Florida is known as the Sunshine State thanks to its warm climate and prolonged sunny days. With such abundant sunlight, it comes as no surprise that local solar power potential is promising.
Solar panel systems are gaining popularity in the state as more homeowners and businesses recognize the economic and environmental advantages of transitioning to clean and renewable electricity.
Popularity of solar panel installation in Florida
According to the Solar Market Insight Report 2023 Q3 from the Solar Energy Industries Association (SEIA), Florida was the leading state in solar energy for the first half of 2023.
The state reported 2,499 megawatts (MW) of installed capacity in the first six months of the year, a stark comparison to the total 1,900 MW of 2022. Meanwhile, California came in second place with 1,648 MW and is followed by Texas with 1,292 MW.
Solar Financing Options in Florida
Before you start diving into the complexities of solar panel systems, it’s also good to look into the financial side of owning one. Solar panels are a long-term investment as they are meant to last for decades. Therefore, it’s no surprise they can also come with a big price tag.
Take some time to research the available solar panel options near you and how much they cost so you can draw up a budget. Below are a few financing options you can consider.
Solar lease vs. solar purchase options in Florida
A solar lease lets you reap the benefits of reduced energy bills and eco-friendly electricity without the high up-front costs. Instead, you agree to pay a monthly fee to have solar panels in your home.
With a solar lease, the leasing company will take the pressure off you and ensure that the system operates optimally throughout the lease. They will monitor its performance and conduct maintenance and repairs whenever necessary.
The typical term length for a residential solar lease is 20 to 25 years while businesses can vary between 7 and 20 years. While choosing a solar lease has less up-front costs, it disqualifies you from cost-saving incentives since it is a lease and you don’t own the system.
Meanwhile, a solar loan allows you to become the owner of the solar panel system without paying the total price upfront. Instead, you can take a loan from the bank or a loan company and repay the costs through monthly installments.
This payment method is more attractive because it allows you to still own the system and enjoy its benefits without burning a hole in your pocket. Additionally, you are still eligible for federal tax credits which can bring big savings.
Solar energy programs
A subscription package is another option to consider if you aren’t keen on paying high up-front costs. For example, Duke Energy Florida customers can subscribe to the Clean Energy Connection Program to benefit from solar power and earn credits toward electricity bills without installing or maintaining their systems.
Regardless of which option you choose, be sure to consider the incentives and exemptions that are available to you.
Solar panel tax credits in Florida
There are a few tax exemptions that are established to incentivize Florida home and business owners to install solar panel systems and encourage the adoption of clean renewable energy. However, to qualify for these incentives, you must own the solar panel system either by paying for the system outright or taking out a solar loan.
Solar and CHP sales tax exemption
The Solar and Combined Heat and Power (CHP) sales tax exemption allows for qualifying solar and CHP equipment purchases to be exempted from state sales tax. Eligible equipment includes solar panels, inverters, and batteries.
Property tax abatement for renewable energy
This law exempts solar panel owners from paying property tax on various renewable energy properties such as new residential solar energy systems, solar energy collectors, inverters, and photovoltaic (PV) modules.
It gives an 80% abatement on the value added on nonresidential systems such as those on business sites while homeowners can enjoy a 100% abatement on the value added.
Federal solar tax credit
The federal solar tax credit gives solar panel system owners additional savings through a tax credit that is equal to 30% of the solar panel installation cost. This credit applies to new systems and only once per household.
Popular solar panel installation companies in Florida
Installing solar panels can be a big project and you will want to engage with professionals who are familiar and good at the job.
Some of the popular solar panel installation companies in Florida include May Electric Solar in Clermont, PayOli Solar in Miami, Freedom Solar Power in Orlando and Tampa, and Momentum Solar.
10 Frequently Asked Questions (FAQs)
payoli.netIs it worthwhile to install solar panels in Florida?
Installing solar panels in Florida is a worthwhile effort because of several reasons. The state receives abundant sunlight resulting in highly efficient solar energy production and a consistent source of renewable energy throughout the year.
Additionally, the state offers various financial incentives to make solar installations more cost-effective, and you can also consider solar leases or loans. Not to forget that solar installations can increase the resale value of your home.
How much does it cost to install solar panels in Florida?
The average cost of home solar panel systems in Florida is $3.31 per watt with the final cost depending on your energy needs. Costs can be as low as $8,000 for a 3 kilowatt (kW) system to at least $25,000 for a 10 kW system.
However, the final cost is lower thanks to the 30% federal tax credit. Consult a professional to assess your energy needs and how they fit into your budget.
What is the average payback period of solar installation costs in Florida?
The payback period for solar installation costs in Florida can vary based on the up-front cost, available financial incentives, energy production, and local utility rates. On average, the payback period for residential solar installations in Florida ranges from 6 to 10 years.
Is there a zero-cost solar program in Florida?
There are no programs that offer free solar panels in Florida.
What are the advantages of solar installation in Florida?
Installing solar panel systems in Florida comes with numerous advantages. With abundant sunlight and efficient energy production, homeowners and businesses can enjoy significant reductions in energy costs and utility bills.
As mentioned above, some financial incentives and exemptions offset initial installation expenses. In addition, Florida also has a net metering system whereby owners can earn credits on excess energy.
Furthermore, embracing solar power promotes environmental sustainability. It reduces greenhouse gas emissions and encourages the development of innovative solar technology.
What are the disadvantages of solar installation in Florida?
While solar installation in Florida comes with numerous advantages, it also has some disadvantages. One notable challenge is the intermittent nature of sunlight due to occasional cloud cover and storms that impact the generation of solar energy.
Moreover, the initial upfront costs of installing solar panels may be a challenge for some individuals, even with available financial incentives. Although Florida supports net metering, variations in utility policies and regulations can affect the financial benefits for solar system owners.
Maintenance costs and potential issues related to hurricane-prone weather also pose considerations.
Do I need a permit to install solar panels in Florida?
Yes, you must submit the detailed plans and specifications of the solar panel system to the local building department. A permit is given when your solar plans satisfy the local building codes and safety standards.
What tax rebates or solar incentives are available in Florida?
Florida offers several tax rebates and solar incentives to encourage solar energy adoption. These include the Solar and CHP Sales Tax Exemption, Property Tax abatement for Renewable Energy Property, and federal tax credits.
Local utility companies may offer rebates or performance-based incentives, and the state supports net metering, allowing solar system owners to earn credits for excess energy production.
What are Florida laws regarding fraud in solar panel installation?
Florida laws on scams in solar panel installations include various legal provisions to protect consumers and maintain the solar industry’s integrity.
Acts of fraud, such as deceptive advertising, misrepresentation of products or services, or failure to deliver promised benefits, are addressed under consumer protection laws.
Companies engaging in fraudulent practices can face fines and legal actions. Consumers need to be aware of their rights and report any suspected fraudulent activities to the appropriate authorities.
Additionally, the Consumer Federation of America plays a role in overseeing consumer protection in the state, ensuring that consumers are not misled or deceived by fraudulent practices in the solar industry.
How to choose the right Florida solar installation company?
Selecting the right solar panel installation company in Florida involves thorough research. Look for companies with positive customer reviews, relevant certifications like NABCEP (North American Board of Certified Energy Practitioners), and proper licensing and insurance.
Obtain multiple quotes to compare costs and inquire about what’s included in the installation, especially any warranties on panels and installation work.
Consider the company’s experience with Florida’s weather conditions and its knowledge of local regulations. Opt for a company that communicates effectively, addressing your questions and concerns.
Conclusion
Arming yourself with knowledge of the key aspects of solar panel installation is the first step to making an informed decision. Owning a solar panel system can be a worthwhile investment in Florida thanks to abundant sunshine and financial incentives.
As solar energy continues to play a pivotal role in sustainable living, embracing solar panel installation in the Sunshine State represents not just an investment in clean energy but a commitment to a greener and more environmentally conscious future.
