A recent wave of anti-solar legislation has been sweeping through the country. Florida is the latest state to pass a bill that will have a dramatic effect on how viable solar installations are for the average homeowner.
So what can Florida’s contractors expect the market to look like after these changes take hold? We discuss the details below.
Despite the public’s opposition, the state legislature passed House Bill 741 in early March. This is a proposal to shrink down net metering rates and create the opportunity for utility companies to bill solar customers additional fees.
The original terms were that, once going into effect in 2023, solar customers would have seen a major cut to their rebate overnight, dropping by 50% within the first 4 years. Florida’s solar contractors would be given little time to adapt to the new circumstances by updating their offerings and business models.
Naturally, the bill’s passing was met with backlash. This fortunately prompted a revision of the bill’s terms, which will make the rate reduction more gradual. While this is still a loss for solar customers and contractors, the change will at least not be such a shock.
The updated terms of HB 741 will now set a 25% rate reduction starting in 2024. The plan will taper the reductions, ending at the “avoided rate cost” in 2029, 6 years later than what was scheduled in the original timeline. There is also a provision for customers to be grandfathered in on whatever net metering rate was in place at the time of their installation, lasting 20 years.
While the application of additional fees could not be eliminated from the bill, the revision did manage to insert stipulations that any attempt for utilities to add charges would have to first be approved by public stakeholders. Florida’s citizens will be able to make their voice heard and stop such charges from going into effect.
The revisions to the bill certainly help to maintain some of the incentives for Florida’s homeowners to go solar in the next few years. However, the declining net metering rates will make it difficult for many to afford an installation. As homeowners evaluate the payoff they can expect, too many will find that the incentives aren’t strong enough for the investment to make sense.
If you’re a Florida contractor, you can expect to see a gradual dip in leads, especially those that convert into paying customers. It’s time to start planning how you’ll obtain enough sales after the changes take hold, and how to make the most of this short period before they do.
When customers become scarce, Grid Freedom can help you lock down appointments with homeowners who have been hand picked for their ability and readiness to go solar. Our agency attracts and screens leads via an intensive process with the most stringent quality controls.
You get exclusive access to as many customers as you need, allowing you to avoid down periods and even ramp up earnings for your company safety net. There are no quantity requirements or contracts, so you’ll have complete flexibility to source according to your changing circumstances.
We’re here to help Florida’s contractors stay in business and stay profitable. Our expert agents can be counted on to provide a dependable supply of sale-ready leads for years to come.