Do Florida Solar Incentives Work? Solar Panel Cost in Florida, Rebates Credits

The switch to solar power in a residential setting has a number of advantages, especially in a state that can frequently lose grid power due to severe weather conditions.

Whereas at one stage the cost of solar panels in Florida was beyond the reach of most homeowners, federal and state programs are incentivizing many to take a second glance at the power of solar energy.

This guide outlines the Florida solar incentives available for residents who want to lower the cost of solar panels in Florida and unplug from the grid.

Related Reading: Design Of Solar Panel System: See How It Actually Works (Photovoltaic System)

Cost of Solar Panels in Florida: Is Solar Worth It in Florida? (Solar Panel Cost in Florida)

Florida is one of the best states for you to invest in solar energy, boasting between 230-270 days of sunshine each year.

By opting for solar energy, attractive programs become available to reveal how this clean energy source can save on your electricity bills and offset the cost of solar panels in Florida.

Thanks to the incredible weather and an array of great incentives for going solar, homeowners such as you can expect your newly installed system to pay for itself within 6 to 12 years. In some cases, even sooner.

The state boasts some amazing rebate programs, as well as exempting property taxes on any added value generated from home solar and battery systems.

This means if you ever decide to sell your Florida home, all its energy savings can follow you to your next property!

Investing in a solar system in Florida is definitely worth it to go green, and to save the planet from too many carbon emissions generated from other energy-producing sources.

Cost of Solar Panels in Florida: How Much Are Solar Panels in Florida After the Federal Solar Tax Credit?

In Florida, electricity prices are high, and expensive utility bills are still a concern. Considering that there is so much free solar energy available every day, this shouldn’t be the case.

Solar energy can easily reduce those costs. And because of the many programs such as the federal solar tax credit and other state and local incentives, the cost to install solar panels has been placed within the reach of more consumers.

What may be causing you to hesitate is probably the general cost of a home solar system in the Sunshine State,¹ which currently stands at between $10,00 0 to $15,000.

In some cases, with fitting included, the top price can be double that. Now, depending on the firm, and the size of your solar system energy needs, the price per watt can change, and this can affect the value of your solar array system but is in the interest of the company to make their offer as irresistible as possible, if they want your business, that is.

With no money down and a promise of 12 months of free energy, some trustworthy local installers make the purchasing process even more tempting.

With a little bit of research, you will discover that the cost of a solar system can be further offset by a variety of financing options available through local companies and the state’s solar rebate programs.

You will find that the Database of State Incentives for Renewables & Efficiency is a great resource to explore all of these opportunities, as well as your utility company’s website.

On it, there is a section that explains the benefits of their net metering program, and how it can work for you.

Essentially, the program permits subscribers to send any excess power generated by a solar energy system back to the grid in exchange for credits on their next utility bill.

It is highly recommended that you at least consider this option as the savings may well surprise you.

Florida’s utility networks and some electric cooperatives offer this benefit, and they should be explored first and foremost.

Local Solar Rebates Florida, Solar Rebates From the Government: Florida Solar Incentives

A little help can go a long way.

The federal solar investment credit automatically discounts 30% from new solar investments and there are a variety of Florida solar incentives that can help offset your installation costs even more.

These include sales and property tax exemptions and rebate programs that should be at the top of your to-do list.

Local Rebates

Many of these local incentives take the form of loans, grants, or tax credits that will apply to you, and can be claimed at the time of purchase or on your tax returns.

For example, if you are eligible for the Boynton Beach Energy Edge rebate program, a possible rebate of $1,500 can be received to go towards the expense of installing a solar system that is 5kW or larger.

Panels of these sizes generally have an efficiency output of 17.5%. Yet new technologies emerging all the time will increase the efficiency and voltage output to even higher levels,² which will mean more power for your home.

Other local incentives include the Ocala Utility Services program and the Palm Beach County PACE financing program. One will give you the chance to claim a $450 rebate for solar water heating, while the other the choice of whether to use a low-interest loan to cover your Florida solar bill installation costs.

Tax Credits

Florida is a great state for you to go solar for several reasons. An exemption from the state’s sales tax is a great place for you to start receiving aid with an immediate 6% saving.

On top of that the federal Solar Investment Tax Credit will apply a 30% credit to you that will cover the costs of the equipment, labor costs, and even energy storage devices like batteries; this credit comes in the form of a deduction to be claimed on your federal income tax return.

First of all, all home solar energy systems are exempt from state sales tax, saving you 6% right off the bat. The state also realizes that homes with solar energy are worth more, and exempts this value from additional property taxes.

If you are a homeowning resident in Orlando, you have the possibility to apply for a $2,000 rebate from Orlando OUC for battery installation which has a usable capacity of 8kWh or more and also a 10-year defect warranty.

The city of Dunedin offers a similar grants program with $2,500 up for grabs. No matter which city you live in, be sure to check with local government websites and trusted references or ask your solar installer as they keep track of all local incentives that are sometimes prone to changes, and you don’t want to miss out.

Net Metering

It is more than likely that your local area suppliers and utility grid will enable you to have access to other rebate programs. In Boynton Beach, for example, the Energy Edge rebate program offers up to $1,500 in solar incentives for homeowners who install energy-efficient improvements.

Other localities have utility-administered loans that offer low rates to encourage home solar installation.

Net metering is also an excellent option that can also boost the value of your solar equipment. This policy credits you for any excess electricity your system produces and allows you to sell any unused power back to the grid.

Many states have great net metering incentives that will significantly shorten your solar panel payback period.

Florida also recognizes that if your home has solar panels installed it will be worth more than those without, and Orlando Utilities offers a $2,000 rebate for solar battery installations on residential properties.

If you have an account with and use one of the OUC-approved batteries with an energy capacity of 8kWh,³ you will be eligible for this program that also has a 10-year defective warranty.

Exemptions

Depending on where you live, you may qualify for local exemptions or credits that can reduce your solar energy installation costs. For example, you as a Florida resident, can benefit from a state sales tax exemption and net metering.

In order to have control over your utility bills, net metering will enable you to send whatever excess electricity is produced by your solar panels is channeled back to the grid – and you get credited for it.

This credit can be carried over for up to 12 months before it resets on the anniversary of the annual payment cycle.

Additionally, you are entitled to remove the value added by your solar panels from your taxable assessment because of the state’s property tax abatement exemption for solar electricity. There is an expiration date of this incentive until 2037, but until then you can continue to benefit from it.

On top of that, Orlando Utilities provides a refund of 50% of the cost of the battery system, under the condition it comes with a warranty of at least 10 years.

Other utility programs offer smaller rebates so always enquire at your local utility company to see what is available in your area.

Florida Solar Panel Installation Cost (Cost of Solar Panels in Florida)

The size of your home and your electricity needs are important to determine how much you should expect your system to cost.

The larger your home, the more panels you will need to meet your yearly energy demand.

Related Reading: How Much Do Solar Panels Cost In Your State? (Hidden Fees, Tax Credits)

A larger system will also produce more energy, which results in a lower average cost per watt, which is good.

Solar panel prices depend on the type of cells you choose, as well as the inverter that converts the solar energy into electricity for your home.

Polycrystalline and thin-film cells are the cheapest options, while monocrystalline solar panels offer better performance and durability.⁴

It can’t hurt to consider all the different types along with any additional labor fees associated with different varieties before making your final decision.

Your roof pitch and height are also significant cost factors that will impact how easy or hard it will be to install your solar panels. Typically, steeper roofs are more challenging to work on and will attract higher labor costs and require more expensive racking.

Incredibly, the price of your solar panel system can vary from city to city by as much as 20%. For example, Miami has a higher cost of living than the national average and its electricity prices are also higher.

Combine other expensive overheads associated with the city, and they soon all contribute to driving up the overall cost of solar panels Miami and their components.

Whether you are looking to reduce your utility bills, increase the resale value of your home or reduce your carbon footprint, going solar is an excellent option for Floridians.

The initial cost of a solar energy system can seem intimidating, but it is worth your time and energy to explore the available incentives and financing options before signing on the dotted line.

Florida No Cost Solar Program and Free Solar Panels Florida

If you want to save money on your energy bills, reduce your environmental impact, and become more resilient against future price increases, going solar may be the right choice for you.

If, however, contributing any funds towards the project is unfeasible, discovering how to get solar panels for free may be an option. After all, solar power in Florida should be available to everyone.

But is it really possible for you to get a solar system and the installation for free?

Quite possibly.

The first thing you have to do is to sign up for a Power Purchase Agreement (PPA).

If your savings won’t stretch as far as you would like to pay for this new system, it is possible to enlist the aid of this program with no deposit.

Look at it as a tool that will enable you to either fully or partially fund the project so you can start generating renewable energy on your property quickly.

A PPA is similar to a lease but with distinctly better terms, allowing you to transfer the ownership of your solar power system at the end of the term for a small fee, as well as protect yourself against rising electricity rates immediately.

Even if saving up and then installing this sustainable energy resource is scheduled for a few years down the road,⁵ the advantage of signing up for a PPA is that you can get connected seemingly before the ink is even dry and start saving on future electricity bills straight away.

It is possible to save even more money when you combine a PV system with a battery storage solution. This will allow you to store and utilize the energy that your panels absorb from all those hours of peak sunshine during the day for use when your area has a power outage, or at night when the sun goes down.

Additionally, they can help to reduce the reliance on the grid during periods of peak electricity usage in your neighborhood, and at times when there are blackouts, an occurrence that is becoming more frequent.

Solar batteries are, however, not cheap. They can add up to $20,000 or more on a quote, depending on the type of battery, the size, and how many are needed.

Due to this extra cost, some Floridians elect to forgo an expensive battery system and opt for net metering instead.⁶

Your own financial circumstances, as well as your location, will dictate which format will suit your needs best.

Solar Power Calculator and the Solar Panel Cost Calculator Florida

The best way to determine how many solar panels are needed for your home is by looking at the kWh consumption on your last few utility bills. This is an important consideration if you are considering going completely off-grid if your electricity needs will be totally reliant on solar energy.

Whatever type of solar panels you buy, the output has to either match or exceed the kWh amount on your utility bill, so the calculation has to be accurate.

To calculate the households’ electricity consumption, multiply the daily usage by peak sunlight hours a day in your area, then add 25 percent as a buffer against weather conditions that might diminish your system’s efficiency, and then divide that by the panels’ wattage.

Always convert the kWh to watts by multiplying by 1,000. If we presume that your daily kWh is about the national average of 30 kWh, then the formula should look like this

Daily Usage kWh X 1,000

Divide by 6 hours of sunshine + 25%

/ panel wattage

30 kWh x 1,000 = 30,000

30,000 ÷ 6 = 5,000

5,000 + 25% = 6,250

6,250 ÷ 370 = 17 panels

The wattage of the panels is based on the average size of 370 but if bigger panels are used, with some households installing panels of between 400-500, then less of them would be required to deliver the same level of energy.

If any other energy-intensive appliances or an electric bike or car need to be charged every day, the number of panels would have to be increased to cater to the extra load.

From this information, the cost of the panels can be calculated, and then just the installation fees would need to be included.

Is It Possible To Go Off-Grid in Florida?

Absolutely. As long as sufficient panels are installed with a suitable battery storage system, it is more than possible to become completely energy-independent in the Sunshine State, especially with all the Florida solar incentives available.

In fact, some co-ops are switching to solar power through group purchases.⁷

Does Solar Increase Home Value

A solar energy system will typically return its initial investment or does solar increase home value in the form of lower electricity bills over a set period of time that can be anywhere from 6 -12 years, or sometimes even sooner.

This fact is attracting house buyers to those properties that already have solar arrays installed, and they are willing to pay extra for it, aware that savings on utility bills will balance the books very quickly.

Solar has become a must-have feature for many buyers due to the rising cost of electricity. If you are one of those climate-conscious buyers searching for ways to reduce your dependence on fossil fuels and cut greenhouse gas emissions,⁸ then the sooner solar panels are displayed on your rooftop the cleaner and greener your house will be.

As a result of this level of climate awareness, you might like to know that across Florida those homes with a PV system have increased in value average of 4.1%, and in cities like New York that percentage increase is even higher.

In the Big Apple, studies have shown that buyers are willing to spend an extra 5.4% more on a solar-powered house compared to a non-solar-powered one.

It is important to note that different variables such as location and the size and condition of the solar array can affect the amount of money that a solar power system can add to your property.

Pros and Cons of Solar Panels in Florida (Are Solar Panels Recycled)

In one form or another, Florida solar incentives and rebates have been around for the last few decades, and have only improved over time with the benefits that they offer.

What has also occurred over the last 2 years is that the cost of solar panels in Florida has decreased, opening the industry to more customers.

Now, however, those older solar panels installed in that time period are nearing the end of their useful life cycle and are in need of replacement.

Previously, they were simply being disposed of in landfills, the cost of any attempts at recycling cost prohibitive.

That is slowly changing with improved technologies enabling the harvesting of valuable components that can be extracted and reused.

It has been estimated that this new industry off-shoot of recycling solar panels and batteries, could be worth billions in the years to come as more and more end-of-life solar systems are replaced.

Just as numerous companies were flocking to Florida to sell and install solar arrays, now new enterprises are appearing to recycle them.

Once again, it seems, that Florida wants to be at the forefront of this new renewable and recyclable opportunity.⁹

With Florida Solar Tax Credit, How Does the Solar Tax Credit Work if I Don’t Owe Taxes?

The Solar Investment Tax Credit, or Federal Solar Tax Credit, allows homeowners to recoup 30% of their system costs off their tax liability for the year in which they installed their solar energy systems.

How does the solar tax credit work if I don’t owe taxes? It’s important to note that this is a credit, meaning it offsets taxes you owe; it doesn’t replace them.

Moreover, it only applies to homeowners who buy their own solar power system outright or finance it with a loan.

If the system is leased from a third-party company, you won’t be eligible for these federal energy credits.

To take advantage of the Solar Investment Tax Credit, you must file IRS Form 5695 with your federal tax return. The form will help you calculate your credit and ensure that it’s properly applied to your filing.

The value of the tax credit can be used for as long as it’s available, which currently ends on December 31, 2032.

The tax credit is non-refundable, meaning that if you receive a larger credit than you owe in taxes for a particular year, you cannot cash it out or use it for other purposes.

However, if you owe less than the value of your credit for that year, you can roll over the leftover amount into the next one, so either way it is an invaluable program that has helped residents enormously.

Future of Solar Power in Florida and Do Florida Solar Incentives Work for Everyone?

Florida ranks third in the country for PV deployments behind giants like California and Texas with a lot of the recent growth occurring in the rooftop solar market in both residential and commercial sectors.

A recent study revealed that steep electric utility rate increases have driven many Floridians such as you to adopt solar energy to reduce skyrocketing energy bills.

The general awareness of climate change and the problems associated with multi-day utility outages due to hurricanes has also influenced their decisions and sparked demand.

If you are one of those residents who is waiting for a rainy day or is on the fence even after receiving expensive utility bills month after month, then you are missing out.

All you have to do is look up the renewable energy source above and you won’t have to ask: do Florida solar incentives work – solar panel cost in Florida, rebates credits worth it? because the hot Florida sun will be staring you in the face.

Frequently Asked Questions About Florida Solar Incentives