The Inflation Reduction Act (IRA) has supercharged solar investment with tax credits, but state regulators hold the key to unlocking its full potential. At 3PLX, we believe aligning state property tax, sales tax, and net metering laws with the IRA is critical to driving residential and commercial solar adoption. States like Florida show how it’s done—offering Third Party Owners (TPOs) a blueprint to deliver leases cheaper than utility bills.
Florida exempts residential solar systems from both sales tax and property tax increases, slashing costs for TPOs. A homeowner leasing a 6 kW system might pay $80/month—less than their $100/month utility bill—thanks to these savings layered on top of the IRA’s 30% Investment Tax Credit (ITC). For commercial installations, Florida eliminates sales tax and provides an 80% property tax abatement, enabling TPOs to offer businesses leases that undercut their $500/month electric bills with payments as low as $400/month.
Here’s what states should prioritize:
- Tax Exemptions: Eliminate sales and property taxes on solar systems to reduce TPO overhead, mirroring Florida’s model.
- Net Metering: Ensure fair compensation for excess solar energy fed back to the grid, boosting lease affordability.
- IRA Synergy: Align policies to maximize the ITC and bonus credits (e.g., 10% for Domestic Content), amplifying savings.
Why it matters:
- Homeowners save immediately, with leases below utility rates driving demand.
- Businesses cut operational costs, freeing capital for growth.
- TPOs and contractors thrive as lower costs spur more installations.
Contrast Florida with states lacking these alignments. In states with full property and sales taxes, a $20,000 commercial system might add $2,000 in taxes, pushing lease payments higher than utility bills and stalling adoption. Florida’s approach proves tax relief, paired with robust net metering, creates a win-win: TPOs offer competitive leases, customers save, and solar grows.
“State regulators can turbocharge the IRA’s impact,” said JR Mejia, CEO of 3PLX. “Florida’s tax breaks show how policy alignment lets TPOs deliver real savings—other states should take note. Reach us at 561.800.3559 or info@3plx.net to discuss this further.”
Regulators must act now. With energy demand rising, aligned policies can make solar the default choice for homes and businesses, leveraging the IRA to build a cleaner, cheaper energy future.
