The PV and Solar Thermal Market in Florida Current Situation and Development 2 nd Germany Florida Solar Energy Conference Solar Boom in the U.S.A. October 20, 2008 R. Bruce Kershner, Executive Director Florida dasoa Solar Energy egyindustries Association ssocato (FlaSEIA)
Green is Gold Energy Prices Soar Home Building Slows New Era in Home Construction Home Builders Investing in Green Construction Commercial/Small Businesses Going Green
Financial Incentives Sales Tax Exemption (6-7%) Property p y Tax Exemption State of Florida Rebate ($500 to $100,000) Utility Rebates (vary) Local Rebates (Orange County = $200) SunBuilt Builder Rebates Federal Tax Credits (30%)
Financial Incentives (continued) Solar energy equipment is exempt from sales tax in Florida List t of eligible ibl equipment maintained i by the Department of Revenue Labor is not taxable; therefore, the entire installed system is sales tax free Sales tax rate is determined by county (and includes local option sales tax)
Property Tax Exemption First approved in 1980 Lapsed in 2000 Legislature approved in 2007, but vetoed Re-enacted in 2008, signed into law (HB 7135 The cost/value of the solar energy system will not be added to the property s appraised value
State of Florida Rebate Established by the 2006 Legislature $2.5 million in 06, $3.5 million in 07, $5 million in 08 Solar water heating: $500 for a resident, $15/1000 Btu ($5000 cap) for a business Photovoltaic system: $4/watt with a $20,000 cap for resident, $100,000 000 cap for a business (minimum 4kW system)
Utility Incentives City of Tallahassee Solar Water Heating: $450 (residential only) Clay Electric Cooperative Solar Water Heating: $0.01/Btu output (residential only) Gainesville Regional Utilities Solar Water Heating: $500 (residential and small business)
Utility Incentives (continued) JEA Solar Water Heating: Residential: $800 (local vendor), $400 (non-local vendor) Commercial: 30% of installed cost, $5,000 cap (local vendor; 15% of installed cost, $2,500 cap (non-local vendor) OUC (Residential and Commercial) Solar Water Heating: $0.03/metered kwh equivalent Photovoltaic System: $0.05/metered kwh Progress Energy Solar Water Heating: $450 (residential only; must participate in Energy Wise Load Management)
Utility Incentives (continued) Gulf Power Solar Water Heating: Residential: will offer a $1,000 rebate payable to customers The program is currently before the Florida Public Service Commission for approval
Utility Incentives (continued) Gainesville G i ill Regional Utility just announced the proposed development a solar Feed-in-Tariff iff (FIT) Program Commissions: forge ahead and draft an ordinance Set rate at $0.26/kWh Discontinue PV rebates and net metering
Local Rebates Orange County (Orlando, Florida) Offers a $200 rebate for solar water heating to supplement state of Florida, OUC and Progress Energy rebates Requires an energy audit, proof of receipt of utility rebate, and is subject to availability of funding
SunBuilt Builder Rebates $500 rebate to home builders installing solar water heating on new homes Silver level l builders offer solar to all customers Gold level builders install solar as a standard feature on all new homes Gold builders are eligible for a free solar water heater on a model home
Federal Tax Credits Positive developments in the solar industry with the passage of H.R. 1424, the Emergency Economic Stabilization Act of 2008 Extension of the solar tax credits will create a domestic solar industry with hundreds of thousands of jobs Providing clean, affordable, carbon-free energy to millions of American families, businesses, and communities
Federal Tax Credits The solar investment tax credit (ITC) provisions will: Extend for 8 years the 30-percent tax credit for both residential and commercial solar installations; Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit (effective for property placed in service after December 31, 2008);
Federal Tax Credits (continued) Eliminate the prohibition on utilities from benefiting from the credit; Allow Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit; Authorize $800 million for clean energy bonds for renewable energy generating facilities, including solar.
For More Information www.flaseia.org 407-339-2010 www.flaseref.org 1-800-59SOLAR www.fsec.ucf.edu/en 321-638-1000