Home > Solar > Florida Solar Incentives: Tax Credits and Rebates Guide (2023)

Florida Solar Incentives: Tax Credits and Rebates Guide (2023)

Updated Jan 10, 2023

Updated Jan 10, 2023

Home > Solar > Florida Solar Incentives: Tax Credits and Rebates Guide (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.

Why Go Solar in Florida?

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.

Florida Solar Cost

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.

How Much Can You Save on Solar in Florida?

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.

The Best Solar Incentives, Tax Credits, and Rebates in Florida

There are several public and private incentives in Florida that help you save on your purchase of solar panels:

IncentiveSummaryEnd 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 ExemptionThe 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 IncentivesAlthough it no longer accepts applicants, the Florida Renewable Energy Tax Incentives program provided financial assistance to businesses investing in solar.No Longer Available  

Federal Solar Investment Tax Credit (ITC)

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 Solar Property Tax Exemption

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 Net Metering

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.

Local Utility Rebates

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.

Commercial Florida Solar Incentives

Solar Incentives for Nonprofits and Businesses in Florida

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.

USDA REAP Grant

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.

State 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.

Final Thoughts: The Best Florida Solar Incentives

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.

Florida Solar Incentives FAQs

Is solar worth it in Florida?

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.

How much will my electricity bill go down with solar in Florida?

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.

How much does it cost for solar panels in Florida?

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.

Can you get solar panels for free in Florida?

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.

What solar rebates are available in Florida?

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.

How many homes in Florida have solar panels?

There is enough solar installed in Florida to power over 100,000 homes, and solar accounts for 1% of the state’s electricity production.

Do solar panels increase property taxes in Florida?

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!

How much can you write off for solar panels on taxes in Florida?

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.

House Method’s Solar Ranking and Review Methodology

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:

  • Services Offered (2.0): What does each solar provider offer as a basic service with any solar installation plan? In-house labor led to companies being ranked higher than those that contracted their labor out to third parties. Similarly, battery installation and panel monitoring were key factors that we looked for in each provider.
  • Warranty Period (2.0): Solar warranties can cover labor, components, or both. The length of these warranty plans is of chief importance. Companies that offer 25-year warranty coverage got our highest score in this category.
  • Other Offerings (2.0): Solar companies that provide secondary services are rated highly. These include obtaining permits to operate (PTO), providing financing and price matching options, and mobile performance tracking options.
  • Company Reputation (1.5): Our main metrics for rating company reputation were BBB accreditation and rating and complaint response rate. These are reliable indicators of quality. Many of our best providers have a 100% complaint response rate.
  • Customer Service (1.5): Availability via phone and online is key for modern home service providers in any niche. Those that offer both, along with clearly posted business hours and in-person estimates, are rated highly.
  • Availability (1.0): Companies with availability in more than 40 states received our highest score in this category. We rated providers with a more limited presence progressively lower, depending on exact reach.

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