Are solar panels in Florida worth it? Your expert savings guide for 2022
Individual panel prices
Prices of DIY kits
Installed system prices
The Sunshine State has seen a recent boom in solar panel installations as more homeowners become aware of the huge savings solar energy offers.
Solar’s value proposition has been driven up by the declining cost of solar panels, which are now available in Florida at an average cost of just $2.58 per watt before incentives.
Combine the reduced cost of solar panels with generous federal incentives, favorable utility programs, and Florida’s Property Assessed Clean Energy (PACE) financing, and going solar in Florida is a better deal than ever before.
The average cost of solar panels in Florida is $2.58 per watt as of March 2022. This puts a typical 6 kW solar system at $15,660 before claiming any incentives, and at $11,442 after claiming the 26% solar tax credit.
While that’s a lot of money, you will actually end up paying a lot less once all incentives are factored in.
Solar panel costs in Florida are also less than the national average for residential solar power systems, which is currently $3.00 per watt.
Learn more: Florida solar panel cost data
Solar incentives currently available in Florida:
When people refer to the ‘Florida solar tax credit,’ they actually mean the 26% solar tax credit, known formally as the federal investment tax credit (ITC).
This is actually a federal incentive available in all 50 states. It allows tax-paying homeowners to claim 26% of their solar system’s cost as a deduction on their income taxes. In other words, the federal tax credit offers you a 26% discount on your solar system. If your tax liability is less than 26% of your solar system’s cost, you can roll the remaining balance over to the next period for up to 10 years.
After purchasing your solar system, fill out Form 5695 when you file your taxes. Here is a guide you can follow on how to claim the solar tax credit.
Net metering is a solar incentive offered in Florida that allows you to sell your surplus solar electricity to the electricity grid at the full retail rate.
Why net metering is valuable in Florida: With all the sunshine in Florida, it’s very likely that at times, your solar system will produce too much energy for your home. This excess power is exported to the grid, and net metering means your utility must compensate you at the rate you pay for power. Every 1 kilowatt hour (kWh) of power sent to the grid is 1 kWh off of your electricity bill; this is how solar pays for itself.
Provided you size your system correctly, you should be able to wipe out all or at least most of your electric bill.
Learn more: What is net metering and how does it work?
Yes - solar power systems in Florida are exempt from property tax and sales tax.
The sales tax exemption represents a savings of 6% on the upfront cost of a rooftop solar system.
Meanwhile, the property tax exemption means ongoing savings on your annual property tax bill. This is especially beneficial considering that when you go solar - be it on an existing roof or new home - you will see a boost to your home’s selling price.
On top of the energy savings, this is a great selling point when listing your home on the real estate market.
The city of Longwood used to offer a small rebate program but this program has now expired. Sadly, there’s no other state tax credit or rebate for solar in Florida. The same goes for rebates.
Luckily, the dual impact of existing incentives and advancements in manufacturing technology means that the cost of solar power in Florida has dramatically decreased for the average homeowner.
The state of Florida allows for localities to offer loans that are paid for through a property tax increase to your local government.
PACE loans can finance not just solar systems, but most energy efficiency upgrades, as well. The benefit of PACE is that you can start saving money on your utility bills from Day 1, and if you choose to move, you can pass the remaining balance on the loan to the next property owner.
This is why PACE is different from regular solar loans. The new owner can elect to keep paying the loan or have the equipment removed, although it’d be unwise to do so, as the savings from solar would far outweigh the loan payments.
One option is to check with your local county to see which PACE programs are offered in your area.
The other, easier option is to talk to your local solar installer. They can advise you about your options and help you sort out the required paperwork.
Provided you don’t have overdue taxes, mortgage payments, or are part of a bankruptcy filing, you should have no trouble qualifying for PACE.
Installing a properly sized renewable energy system in Florida can save you up to $80,000 in avoided energy costs. This is about average for the United States.
The example below shows the potential solar savings for an average home in Hardee County, Florida.
Solar system costs and savings for an average home in Hardee County, with a monthly utility bill of $169. You can see an estimate tailored for your home by entering your details into the Florida solar savings calculator below.
Your exact savings will depend on many factors, including solar panel costs, utility company rates, and the climate where you live. Above all, your total savings will depend on your energy consumption - the more electricity your household consumes, the more you will save with solar panels.
To get a solar savings estimate tailored to your location and your circumstances, enter your address into the Florida solar savings calculator below.
Solar energy systems in Florida usually take about 10 years to pay for themselves, but the payback period can also be as quick as just 5 years. Some important factors that affect your repayment time are:
To maximize your savings, you want to cut down on your usage as much as possible - this will mean your solar system sends more energy to the grid that your utility must pay you for.
The time of day you use the most power is also a major factor in your solar repayment time. If you’re at home during the day when your solar system is producing the most energy it will mean your solar system exports less energy to the grid. The less energy sent to the grid, the less your utility is required to pay you in net metering credits. Although still cheaper than without solar, this will increase your electric bills.
With products such as the Tesla Powerwall 2 gaining large media attention, you may be wondering whether or not batteries are right for you.
The truth is that since net metering is available in Florida, the significant upfront investment in a battery storage solution isn’t worth it. Since net metering ‘stores’ the monetary value of your excess electricity — for no additional upfront investment — batteries just aren’t worth it.
That said, there are two cities, Orlando and Jacksonville, which offer rebates for solar battery backup systems. You can get up to $2,000 back in Orlando, and up to $2,000 in Jacksonville. Here are more details of each program:
Most solar panel manufacturers that are at least semi-reputable will test their panels in 140 mph (i.e hurricane-like) winds. It is extremely unlikely that your solar panels will add to the danger, or suffer damage, during most extreme weather events.
As for hail storms, this shouldn’t be a concern of yours either. Solar panels are legally required to comply with international standard IEC61215. Under these conditions, a solar panel must be able to withstand a hit from a ball of hail 25mm (about 1 inch) in diameter at speeds of 51.4 mph. Some premium brands of solar panels are rated to withstand hits from even larger balls of hail at even higher speeds.