Why Florida commercial solar is a load-matching problem
Florida does not have a state renewable portfolio incentive like Massachusetts SMART, and retail rates at the large investor-owned utilities are lower than in New England. What Florida has is a long, hot daytime load curve. A hotel or resort runs chillers, kitchen equipment, laundry, and pool systems through the same hours an array produces, and a distribution warehouse or cold storage building runs refrigeration all afternoon. When production lands on top of consumption, almost every kilowatt-hour offsets a retail purchase instead of being exported.
That is why we size Florida systems to the interval load profile rather than to the maximum the roof can hold. Exported energy is credited under the PSC rule, but any excess left at the end of the year is paid out at the utility's avoided-cost (as-available) rate, which is well below retail. Oversizing looks good on a production report and poorly in an IRR model.
Where the value comes from
- Energy offset. Behind-the-meter consumption at the retail energy rate, which is the bulk of the benefit for most hospitality and industrial accounts.
- Demand charges, partially. Solar alone rarely reduces billed demand reliably, because a cloud at the wrong 15 or 30 minutes resets the peak. Storage is what makes demand savings dependable. See how peak demand charges are reduced.
- Federal tax benefits. The Section 48E credit and 5-year MACRS with 100% bonus depreciation, covered below.
- State tax treatment. Sales tax exemption on qualifying solar equipment and an 80% property tax exemption on renewable energy source devices.
- Resilience. For a hotel, keeping elevators, life safety, refrigeration, and front desk systems up after a storm has a value that does not show on the utility bill.