Florida Wind Rebates

Wind Energy-Related Legislation and Loan programs in Florida 

According to 25-6.065, F.A.C. enacted in March 2008, the Florida Public Service Commission started net metering and interconnection for all the renewable energy systems with a capacity of 2 MW. The PSC is entitled to set all the rules and regulation for this net metering policy. And these set of rules exclusively apply to state's investor owned utilities. Electric co-operatives and municipal co-operatives do not come under this policy. All the customers who generate electricity using one of the following technologies can avail the facility of net metering - wind energy, solar energy, hydroelectric power, geothermal energy etc. if the customer is using net metering then his net excess generation (NEG) will be carried forward to his next bill for a time period of 12 months. NEG is carried forward at the utilities' retail rate as a kilowatt-hour credit. If NEG is remaining at the end of the 12 month period then it will be paid by the utility. The System owner will hold the rights of Renewable energy credits (RECs). But RECs can be sold back to the utility by the customer. PSC hasn't stated any capacity limit for the net metered systems. All information related to the renewable energy system must be filed with PSC. It includes the total energy delivered to and generated from the customers and the total payment made to the interconnected customers. According to H.B. 7135 in June 2008, PSC received the authority to adopt March 2008 rules for interconnected and net metered utilities. A standard interconnection agreement and net metering program for customer owned renewable generation was developed by the municipal utilities and electric cooperatives. Though municipal utilities and electric cooperatives need to file annual report with PSC, it doesn't have any direct authority above the utilities.

According to Modified Accelerated Cost-Recovery System (MACRS) federal government has enabled recovery of investments in property. It can be done through depreciation deductions. A set of class lives for various properties has been declared by MACRS. It is in the range of 3 to 50 years. During this time period the property can be depreciated. According to 26 USC § 168, the eligible 5 year property under energy Investment Tax Credit (ITC) includes - solar electric and thermal technologies, combined heat and power and also wind energy. Large wind facilities are also considered as eligible technology under this provision of ITC. This 5 year plan for wind and solar energy has been in effect since 1986. Under the federal Economic Stimulus Act of 2008 in February 2008, 50% bonus depreciation was added for all the eligible renewable -energy systems which are in service since 2008. Normally to be qualified for this depreciation certain criterion must be met by the project involved. These are - the acquisition of the property must have taken place during the year of 2008 or 2009, it must be in service since 2008 and it must have a recovery period of less than 20 years. If the property satisfies all of these, 50% of the adjusted basis can be deducted in the 2008 or 2009 and the rest will be depreciated over ordinary schedule.

According to Fla. Stat. § 220.193, Florida renewable energy production credit was introduced to encourage the use of renewable energy in Florida. It helped increasing the number of facilities that use renewable energy as their main source of energy. All expanded facilities that increase its electrical production and sale by more than 5 percent are eligible for this credit. A facility which is in service after May 2006 will be provided this credit. According to this tax credit, annually a taxpayer will receive this credit based on his production and sale of electricity from a new or expanded Florida renewable energy facility. If the facility owned by the taxpayer is a new one then the credit will be based on the taxpayer's total electric production. On the other hand if it is expanded facility then the credit will be decided based on the increased electric production after May 2006. The amount is capped at $0.01 per kWh of electricity produced or sold by the taxpayer to an unrelated third party during that tax year. For availing this credit, the taxpayer first must apply to the Department of revenue by February 1 of each year. Department of revenue will consult with the PSC to come up with an application form. If the total amount of credits in one year exceeds $5 million then each applicant will be allotted a prorated amount based on his increased sale and production. In case the allotted credits are not used during one year, then it can be carried forward to the subsequent next year until 5 years.

In order to promote environmentally sensitive design and construction Miami-Dade County implemented a program to expedite the review and approval of permit applications for green buildings. Here green building means one whole design, operation promote and construction promoting the preservation of resources and environmentally sensitive constructive practices, systems and materials. For determining whether the building is green building or not, the building official will rely on the review and evaluation by the recognized environmental rating agencies like Florida Green Building Coalition, the National Home Builder Association and the U.S. Green Building Council.

According to Fla. Stat. § 196.175 enacted in June 2008, an expired Renewable Energy Property Tax Exemption in the year of 1990 was revived. According to this exemption any real property which is improved by installation of renewable energy source device and operated will be entitled to property tax exemption. Te exemption will be given in the amount of the original cost of the device and also the installation cost. But the total amount should exclude any sort of cost occurred due to the removal or improvement of previous existing property during the installation process. If the exemption was filed in the month of January, then during the next 12 moth time period the tax will be exempted for fully operational devices. If the device was operational for only a portion of that period then the amount should be reduced in a proportional manner. This exemption cannot be granted for a period of more than 10 years and the device must not be installed before January 2009.

According to Fla. Stat. § 377.804 enacted in June 2006, Renewable Energy and Energy-Efficient Technologies Grants Program was started in order to promote the demonstration, commercialization, research and development projects using renewable energy technologies and also other innovative technologies significantly increasing energy efficiency for vehicles and commercial buildings. Under this matching grants program any of the following project is eligible to apply for - established companies in the State, universities and colleges in the state, municipalities and county governments, non-profit organizations, utilities located and operating within the state etc. Various factors will determine the approval of the grant of fund. A project stimulating in-state capital investment and economic development in rural areas will be given preference and also the project should produce more job availabilities and future development of commercial market for renewable energy technologies. The project should also incorporate an innovative new technology or an innovative application of existing technology. To evaluate various project proposals the Commission may take help from other external organization like Enterprise Florida Inc and also state universities. It may also solicit expertise of other public and private entities.