The Federal Energy Policy Act of 2005 created tax credits for solar water heating and solar electric (PV or photovoltaic) systems. Homeowners are eligible for tax credits on qualified solar water heating and photovoltaic systems. Businesses are eligible for similar credits on solar equipment.
Treated like a payment already made toward the taxes you owe, a tax credit provides a bigger financial reward than a tax deduction. You claim the credit when filing your tax return for the year the system is installed. For 2020 business and residential tax credits are for 26% of the cost of the system. In 2021 it will be 22%.
In Florida, solar water heating and PV systems must be installed by an appropriately licensed, state qualified contractor.
The home served by the system does not have to be the taxpayer's principal residence.
Other Federal Business Tax Incentives include Bonus Depreciation and Accelerated Depreciation.
The Sun: Providing Uninterrupted Solar Power for Over 4.6 Billion Years