Florida, aptly named The Sunshine State, has seen a surge in rooftop solar installations. With declining costs and abundant sunshine, the question isn’t whether you should go solar, but why haven’t you already? Here’s why 2023 is the perfect year to invest in solar energy in Florida.
How Much Will Solar Panels Save You?
The average cost for a typical kilowatt (kW) solar system in Florida is around $15,480 before any incentives. After applying the 30% federal solar tax credit, the price drops to approximately $10,836. This is less than the national average for a 6 kW residential solar power system, which stands at $2.95 per watt.
What Incentives Are Available?
- Federal Tax Credit: Although Florida doesn’t offer state-specific tax credits, the 30% federal solar tax credit is a significant incentive. This allows you to deduct 30% of your solar system’s cost from your income taxes. If your tax liability is less than this, you can roll over the balance for up to five years.
- Net Metering: Florida has an excellent net metering policy. Any excess energy your solar system produces is credited back to you at full retail value, effectively paying for itself over time.
- PACE Financing: This is an option for those who don’t want to pay upfront. It allows you to pay back the cost through a property tax increase. However, this option has its pros and cons, including potentially higher interest rates.
- Tax Exemptions: Solar panels in Florida are exempt from property and sales taxes, providing additional savings.
How Much Can You Save?
On average, installing a solar panel system can eliminate your entire electricity bill, saving you about $150 per month or nearly $50,000 over the lifetime of the panels. Your exact savings will depend on various factors, including the size of your system and your electricity rates.
The payback period for solar installations in Florida ranges from 5 to 10 years, depending on factors like electricity usage, system size, and your electricity rate plan.
Why Florida is a Solar Haven
Florida’s abundant sunshine and excellent net metering policy make it one of the best states for solar. However, it’s essential to act soon as net metering policies could change in the future.
Should You Install a Solar Battery?
Given Florida’s robust net metering policy, the financial benefits of installing a solar battery system are currently limited. The upfront costs of a battery don’t offer a significant advantage over the savings from net metering alone.
Solar panels are unquestionably worth it in Florida. With significant cost savings, robust incentives, and a favorable policy environment, there’s never been a better time to go solar in the Sunshine State.