With the constant sunshine year round, solar panels in Florida make sense for many reasons. For those who are considering solar panel installation, the initial Florida solar cost may scare you. Yet, there are incentives available and numerous opportunities to reduce your costs. Often, these solar panels pay for themselves over time. Take a closer look at the average cost of solar panels in Florida as well as what you need to consider before buying.
What Is the average cost of solar panels in Florida?
Price estimates indicate Florida solar panels cost between $10,300 and $12,600, with the federal tax credit, and the average cost per watt ranges from $2.32 to $2.83. This can be significantly lower than what it would cost in other states, where the average solar power system is currently at $3.00 per watt.
System installed in 2023 will only be eligible for a 22% federal tax credit, as compared to the current 26%, so don’t delay!
Breaking Down the Florida Solar Cost
For homeowners looking for a way to reduce electricity bills throughout the year, solar is the way to go. There are an estimated 237 sunny days each year in Florida. That’s more than the nation’s average, of 205 days, by an entire month. Solar energy can help you save money while also helping to save the planet and improve the environment for future generations.
The average price for a residential solar power system is $11,442, based on a 6000 watt (6 kW) solar system.
Consider the Solar Payback Period
Homeowners often consider how long it will take to pay back the upfront investment of adding solar to their homes. In Florida, it takes about 10.56 years on average. After that, you’ll be cashing in on your solar system from then on out.
What About Tax Exemptions in Florida for Solar Panels?
For those who are looking for ways to further reduce the cost of solar panels, there’s more good news. There are a few things to consider:
Investment Tax Credit Savings
The Solar Investment Tax Credit (ITC) allows homeowners to recoup a big chunk of equipment and installation costs. Homeowners claim the credit when filing federal tax returns. A similar credit is available for businesses.
The dollar-for-dollar credit is worth 26% of the total cost in 2021 and 2022, dropping to 22% in 2023 before sunsetting in 2024.
Pay No Sales Tax
Thanks to Solar and CHP Sales Tax Exemption, there is no sales tax when you purchase a new solar energy system. You automatically reduce your costs by about 6%, or sometimes more depending on where you live.
Pay No Additional Property Taxes
In most situations, when a person adds value to their home, the property value goes up, so more property taxes are levied against the home. Florida offers a Property Tax Exclusion for Residential Renewable Energy Property so homeowners do not see jumps in their home’s property tax bill for adding the value of solar panels to their home.
Understanding Florida Net Metering
Net metering lets you sell back surplus solar electricity to the electric grid at the full retail rate. It’s a powerful way to earn money because of your solar energy solution. For every 1 kWh you send back to the grid, it’s 1 kWh off your electricity bill. Like some states, Florida has no set capacity limit.
What Other Factors Influence the Florida Solar Cost You Can Expect?
There are many factors to consider when purchasing solar panels. This directly influences what you’ll pay. Here are some things to consider.
- The choice of solar panels you make (some systems are more expensive than others like any other product you may purchase)
- Installation costs, which can range from one company to the next
- Financing costs, as solar loans do have interest charges on them
- The condition and type of roof you have (this may require additional adjustments to get it ready for solar)
- The amount of roof space you have
- How much energy you use in your home
- Local electric rates that can change throughout the year
At Solar Energy World, we’ve been helping people switch to clean, green solar energy since 2009. We’ll take time to help you determine which custom-tailored solar panels are right for you, and we’ll guide you through the entire process. Going solar has never been easier or more affordable.