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.

Photo by Richard Graulich - Palm Beach Post

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.

In Florida, the rebate program is based on a 4 year statute which is set to expire in June 2010 offers one of the highest rebate amounts in the country $4/Watt DC capped at $20,000 for residential and $100,000 for commercial systems. Rebate payout availability is based on funds being available for the program has been so successful it has run out of money each fiscal year since it was created. The state has had to request funding dollars from the state budget and the ARRA Stimulus funds just to pay off the back log. The program is still currently accepting applications however, home owners only have until the end of June 2010 to have their system installed to be eligible for the $4.00 /Watt DC incentive.

Just like these other states, it is likely Florida will make provisions to reduce the total amount paid per installed Watt. Places like California have a declining rebate structure based on total watts installed in the state already built into their program. Additionally, many states including leaders like California and New Jersey base their rebate amount on AC production. This means your installer has to design the system the best, provide the best equipment and use industry standard tools to prove the amount of energy produced is accurate in order to get the highest rebate amount. This ensures the State’s money and that of the rate payers funding the program is not wasted on poorly installed systems.

Floridians may want to act now to be eligible for the higher rebate amount or look forward to their legislature to slash rebate amounts as well as impose higher installation standards in order to qualify for their rebates. Combine these facts with the current rate hearings for local utility rate increases, the future of solar energy is looking pretty bright.