receive a healthy dose of subsidies between its state rebate and the federal tax credit. The latter credits 30 percent of initial costs — roughly $12,000 in this example — and the state rebate would pay the maximum $20,000, meaning that 80 percent of a 5-kW solar system would be subsidized.
That has made for easy sales by Florida solar contractors, evidenced by the fact that funding for the rebate program doesn’t last long, even with the help of Recovery Act money. But the expiration of Florida’s solar rebates will have a very damaging effect on business. Even the smallest systems eligible for the rebate – 2 kW – garnered an $8,000 state rebate at an overall cost of $15,000.
Admittedly, these rebates are disproportionately high. This is because the program was developed in 2006 and PV prices dropped considerably since then. Solar business owners in Florida understand that, but are disappointed by the total erasure of state solar rebates, preferring, according to one contractor, a slash of the credit to $2-per-watt to keep with the drop in PV prices. Unfortunately its a tight budget year for all states, including Florida, and a prospective rebate-renewal bill died in committee at the state legislature.
Solar incentive programs still available:
There is a ratepayer-funded $24.5 million pool of cash that utilities use to fund energy conservation initiatives.
The Energy Efficiency and Conservation Block Grant allows municipalities to apply for grants to fund solar and other energy efficiency initiatives.
Florida law also allows local-level PACE financing programs that fund clean energy projects through individual property tax hikes.
JEA (formerly Jacksonville Electric Authority) offers small rebates for energy efficient new homes and up to $800 for solar hot water systems.
But none of that will make up for the loss of state rebates, which at this point will likely bring Florida’s solar industry to a screeching halt. In some states, utilities pick up the slack, but those states typically have renewable portfolio standards requiring utilities to obtain a certain percentage of renewable power. In Florida, only JEA has such a program. So, until some RPS or new rebate legislation is passed, solar power, along with the jobs and clean energy that comes with it, is on hold in the Sunshine State.
Source: Florida Times-Union (via iStockAnalyst)
Photo Credit: Wallpapers for You & Top News
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