Florida Solar Incentives: Tax Credits & Rebates Guide (2022)

With energy prices increasing across the country, now is the time to invest in a stable and predictable source of renewable energy 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 all about how your purchase and installation of 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 having to search 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 its value after the addition of 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 they 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 price in the United States. Obviously, 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 end up saving 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 amount of energy that you pull from the grid, thus lowering your utility bills.

People who have invested in a solar energy system in Florida save as much as $23,276 on their energy bills over a 20-year period. With a payback period of just over ten years, you can be saving thousands of dollars per year 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, & Rebates in Florida

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

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax Credit (ITC) is a 26% federal tax credit available for home solar systems purchased and installed by the end of 2022. This is a significant chunk of money taken off their personal 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, and 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 as a result of net metering.

The minimum amount of compensation that 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 for the purchase and installation of 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, there are no incentives 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.

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 their 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 the state of Florida is exempted from the state’s sales tax, which saves you a 6% tax.

Key Takeaways: 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 all the reasons in the world to buy a solar energy system today, especially with variable energy prices around the world and climbing utility bills at home. If you are interested in purchasing, there are many great companies that will help get you set up.

House Method’s Solar Companies Rating 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 all of each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all of 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 100 based on the following criteria:

• Plan Options (30): Do they provide a variety of plan options? We looked at the number of plans each solar energy company offered and the flexibility of adjusting the plan.
• Services offered (20): How many services are offered in each plan? We looked at whether the company manufactures its own solar panels, whether it contracts out installation, and what additional products each company offers.
• Trust (10): What do customers say after their solar panels are installed? Does this company offer a guarantee? We considered how satisfied customers are post-service if the company does what it says it will, BBB accreditation, and service guarantees.
• Prices (10): How reasonable are the costs of the plan or service in comparison to the industry average? We compared the costs of each company to competitors that offer the same solar energy services.
• Unique perks (10): Does the company offer discounts or special services such as financial incentives, rebates, or a useful mobile app? We looked for extras each company offers that set them apart from the competition.
• Customer Service (10): How is the customer experience when contacting the company? We considered the speed of response, weekend/holiday availability, and ease of communication through phone calls, email, and online chat functions.
• Nationwide availability (10): How many states does the company offer its services? Companies that operate nationally and in all zip codes are favored over those with limited availability.