Solar Panels in Florida: Costs, Incentives

Typical cost of residential solar panels in Florida before federal solar tax creditwas $33,673 in the second half of 2023. This is lower than the national average of $34,122. The average system size is 14.3 kW, compared to the national average of 11.6 kW.

Florida’s climate, mostly humid, subtropical, requires a lot of energy for air conditioning. Installing larger systems makes sense in a state that has one-to-one net settlementallowing customers to pay a larger portion of their energy bills with solar power. The state’s net metering policy and abundant year-round sunshine have contributed to strong adoption of solar power in homes. Florida has few tax breaks and incentives for solar compared to other states, but customers may still qualify for a federal tax credit⁽⁰⁾

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Florida Solar Costs at a Glance

Florida Costs and Trends

Solar energy is booming in Florida, part of an overall trend of increasing interest and installations.

“Florida ranks third in the nation for solar energy growth and its popularity continues to grow,” Wendy Parker, executive director of the Florida Solar Energy Industries Association (FLASEIA), said in an email.⁽⁰⁾

Compared to other states, system sizes in Florida are large, averaging 14.3 kW in the second half of 2023. A contributing factor is the falling cost of solar installations, which rose from $2.45 per watt in Florida in early 2023 to $2.35 per watt in the second half of 2023.

System size is often related to average monthly energy consumption, which in Florida is relatively high at 883 kWh per month.

“Prices have been coming down over the past year, and some have been leveling off. Prices have come down on some devices, and the added competition in Florida has driven down costs for some companies. We’ll have to see what the tariffs do, potentially driving prices back up,” says Dan Massaad, CEO of Guardian Home, an energy-efficient home services and solar installation company in Florida.

Florida set statewide renewable energy targets in 2022 but canceled them in May 2024.⁽⁰⁾

Florida Tax Credits and Reliefs

• Net metering. Florida adopted net metering in 2008, as well as guidelines to allow home solar installations to be connected to the utility grid. Net metering allows homeowners to sell excess electricity to local utilities.

• Property tax relief. Florida has a property tax incentive for renewable technologies. It ignores increase in property value due to the installation of solar panels. These savings can accumulate over time⁽⁰⁾

• Tax breaks. Florida does not offer state or local rebates or incentives for rooftop solar panels. However, customers may qualify for a federal tax credit.

• Low-interest loans. Some cities offer solar loan programsFor example, the City of Tallahassee Utilities offered a 5% down payment loan with a 10-year repayment period for the installation of solar panels, with a maximum loan amount of $20,000.⁽⁰⁾

• Discounts on related equipment. Providers like the Fort Pierce Utilities Authority also offer ongoing rebates on solar water heaters. If you plan to add a solar water heater to your solar panel system, check to see if there is an incentive like this in your area⁽⁰⁾

“Florida is a net-metering-friendly state,” Massaad says. “A lot of the big utilities give you a true 1-for-1 credit for anything you overproduce, so for a lot of customers, going solar makes sense.”

Energy Storage in Florida

Floridians often use the network as a backup, but there is more interest in it battery storage is growing.

“In Florida, battery storage is often targeted at customers who are more concerned about it power outages“like hurricanes, and customers have some control over a room, a few circuits, or the entire house,” Massaad says.

The average cost of a backup battery was $16,887 in Florida in June 2024 before the federal tax credit. However, a small battery for key circuits in one part of the home can cost less and can help cool one part of the home during extreme heat or keep important medical equipment running during a power outage.