Rebates, tax credits help make solar energy more affordable in Florida

Brian and Emily O'Mahoney believe firmly in solar energy. Earlier this year,
they invested $57,000 in sun-powered equipment for their house in The Shores
in Jupiter. That included a solar water heater, a solar electricity
generating system with 26 photovoltaic panels and a solar-powered pool pump.

Granted, most people aren't willing to spend that much. But a solar water
heater costs around $5,000 for an average-size house and saves 30 percent of
the typical electric bill. The payback time is about four years. That's how
long it takes to recoup the money spent on the solar in savings on
electricity.

"It's insane not to have a solar water heater," Brian O'Mahoney said. "Our
water heater has been running off the grid since it was put in."

The O'Mahoneys are reaping the benefits in the form of tiny Florida Power &
Light Co. bills this year and for years to come. Their energy usage has
dropped to an average of 29 kilowatt hours a day from 57 kilowatt hours a
day.

Their lowest FPL bill ever was in May, a mere $39. July and August were the
biggest, at $150 and $140. Before Abundant Energy Inc. in Jupiter installed
the solar system, their average bill was about $250 a month for their
2,800-square-foot house.

The O'Mahoneys are slated to receive $30,000 in state and federal rebates
and tax credits, Brian O'Mahoney said.

But for those homeowners tinkering with the idea of going solar now, the
outlook is murkier.

Though this summer Florida received $14.4 million in federal stimulus money
to provide rebates for solar electrical systems and water heaters, the fund
was quickly depleted because of a backup of applications. There's nothing
left.

"That money was already spoken for, due to people in the queue going back to
December 2008," said Bruce Kershner, executive director of Florida Solar
Energy Industries Association in Longwood.

The state had funded the program with $5 million in 2008, and with $3.5
million and $2.5 million in the two prior years.

Even if the legislature doesn't find a way to fund the program further, new
incentive programs are expected to be coming in 2010.

On Dec. 1 the Florida Public Service Commission ordered FPL and the state's
other investor-owned utilities to provide up to $24.5 million in incentives
for solar water heaters and photovoltaic systems. FPL's share is $15 million
a year, beginning in 2010, but the utility has until March to file its
implementation plan.

The program will cost customers, even those who do not participate, an
estimated 18 cents a month, according to the PSC.

In addition, the Governor's Energy Office expects to roll out a $10 million
low-interest loan program, also with federal stimulus funds, for solar water
heaters in 2010.

While people who purchase solar pool heaters don't receive any tax credits,
because it's considered a luxury item, Kershner said the payback for pool
heaters is that people can enjoy their pool more days.

"If you want to maximize use of your pool, figure out the best way to heat
it," Kershner said. "By far, heating with solar is most economical."

Prior to 2006, the state had no rebate programs, and the federal government
offered no solar tax credits. But pool heater installations was what kept
the solar contractors in business, with about 15,000 sold each year.

Kershner cautions consumers looking into purchasing solar equipment to make
sure they hire a licensed contractor by going to www.flaseia.org to see a
list of licensed firms. All the organization's members are licensed,
Kershner said.