Are Solar Panels Worth It in Florida?
Since the cost of electricity is one of the main drivers for installing solar panels, potential customers are always asking, “are solar panels worth it in Florida?” Let us give you some information to help you answer this question for yourself.
Combining the lower cost of solar panels with generous federal incentives, favorable utility programs, and Florida’s Property Assessed Clean Energy financing, going solar in Florida is an even better deal than ever.
What Is the Cost of Florida’s Solar Panels?
As of August 2022, the average cost for solar panels in Florida was $2.58 per watt. A typical 6 kilowatt (kW) solar system will cost $15,660 without any incentives and $10,962 after you claim the 30% tax credit.
Although it is a large sum, once you take into account all the incentives, it will be much less.
Florida’s solar panel costs are lower than the national average of $3.00 per watt for residential solar power systems.
What Solar Incentives Are Offered in Florida?
Florida currently offers solar incentives:
- Solar tax credit (30%)
- Net metering
- Property Assessed Clean Energy (PACE program Florida)
What Is the Florida Solar Tax Credit and How Does It Work?
Florida does not have a state-specific solar tax credit. When people refer to the “Florida solar credit”, they most likely mean the 30% federal investment tax credit (ITC).
This federal incentive is available in all 50 US states. This allows homeowners who are tax-paying to deduct 30% of the cost of their solar system from their income taxes. The federal tax credit gives you a 30% discount on your solar system. You can transfer the balance to the next period if your tax liability is less than 30% of the cost of your solar system. This allows you to save for up to five years.
Are There Any Tax Credits or Rebates Offered in Florida?
Longwood once offered a small rebate program, but it has since ended. Unfortunately, Florida does not offer any other state tax credits or rebates for solar. Rebates are also not available.
The cost of solar energy in Florida has fallen dramatically due to the combination of the existing incentives and the advancements in manufacturing technology.
What Is the Payback Time for a Florida Solar Installation?
While solar energy systems in Florida typically take 10 years to pay off, the payback time can be as short as 5 years. The following factors will affect the time it takes to repay your loan:
- Your total electricity consumption
- Your solar system’s size
- How much power you use during the day
- Your electricity rate plan
You can maximize your savings by reducing your usage. This will allow your solar system to send more energy to the grid than your utility has to pay.
Your solar repayment time will also depend on the time of day that you use the most power. Your solar system will export less energy to the grid if you are at home during peak solar energy production hours. Your utility will pay less in net metering credits if you send less energy to the grid. This will make your electric bills more expensive, even though it is still cheaper than solar.
Go Solar With ESD Solar Today
It is a bit more complicated than the one-size-fits-all approach presented above. The short answer: yes, solar panels are worth it in Florida. And since we’ve done the hard part by crunching the numbers and running the math, you can rest assured that they will save you money before you even make an investment.
Don’t put it off any longer—the sooner you get started with solar, the sooner you’ll see first-hand just how valuable it can be.
If you’re considering going solar, now’s the time to do it. ESD Solar offers some of the best prices in the city. They have a great customer service department (which can be pretty important when installing such a large purchase), and their panels have been proven to produce more efficient electricity than the average panel on the market. Just take a look at what you’ll save in that first year! Contact us today!
