Do Solar Panels Raise Your Taxes?
Solar panels do not tend to increase or decrease the property taxes on your real property although some states offer an increase in the property tax after the installation of a solar panel. If you are concerned about the tax rate, feel free to get in touch with your state and its laws on solar panels.
Here are some steps to follow if you plan to sell electricity back to the grid and How Much Can You Sell Electricity in Orlando.
1. Check with Your State and Utility Company
There are more than 40 states in the US that allow for the process of net metering to take place. This means that households that generate excess electricity through their solar panels in these states are allowed to receive checks from the power company for the extra energy that is sold back to the grid.
In Florida, the net metering system depends greatly on the size and kind of solar system that is installed in your home. In Florida, the law insists that the net metering customers are compensated for their electricity at the retail price. This means the customers are paid for the energy produced by them at the same rate as their electricity. In 2017, this rate was about 10.8cents/kWh.
These rules of net metering may vary from state to state and also depend on the utility companies. Therefore, if you are producing more energy via your panels that you can use, look into the process of net metering in your state.
2. See About Tax Benefits
Multiple states in the US offer tax baits to people that take an active part in making their homes eco-friendlier, green or sustainable. Depending on where you live in the US, you can avail of federal solar tax credit along with state-level tax credit.
3. Install and Sell
The simple rule of earning money from your solar panels is to generate more electricity than you can use. If you haven't installed your panels, make sure to study your electricity bills in-depth and calculate the average amount of energy your house may need. You can determine the average electrical use on your own or have a professional do it for you.
The solar panel system that you may choose for your home must generate more electricity than is needed. On good sunny days, when your solar panel produces more energy than you can store, sell it back to the grid and get paid for it. Although there is a certain limit to the energy you can sell back.
In Florida, the systems cannot be sized to generate electricity increasing 115% of the home’s monthly kWh usage. Moreover, individual systems are not allowed to send more than 2MW of energy back into the grid.
There are many people in all of America that have taken the eco-friendly road and installed solar panels. They generate green electricity from renewable sources which reduces their bills and helps them get paid by the power companies. Solar panels are one of the greatest inventions of the 21st century and there are multiple benefits of going solar.