Updated Jan 10, 2023
Updated Jan 10, 2023
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With energy prices increasing across the country, now is the time to invest in a stable and predictable renewable energy source like solar. By installing solar panels on your roof, especially in a sunny climate like Florida, you can produce your own electricity at home and minimize your utility expenses.
After the initial installation costs, a solar energy system can save you thousands of dollars per year. Plus, federal, state, and local incentives exist to help lower the cost of your purchase and help you become a producer of solar energy sooner.
For these reasons and more, it is a great time to buy solar panels in Florida. Keep reading to learn how purchasing and installing solar panels in Florida can be made more financially accessible.
As the third-ranked state in the country for solar installations, Florida is a great place to invest in solar. Florida’s warm, sunny weather makes it an excellent environment for solar energy production. Florida averages 237 sunny days per year, making it one of the sunniest states in the United States. When you compare this number to the American average of 205 sunny days per year, Florida appears well-positioned to produce large amounts of solar power.
Instead of searching for the one solar provider in a town hours away, as may be the case in some states, most large towns in Florida will have businesses ready to sell and install photovoltaic systems (PV). With many statewide financial and tax incentives available for purchasers of PV systems, it is no wonder Floridians love solar.
Finally, solar panels can dramatically increase your home’s value. According to Zillow, the average home experiences a 4.1% increase in value after adding a solar power system. In Florida, the average home value increase from solar panels will be close to $9,454.
Sold on solar for your home? Get a free quote from local solar installers.
The average total cost of solar installations in Florida is $12,650 for a 5-kilowatt (kW) system. On a cost-per-watt basis, solar panel installation in Florida is $2.53. These costs have come down significantly in recent years and are well below the American average of $3.03 per watt.
This difference equates to an average price in Florida that is 13% lower than the average in the United States. If you purchase a larger system (more watts), your system costs will increase in addition to your energy production. With energy bills increasing amid high oil and gas prices, the relative cost of solar is bound to decline further.
Although purchasing and installing solar panels comes with a steep up-front cost, you will ultimately save lots of money per year, thanks to the electricity your system produces. You will save money because when solar panels produce electricity for your home, they reduce the energy you pull from the grid, thus lowering your utility bills.
People who have invested in a solar energy system in Florida have saved as much as $23,276 on their energy bills over 20 years. With a payback period of just over ten years, you can save thousands of dollars annually in almost half a decade.
Over the 20- to 25-year lifetime of your photovoltaic (PV) equipment, you will experience loads of savings.
There are several public and private incentives in Florida that help you save on your purchase of solar panels:
Incentive | Summary | End Date |
Federal Solar Tax Credit (ITC) | Florida residents can take advantage of the Federal Solar Tax Credit and get a discount of 30% applied to their tax returns. | 2032 |
Florida Solar Property Tax Exemption | Florida will exempt property taxes on the added value to your home that comes with installing a solar energy system. | None |
Florida Solar Sales Tax Exemption | The purchase of solar energy systems in Florida is exempted from the state’s sales tax, which saves you a 6% tax. | None |
Net Metering | Net metering allows Florida homeowners that create excess energy to use it as a credit on their next electric bill. All energy providers are required to offer this option to homeowners. | None |
Local Utility Rebates | Specific counties and utility companies offer rebate programs to purchase and install solar energy systems. | None |
USDA REAP GRANT | REAP assists agricultural producers and rural small businesses to reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligibility for the REAP program depends on you being an agricultural producer, with at least 50 percent of your gross income coming from agricultural operations and small businesses in eligible rural areas. | None |
Florida Renewable Energy Tax Incentives | Although it no longer accepts applicants, the Florida Renewable Energy Tax Incentives program provided financial assistance to businesses investing in solar. | No Longer Available |
The Federal Solar Investment Tax Credit (ITC) is a 30% federal tax credit available for home solar systems purchased and installed by the end of 2032. This is a significant chunk of money taken off their income taxes. As well, the ITC has expanded the country’s solar industry. It has helped create hundreds of thousands of jobs while bringing billions of dollars into the economy since it was enacted in 2006.
Florida will exempt property taxes on the added value to your home that comes with installing a solar energy system. This is another excellent reason to invest in solar!
Electricity companies in Florida have all adopted net energy metering, which is a policy that ensures your solar panels will be connected to the public-utility power grid. That surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid due to net metering.
The minimum compensation you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, it remains hugely beneficial for owners of solar energy systems.
Specific counties and utility companies offer rebate programs to purchase and install solar energy systems. Check out this database for more information regarding your specific circumstances.
Unfortunately, no incentives are available specifically for nonprofits and businesses in Florida. However, some private and local incentive programs may exist depending on where you live and which utility company you use.
However, non-tax-exempt businesses are still eligible for a 30% tax credit for solar power systems installed on commercial properties.
The United States Department of Agriculture (USDA) has launched a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses lower energy costs and consumption by financing loans and grant funding to purchase and install renewable energy systems. You are eligible to participate in the REAP program if you are an agricultural producer with at least 50 percent of your gross income coming from agricultural operations or a small business in eligible rural areas.
The purchase of solar energy systems in Florida is exempted from the state’s sales tax, which saves you a 6% tax.
Florida is one of the better places in the United States to invest in residential, commercial, or industrial solar energy systems. With lots of sunny weather to power your systems, what more could you ask for? With a range of financial and tax incentives available and more that are likely on their way, purchasing solar panels has never been more cost-effective. You have plenty of reasons to buy a solar energy system today, especially with variable energy prices and climbing utility bills at home. If you are interested in purchasing, many great companies will help set you up.
Yes, you should invest in solar energy in Florida. Solar will save you a load of money on your utility bills and help reduce your production of emissions and your carbon footprint. Plus, various federal, state, and local financial incentives are available in Florida to purchase solar panels accessible to anyone.
Homeowners who have invested in a solar energy system in Florida have saved as much as $23,276 on their energy bills over 20 years. With a payback period of just over ten years, you can save thousands of dollars annually in almost half a decade. Over the 20 to 25-year lifetime of your photovoltaic (PV) equipment, you will experience loads of savings.
The average cost of solar panels and installations in Florida is $12,650 for a 5-kilowatt (kW) system. On a cost-per-watt basis, solar panel installation in Florida is $2.53. These costs have come down significantly in recent years and are well below the American average of $3.03 per watt. This difference equates to an average price in Florida that is 13% lower than the average in the United States.
No, you can’t get solar panels for free. Still, Floridians are fortunate to have the support of numerous federal, state, and local financial incentives to help minimize the costs associated with purchasing a new solar energy system.
There are many federal, state, and local financial incentives for purchasers of solar energy systems in Texas. These include the federal government’s Solar Investment Tax Credit (ITC), the Texas Property Tax Exemption, and many local and private incentives.
There is enough solar installed in Florida to power over 100,000 homes, and solar accounts for 1% of the state’s electricity production.
Florida will exempt property taxes on the added value to your home that comes with installing a solar energy system. This is another excellent reason to invest in solar!
Florida taxpayers can write off many costs associated with purchasing new solar panel systems. For more information about incentive programs, check out this database online. Both homeowners and business owners should look into the solar ITC, which was extended through the end of 2032. This program provides a tax rebate of 30% of the total value of any solar system installed.
At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.
Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all the solar energy companies on the market so you can have the information you need to make the best choice for your home.
We developed a formula to objectively determine the best solar energy companies and give each a score out of 10 based on the following criteria:
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