Florida is one of the sunniest states in America, getting on average 5,6 peak sun hours a day. The state has been growing slowly in the solar industry, mainly because it does not allow power purchase agreements and there is no renewable portfolio standard. However, thanks to some recent changes and more people adopting solar, Florida is expected to rise as a leader in solar power in the Southeast in the very near future.
Today, the average cost of a solar panel in Florida is $2.67/W.
Therefore, the cost of installation of the 5kW solar panel system ranges from $11,300 to $15,300, with the average price coming in at $13,300. After taking out 30% for Federal Tax Credit and other state incentives, the price of solar will go down by thousands of dollars.
The Federal Investment Tax Credit – with this government program, you get a 30% credit on your taxes in the following year, including parts and labor.
Florida's Solar Property Tax Exemption - Florida has a 100% property tax exemption for residential properties with installed solar and 80% tax exemption for non-residential properties.
Solar and CHP Sales Tax Exemption – solar consumers are exempt from paying 6% sales tax on their solar power systems and any additional taxes associated with any usage of their solar.
Solar Leasing – since Florida does not allow power purchase agreement (PPA), the customer pays a monthly leasing fee to use a solar panel and gets a reduced electric bill for the electricity it generates.
When comparing Florida’s solar energy advantages and disadvantages, it is clear that the advantages significantly outweigh the disadvantages. With the prices lower than ever and the great support from the government and the state, there is no better time to install solar power system and start saving money on your utility bill while helping the environment.
There are various solar incentives depending on the area you live in:
Homeowners connect their solar power systems to the grid and receive credits for the energy generated by their systems. These credits are applied to customers’ monthly electric bill, and monetary compensation is provided in January for any unused credits. Florida Power and Light Net Metering program covers almost all Florida, excluding the Panhandle, and available to the residents of:
This program offered various financing options to both residential and commercial property owners who wish to install solar energy systems. Some of these programs are:
The PACE program is available to any county in Florida.
When you install your solar system, 30% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is being phased out by 2022.
Most people are eligible to claim this credit (you must owe federal taxes to be eligible).
Example of 4 kW system calculation in Minnesota for electricity bill $100
Get the results of the calculation in the mail