Florida is an excellent state for transitioning to solar energy, boasting over 370 solar companies and nearly 3,000 annual hours of sunlight. This guide aims to provide a comprehensive overview of the average cost of solar panel installation in Florida.
Solar Panel Cost in Florida: Local Installation Prices
The average cost of solar panels is $2.57/watt in Florida, and a 5-kilowatt system amounts to $15,420. Here is a breakdown of the average solar panel costs in Florida, categorized by system size. The price has been adjusted following the application of the federal tax credit, which provides a 30% deduction from your installation expenses.
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What Affects the Cost of Solar Panels in Florida?
The cost of solar panels is influenced by many factors. These include local legislation and your energy requirements. Below we’ve listed the most critical factors.
- Net Metering: You can transfer excess electricity from your solar power system to the grid. This energy is deducted from your next bill by the utility company at retail rates. Florida investor-owned utility companies offer net metering, including Florida Power & Light (FLPL), Gulf Power (DUKE Energy), and Tampa Electric Company.
- Payment Method: Most solar companies provide at least two payment methods: buying your solar system upfront, signing a solar lease, or taking out a loan. Power purchase agreements (PPAs) are not permitted in Florida. The most cost-effective way to pay for a system is upfront. You avoid interest rates, and you can take advantage of tax incentives. Solar leases are less expensive up front, but you can’t take advantage of cost-saving incentives because you don’t own the system.
- Type of Solar Panel: Monocrystalline panels are the most common option for residential installation because of their high performance rates. They are more expensive, however than other types. The polycrystalline panels are cheaper but less efficient. The thin-film panels are the most affordable, but they are only suitable for small projects such as converting an RV or shed to solar power.
- Tax Credits for Solar Panels: Tax credits for solar panels provide financial relief. Below you can find out more about the Florida incentives.
- System Size: The number of solar panels you need depends on your energy requirements. The average Floridian installs 5 kW of solar power. If you assume that standard 250-watt solar panels are used, this equates to 20 panels costing approximately $11,000. The cost of larger systems is higher because they need more panels and require higher installation costs.
Solar Incentives in Florida
Florida offers several tax incentives to reduce the cost of installing solar panels. The Federal Solar Investment Tax Credit is also available to homeowners. The tax credit is equal to 30% of your total solar panel installation cost. In 2033, the rate will drop to 26%.
- Property Tax Abatement for Renewable Energy Property: Florida offers a 100 percent tax exemption on the increased value of solar energy systems for residential homes and an 80% exemption from property taxes for non-residential installations. This incentive will be in effect until December 31, 2037.
- Exemption From Florida Sales Tax on Solar Equipment and CHP: The exemption removes Florida’s 6 percent sales tax. In 2005, it was made permanent.
Best Solar Installation Companies in Florida
There are numerous solar installers in Florida, but we specifically recommend ESD Solar. The company is dedicated to optimizing solar panel efficiency and is renowned for its top-notch customer service and prompt installations. For Florida residents, ESD Solar presents a promising choice. With decades of knowledge and experience in the solar industry, the company also provides some of the most efficient panels currently available.
The Bottom Line: Solar Panel Cost in Florida
The average cost of a solar panel system in Florida is around $15,000. This upfront investment might seem substantial at first glance, but it’s important to view it as a long-term strategy rather than an immediate expense. A solar panel system is not only an environmentally friendly option but also a financially savvy decision that can lead to substantial savings over time.
So, whether you’re motivated by reducing your carbon footprint, saving money, or a combination of both, exploring the world of solar panels is a step in the right direction. Embrace the power of the sun and join the movement towards a cleaner and more sustainable energy landscape.
Frequently Asked Questions About Solar Costs in Florida
Is It Worth Going Solar in Florida?
In Florida, it is worth it to go solar. Florida is one of the sunniest states in the nation and offers tax incentives for solar panels and net metering to maximize savings.
How Many Solar Panels Are Needed to Power a House in Florida?
The average home requires between 20 and 30 solar panels. The number of solar panels you need depends on your roof and the amount of energy used each month.
How Long Does It Take for a Solar Power System to Pay For Itself?
Solar power systems pay for themselves in six to ten years. Payback periods vary depending on local electricity rates, energy consumption, and payment options.
Do Solar Panels Increase Your Property Taxes in Florida?
Solar panels do not increase Florida property taxes. State law currently exempts residential solar systems from property taxes.
How Long Do Solar Panels Last?
Solar panels typically last between 25 and 30 years.
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