December 19, 2022
Going solar in The Sunshine State seems like a no-brainer, but is it a good time to buy solar panels in Florida now? Yes—the significant cost savings due to clean energy incentives and renewable solar power mean that now is the best time to buy solar panels.
According to the Solar Energy Industries Association (SEIA), Florida ranks third in the country for solar power, with over a million homes using solar energy.
The Cost Savings of Solar Panels in Florida
Before factoring in incentives, the average cost of solar panels in Florida is $2.58 per watt, and the standard solar power system costs around $15,000. The amount of savings you can expect depends on the following:
- Household energy consumption
- Cost of solar panels
- Utility rates
Solar panels generate electricity from the sun during the day, reducing your reliance on utility companies and lowering your bills. Decreasing household energy use helps maximize your savings because any excess energy your solar panels produce goes to the power grid. The utility company must award you credit for the extra power, which reduces your electricity bills.
Solar Power Incentives in Florida
Besides producing free solar energy, you can take advantage of multiple solar incentives that will save you tons of money when you buy your solar system.
While Florida doesn’t have a state tax credit for solar panel installation, you can benefit from federal tax credits. Homeowners can claim 26% of their solar panel system’s cost in 2022 as a tax deduction, meaning the government pays for about a quarter of the cost of the system.
After purchasing your solar panels, fill out Form 5695 when filing your taxes to claim the credit.
Net metering is an incentive that enables you to exchange excess solar energy for utility credit. In the sunny state of Florida, your solar panels can produce more energy than your home uses, especially during summer. For every extra kilowatt hour (kWh) that goes to the power grid, your utility company may take that much off your bill.
Property Assessed Clean Energy (PACE)
Florida allows PACE financing for solar power systems, similar to a loan. Instead of paying a loan company, you agree to a property tax increase that goes to your local government. The remaining balance of the PACE loan can transfer to new homeowners if you end up moving.
However, PACE places a lien on your property, and the interest rates can be higher than other loan options, such as a traditional bank or solar company loan.
PES Solar: Expert Solar Panel Installation in Florida
Is it a good time to buy solar panels in Florida? Yes! A place that gets tons of sun is the perfect climate for solar panels, which means significant cost savings while benefitting the environment.