
Government Grants for Solar Business in Florida by Ronald Kimmons
With the objective of reducing dependence on nonrenewable fuel sources, federal and state governments have created various grants and rebate programs to encourage businesses and individuals to use or produce renewable energy. Some private organizations also offer grants to encourage the use and production of electricity from photovoltaic cells. These grants constitute an effort to motivate businesses to create and innovate the production of products and services that benefit the entire community.
Purpose of Grants
In 2006, the government of Florida created the Florida Energy Act, which promotes the preservation of the environment by increasing the use of renewable energy, especially among businesses. This law pushes business sectors to use alternative sources of power, including electricity from photovoltaic cells. Aside from offering grants and incentives to businesses and individuals, the act offers a tax credit to Solar Panel companies and businesses that promote and use Solar Energy within the area.
Department of Treasury Renewable Energy Grant
Florida-based solar businesses may apply for the Department of Treasury Renewable Energy Grant. Essentially, this grant pays an equivalent of up to 30 percent of the base cost of the property being used as a photovoltaic power source. Businesses using and producing passive Solar Systems–which involve the harnessing of energy from the sun without the help of photovoltaic cells–do not qualify for this grant.
Energy Efficiency Loan Program
Miami-Dade County, in partnership with the South Florida Regional Planning Council, offers a $1.5 million loan program to companies that commit to energy efficiency in starting their businesses. With this, people who wish to start a business that focuses on solar energy can apply for this program. The maximum incentive a recipient may get is $100,000. The amount, however, must be paid back within three years at an interest rate of 2 percent.
SalesTax Exemption
The State of Florida issues tax credits for businesses producing, installing and promoting renewable energy sources such as photovoltaic and thermal solar arrays. The tax claims can reach about 30 percent of the cost of a new solar energy system. In particular, businesses and residential homes can benefit from Solar and CHP Sales Tax Exemption. Interestingly, the State does not put a limit on the maximum incentive beneficiaries may get. However, each piece of solar equipment has to be enrolled under the program and be approved by the Florida Solar Energy Center. Since July 1997, the State of Florida has not been collecting taxes from the sales of photovoltaic or thermal systems that collect power from the sun.
About the Author
Ronald Kimmons is a professional writer and translator. He has written hundreds of business- and finance-related articles and provides business translation through his Internet site EastwindChinese.com.
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