How to Save Big on Solar Panels in the Sunshine State
Florida is known as the Sunshine State for good reason – it ranks third in the nation for rooftop solar potential. But does all that sunshine translate to savings for homeowners who install solar panels? The short answer is yes, you can save a lot of money by going solar in Florida. But to maximize your savings, it‘s important to know how to navigate the state‘s solar landscape and take advantage of all available incentives.
As a solar energy expert and Florida resident, I‘ve helped hundreds of homeowners make the switch to clean, affordable solar power. In this guide, I‘ll share insider tips on how you can save thousands on a solar panel system that will slash your electricity bills for decades to come.
First, let‘s look at the current state of solar in Florida. While the state has lagged behind solar leaders like California, Florida is starting to catch up. Solar capacity has grown by an astounding 8,427% over the past decade, and experts predict Florida will add 11,109 MW over the next 5 years, the 6th most in the U.S.
So there‘s no question that solar works well in Florida. But with the upfront cost of solar still hovering around $12,000 to $16,000 after incentives for an average 6kW home system, are solar panels really worth it from a financial perspective?
For most Florida homeowners, the numbers say yes. With some of the highest electricity rates in the country, Floridians who go solar can see payback periods as short as 5-7 years and 20-year savings of $45,000+. Of course, your exact savings will depend on factors like your energy usage, roof size and angle, shading, and local utility rates.
So how can you keep costs down to speed up your payback period and boost long-term savings? Here are the top ways to save money on solar panels in Florida:
- Claim the 30% federal solar tax credit
The single biggest solar incentive is the federal solar investment tax credit (ITC). This allows you to deduct 30% of your solar panel system cost from your federal taxes, with no cap on its value. For an average $18,000 system, the ITC can reduce your net cost by over $5,400. But act fast, as the 30% credit drops to 26% in 2033 and lower in following years before phasing out completely.
To be eligible for the solar ITC, you must own your solar panel system outright – either by paying in cash or financing with a solar loan. Homeowners who lease their solar panels or sign a power purchase agreement (PPA) with a solar installer are not eligible. So while solar leases and PPAs require no money down and promise savings from day 1, you‘ll likely save more in the long run by owning your system.
- Take advantage of Florida‘s net metering policy
Florida technically has a statewide net metering policy, which allows you to send any excess solar power your panels produce to your utility for credits on future electric bills. However, the state‘s investor-owned utilities like FPL, Duke Energy Florida, TECO, and Gulf Power have successfully lobbied to phase out net metering starting in 2023.
Fortunately, existing solar customers are grandfathered into the current net metering policy for 20 years. So if you go solar before your utility‘s net metering phase-out begins, you can still take advantage of this key solar incentive that can boost your electric bill savings. Don‘t wait until it‘s too late!
- Get multiple quotes from vetted solar installers
Thanks to the Solar Energy Industries Association (SEIA), we know the median quoted cost of residential solar in Florida is $2.83 per watt. But the prices offered by solar installers can vary widely. Getting multiple quotes from vetted installers allows you to compare costs and equipment options to find the best overall value.
Start your search with SEIA‘s list of reputable Florida solar installers, including top local companies like Solar Energy World, Sunpro Solar, and Unicity Solar. Most offer free online quotes you can use to quickly compare ballpark system prices before setting up in-home consultations with your top picks.
During your site visit, don‘t be shy about negotiating with your solar installer on price. Many companies are willing to match competitor prices or throw in free add-ons like electric vehicle chargers to win your business. Even a small reduction in cost per watt can save you hundreds of dollars over the life of your system.
- Explore Florida‘s local utility rebates and incentives
While Florida doesn‘t offer a statewide tax credit or rebate for going solar, many of the state‘s municipal utilities and electric cooperatives offer their own incentives for customers. Here are a few notable programs:
- Jacksonville Electric Authority (JEA) offers a $2,000 rebate for going solar
- Orlando Utilities Commission (OUC) provides a $900 rebate to residential solar customers
- Lakeland Electric has a performance-based incentive that pays $0.54 per watt for the first 5 kW installed (up to $2,700)
- Florida Keys Electric Cooperative offers net metering at full retail rates plus an additional $0.01/kWh for excess solar production
- New Smyrna Beach Utilities Commission provides a $0.05/kWh production incentive for 5 years
While these incentives are small compared to the federal ITC, they can still add up to substantial savings. Check with your local utility to see if they offer any solar rebates, grants, or performance incentives.
- Don‘t forget about Florida‘s solar property tax exemption
When you add solar panels to your home, you increase its value. A study by the Lawrence Berkeley National Laboratory found that buyers were willing to pay a premium of $4 per watt for homes with solar panels. For an average 6 kW system, that‘s an added value of $24,000!
Luckily, Florida is one of many states with a property tax exemption for residential solar panel systems. That means even though your solar panels increase your home‘s value, your property taxes won‘t go up as a result. That‘s a major perk for going solar in Florida that can save you hundreds of dollars per year.
- Consider a solar loan to finance your system
If you can‘t pay for your solar panel system outright with cash, a solar loan can be a smart way to finance your purchase and see a return on your investment quickly. Solar loans typically have lower interest rates and longer repayment terms than other kinds of loans.
Florida has a statewide PACE financing program called the Florida Resiliency and Energy District (FRED) that offers 100% upfront financing for solar and other home energy improvements. PACE loans are paid back through an assessment on your property taxes over a term of 5-25 years. The interest on a PACE loan may even be tax-deductible.
Many solar installers also partner with solar loan providers like Mosaic or Sungage Financial to offer low-interest financing to their customers. Be sure to compare the terms of installer-provided loans to other options like home equity loans, personal loans, or a cash-out mortgage refinance. Look for a loan with low fees, fixed interest rates, and repayment periods of 10-20 years to maximize your solar savings.
Florida Solar Success Stories
Still on the fence about going solar in the Sunshine State? Consider these success stories from Florida homeowners just like you:
Mark in Tampa had a 11.5 kW system installed on his home for $26,000 after the federal tax credit. His system more than covers his family‘s energy needs, and he banked over $1,000 in utility bill credits in the first year alone. Even financed with a 12-year solar loan, Mark‘s system will pay for itself in energy savings in just 6 years.
Janet in Tallahassee powers her home with a 8 kW solar panel system and hasn‘t paid an electric bill in two years. Her utility even cuts her a check at the end of the year for her surplus solar production. Janet‘s system cost $18,000 upfront but she expects to save over $50,000 on electricity over the 30+ year lifespan of her panels.
FAQs About Florida Solar
Q: Will solar panels withstand hurricanes and tropical storms in Florida?
A: Today‘s solar panels are extremely durable and designed to withstand high winds, hail, and heavy rainfall. Look for solar panels with a high wind rating and a robust mounting system. It‘s also a good idea to install panels with microinverters that allow the system to continue operating even if one panel is damaged.
Q: How will solar panels look on my roof?
A: Solar panels are sleeker and more attractive than ever, with black-on-black designs that blend in with your roof. Many Florida homeowners associations (HOAs) even prohibit restrictions on solar panels thanks to the state‘s solar access law. However, to be safe, check with your HOA before signing a solar contract.
Q: What do I need to know about going solar in Florida?
A: Florida is an excellent state for solar thanks to its abundant sunshine, high electricity costs, and solar-friendly policies. To ensure you maximize your savings, get multiple quotes, take advantage of incentives like the federal tax credit and net metering, and consider buying rather than leasing your system. Most importantly, look for a reputable solar installer with proven experience and great reviews.
Take the Next Step
I hope this guide has shown you that going solar in Florida is a bright idea that can save you serious money. For most homeowners, the benefits far outweigh the costs. But the longer you wait, the more you‘ll miss out on incentives like the ITC and net metering that can greatly reduce your out-of-pocket costs.
If you‘re ready to take the next step, I recommend getting a free personalized solar estimate from a trusted site like EnergySage. They make it easy to compare quotes from vetted local installers so you can find the best deal in your area.
Here‘s to decades of clean, affordable energy from the sun!
