Discover the sunshine state's solar advantages:
With enticing incentives, economical installation rates, and abundant sunlight, transitioning to solar proves advantageous for most Florida homeowners. In the state, solar panels are priced at an average of $2.58 per watt before incentives.
Explore the ins and outs of solar adoption in Florida to determine if it's the right choice for you.
Curious about the cost of home solar panels in Florida?
The typical 6 kW solar system installation averages around $15,480 before incentives. After benefiting from the 30% federal solar tax credit, the total expense reduces to approximately $10,836. Notably, solar panel costs in Florida are below the national average, currently at $2.95 per watt for 6 kW residential solar power systems.
What solar incentives are available in Florida?
Buying a solar system is definitely not cheap. Solar Incentives a great way to encourage residents to install solar by helping bring down costs. While some states offer more than others, the Sunshine State is one of the better states regarding solar incentives. The Florida solar incentives currently offered are:
Federal tax credit
While there is no state-specific tax credit for Florida, a 30% federal solar tax credit is applied to any solar system in the country installed by qualified tax payers.
Known as the federal clean energy tax credit, it allows tax-paying homeowners to claim 30% of their solar system’s cost as a deduction on their income taxes. In other words, the federal tax credit offers you a 30% discount on your solar system.
If your tax liability is less than 30% of your solar system’s cost, you can roll the remaining balance over to the next year for up to five years. You can apply for the tax credit by filling out Form 5695 when you file your taxes.
Now through 2032, the tax credit value is the highest it will be. After that, the percentage will slowly dwindle every year thereafter before being completely eliminated in 2035.
Net metering in Florida
Besides the federal tax credit, one of the best incentives to look out for when investing in solar is states that offer net metering. Luckily, Florida is one of them!
Floridians are blessed with an excellent net metering policy. Under state law, utilities must credit customers for any excess energy their solar system produces at full retail value.
Why net metering is valuable in Florida: With all the sunshine in Florida, your solar system might produce too much energy for your home. This excess power is exported to the grid, and, thanks to net metering, your utility must compensate you for that extra solar energy at the same rate you pay for power. Every kilowatt hour (kWh) of power sent to the grid is 1 kWh off your electricity bill; this is how solar pays for itself.
PACE financing
Florida is also one of the few states that offer PACE as a financing option for homeowners who don’t want to pay for their system in cash. If you don’t have any overdue taxes, or mortgage payments, and you aren’t part of a bankruptcy filing, PACE can be an option for you!
Similar to a loan, you borrow money to fund your solar system. You pay back the borrowed amount through a property tax increase. PACE is available for more than just solar systems. This financing option can be used for most energy-efficient upgrades made to your home. If you choose to move before the balance is paid off, the loan can be passed on to the next property owner.
There are definitely pros and cons when it comes to paying for your solar system through the PACE program. For one thing, PACE financing puts a lien on your property and can have higher interest rates than other options, like Home Equity Line of Credit. Consumer activists have also flagged this financing option for taking advantage of people with lower credit and incomes. PACE could be the right choice for you – it’s just often recommended that you finance your solar project through a traditional provider, like a bank or a solar loan company.
How to sign up for PACE in Florida: One option is to check with your local county to see which PACE programs are in your area. The other, easier option is to check with your local solar company. They can give you expert advice about your options and help you sort out the required paperwork.