Average cost of solar panels in Florida (2021)

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With a nickname like the Sunshine State, it’s no wonder Florida has become one of the best states for solar power – only Texas and California installed more megawatts in 2019 and 2020. The cost of Solar panels in Florida are below the US average, making it affordable for more potential users. There are also a number of solar tax exemptions and incentive programs in the state, which you can combine with the 26% federal tax credit to further reduce costs.

According to the Solar Energy Industries Association, solar panel costs in Florida have fallen 36% in just five years, which is one reason you may have seen more of your neighbors installing solar systems. In fact, the total number of installations in the state is now approaching 100,000.

To know for sure how much you would pay for solar power in Florida, you can start getting free quotes from shortlisted solar companies in your area below.

How much do solar panels cost in Florida?

According to SEIA’s most recent Solar Market Insight report, solar home systems currently have an average price of $ 3.03 per watt in the United States. the cost of solar panels in Florida is only $ 2.53 per watt. In other words, solar prices in the Sunshine State are 16% lower than the US average.

Based on this estimate, the typical price for a 5kW solar home system in Florida is $ 12,650. However, when you deduct the 26% federal solar tax credit, the price of the system drops to $ 9,361. The following table summarizes the average prices for common system sizes in Florida, before and after the application of the federal solar tax credit:

Solar panel system size

Cost of solar panel in Florida

Cost after federal tax credit

5kW

$ 12,650

$ 9,361

6kW

$ 15,180

$ 11,233

7kW

$ 17,710

$ 13,105

8kW

$ 20,240

$ 14,978

9kW

$ 22,770

$ 16,850

10kW

$ 25,300

$ 18,722

While these are only average prices, they can give you an idea of ​​what to expect when you go for solar power in Florida. A qualified solar installer can provide an accurate quote based on a professional appraisal of your property and its roof.

What determines the cost of solar panels?

The total cost of solar panels – in Florida or elsewhere – depends on many factors. Even two projects of the same capacity using the same model of solar panel can have very different prices. For example, some roofs require additional work to install solar panel brackets, and the amount of wiring required may change depending on the system configuration.

Let’s go over the main factors that determine the cost of solar in Florida.

Solar equipment

The price of a solar installation varies depending on the type of solar panels you choose. In general, monocrystalline panels are more expensive than polycrystalline panels, but their energy conversion efficiency is higher. In other words, you pay more for each solar panel, but you also get more kilowatt hours over time.

The price also depends on the brand and the complexity of the solar panel systems. For example, a 10kW system with a Tesla Powerwall battery and a smart inverter is more expensive than a 10kW basic grid using a standard inverter and a more basic solar battery.

Solar financing

The cost of solar panels also depends on how you decide to pay for them, and there are three main options: pay cash, get a loan, and sign a solar lease or power purchase agreement (PPA). As with any financial decision, each solar financing option has its pros and cons.

  • A cash payment is the cheapest option over time, but paying for your solar installation up front is a big expense. For a 5kW solar system in Florida, the average upfront payment is $ 12,650, and then you have to wait for the next IRS filing to claim the 26% federal tax credit.
  • A to lend makes paying for solar panels easier because the cost can be spread over several years and the savings on utility bills can be used to pay off your loan. The downside to loan financing for solar panels is interest, which consumes part of your savings.
  • A solar lease or PPA gives you access to photovoltaic panels without owning them directly. A solar lease charges you a fixed amount per month, while a PPA charges you based on the production of electricity from the solar panels. The supplier pays the initial cost and running expenses, and you sign a lease / PPA. However, you can not claim the federal tax credit in this case, since you are not the legal owner of the solar power system.

However you decide to pay for solar panels, you get a clean energy source that lasts for decades. Keep in mind that solar panels are very durable, and the best solar panels come with a 25-30 year power generation warranty.

Installation company

Even though Florida is called the Sunshine State, the local solar power industry was very small before 2016. However, Florida’s solar capacity has been booming ever since, thanks to favorable and declining laws. prices. According to SEIA, there are more than 480 solar companies in Florida and total investments in the state now exceed $ 10 billion.

Having many solar suppliers in Florida is great news for homeowners and businesses alike as competition drives lower prices and better service. The best strategy to make sure you’re getting a good deal is to compare free estimates from many vendors. Ask them to provide you with a detailed quote so that you know exactly what solar products are installed on your roof.

Solar incentives in Florida

Florida not only offers abundant sunshine, but also plenty of incentives for solar panels. However, keep in mind that the incentives may vary depending on your utility or county. Here are the main benefits currently available to reduce the cost of solar panels in Florida:

Florida Solar Incentive

How it affects the cost of solar panels in Florida

Net metering programs

Florida Power & Light, Duke Energy, Gulf Power, and Tampa Electric Company all offer net metering. Surplus electricity from your solar panels is exported to the grid and subtracted from your next retail electricity bill.

State tax exemptions

Solar panels are exempt from the 6% Florida sales tax, and there is a statewide property tax exemption as well. In other words, you will not be taxed for the increase in the value of the home after switching to solar power.

Local solar incentives

Some Florida municipalities and utility companies have their own incentives to switch to solar power. For example, Jacksonville offers a rebate of $ 4,000 per house on purchases of solar batteries. Check your local government websites for opportunities in your area.

Federal solar tax credit

Officially known as the Solar Investment Tax Credit (ITC), this benefit is available in all states. When installing a solar PV system, you can claim 26% of its cost as a federal tax credit.

The benefit will be available until the end of 2022, decreasing to 22% in 2023. From 2024, there will only be a 10% federal solar tax credit for businesses (0% for businesses). houses).

Before switching to solar power, check your options and make sure your system qualifies for the above incentives. A professional installer can give you an accurate estimate of the cost of installing panels on your roof and help you navigate incentive applications to save money down the line. To get in touch with a leading solar installer near you, complete the 30-second form below.

FAQ: Cost of Solar Panels in Florida

Are solar panels in Florida worth it?

It is generally worth installing solar panels in Florida. A 5kW solar power system has an average cost of $ 9,361 in Florida, and it can generate more than $ 25,000 in savings over the 25-year warranty period of most solar panels. In other words, you get around $ 2.50 to $ 3 in savings for every dollar spent on upfront installation costs.

How much do solar panels cost for a 2,000 square foot house?

It depends on your electricity bills, and you can check your annual usage to get a better idea of ​​how much solar capacity you need. With Florida sunshine, you can expect to generate over 1,600 kWh for every kilowatt of installed capacity (assuming favorable roof conditions).

For example, if your house uses 12,800 kWh per year, your solar panel system should have a capacity of around 8 kW. In Florida, a solar system of this size costs about $ 14,978 after the 26% federal tax credit.

Does Florida have a solar tax credit?

Solar panels are exempt from Florida sales and property taxes. This means that you save 6% up front on your purchase and that the increase in the value of the house resulting from the solar panels is not taxable. Some Florida municipalities also have their own discounts and incentives.

Are solar panels free in Florida?

Currently, there are no programs offering free solar installations in Florida. However, you can switch to solar power for $ 0 up front by getting a loan or signing a lease or power purchase agreement. This way, you can start saving on utility bills immediately, and those savings can be used to pay off the loan / lease / PPA.

Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy and solar efficiency consulting experience spans sectors such as banking, textile manufacturing, plastics processing, pharmaceuticals, education, food processing, fast food, real estate and retail. detail. He has also written articles on energy and engineering related topics since 2015.


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