How Much Do Solar Panels Cost in Florida?

How Much Do Solar Panels Cost in Florida

In Florida, a solar panel system costs $3.31 per watt or $16,550 per kilowatt (kW) for a 5 kW system before incentives. This is a bit more expensive than the national average cost of $2.85 per watt or $14,250 for a 5 kW system. After factoring in the federal 30% tax credit, the net cost for a 5 kW system in Florida is $11,585. The state also provides additional cost savings through a property tax and sales tax exemption on home-based solar systems.

The electricity output of solar panels is influenced by local factors such as your roof and shading. In Florida, a 5 kW solar system can generate around 7,500 kilowatt hours (kWh) per year. Considering the average electricity rate in Florida is 15.51 cents per kWh, this translates to an annual savings of $1,163 on your electric bill. Investing in solar power not only helps the environment but also puts some extra money back in your pocket.

Cost Per System Size in Florida

The number of solar panels your home needs depends on how much energy you use. In Florida, each kilowatt-hour (kWh) of solar power can generate about 1,500 kWh annually. A solar installer can help figure out the right number of panels for your home.

For example, if your house uses 15,000 kWh per year, you’d need a 10 kW system. If it uses 7,500 kWh, a 5 kW system would do the job. The most efficient solar panels have a wattage between 370W and 440W. So, for a 10 kW system, you’d need 23 to 27 panels, and for a 5 kW system, 12 to 14 panels would suffice.

In Florida, the average cost for home solar systems is $3.31 per watt. The table below shows the estimated costs for solar installations, both before and after federal tax credits, for systems ranging from 5 kW to 10 kW.

System SizeSystem Cost Cost After Federal Tax Credit
5 kW$16,550$11,585
6 kW$19,860$13,902
6 kW$23,170$16,219
8 kW$26,480$18,536
9 kW$29,790$20,853
10 kW$33,100$23,170

How Much Can You Save With Solar in Florida?

It’s not surprising that Florida has a lot of potential for solar energy. According to the latest Solar Market Insight Report by the Solar Energy Industries Association, Florida is leading the way in installed solar capacity. In just the first half of 2023, Florida had the highest installed solar capacity, reaching 2,499 Megawatts (MW). California came in second with 1,648 MW of solar installed, and Texas ranked third with 1,292 MW. This shows that Florida is making significant progress in harnessing solar power.

Savings By System Size

This chart gives you an idea of the expected yearly savings and the time it takes to recover your investment when you install solar panel systems in Florida, ranging from 5 kW to 10 kW.

The savings on your power bill were figured out by multiplying the yearly solar production by the residential electricity rates. To estimate the solar production, we used the National Renewable Energy Laboratory’s (NREL) PVWatts calculator. The residential electricity prices come from data published by the U.S. Energy Information Administration (EIA). For our calculations, we used the October 2023 price of 14.98 cents per kilowatt-hour (kWh) for Florida.

We then divided the projected yearly savings by the net system costs, considering a 30% reduction due to the federal tax credit. This gives you a sense of how long it takes to recover your costs through the savings generated by your solar panel system.

System SizeNet Cost After 30% Federal Tax CreditAnnual SavingsPayback Period
5 kW$11,585$1,2369.3 years
6 kW$13,902$1,3919.9 Years
7 kW$16,219$1,6249.9 Years
8 kW$18,536$1,8559.9 Years
9 kW$20,853$2,0879.9 Years
10 kW$23,170$2,3199.9 Years

Please note: The energy savings and payback period are estimates and may vary depending on the installation costs, energy bills, and roof conditions, as well as other local factors.

What Determines the Cost of Solar Panels?

The cost of solar panels depends on various factors, such as local rules and your energy needs. Here are the key factors:

Net Metering

This allows surplus electricity from your solar system to be credited at retail rates on your next utility bill. Florida’s investor-owned utility companies, like Florida Power & Light, Gulf Power, Duke Energy, and Tampa Electric Company, offer net metering.

Payment Method

Solar companies typically offer two payment methods—buying the solar system upfront or opting for a lease or loan. Power purchase agreements (PPAs) are not allowed in Florida. Paying upfront is the most cost-effective, avoiding interest and enabling tax incentives. Leases cost less initially but don’t offer ownership benefits or full incentives.

Type of Solar Panel

Monocrystalline panels are common for residential use due to high performance, though they’re pricier. Polycrystalline panels are cheaper but less efficient. Thin-film panels are affordable and suitable for smaller projects like RVs or sheds.

Tax Credits

Solar panel tax credits provide financial relief. Learn more about Florida incentives for additional savings.

System Size

The number of panels you need depends on your energy needs. The average Floridian installs a 5 kW solar power system, requiring around 20 standard 250-watt panels costing about $11,000. Larger systems cost more due to more panels and a higher installation budget.

How to Save on Solar Panels

To save on solar panels in Florida, you can take advantage of various methods, including:

Claim Federal and State Incentives

  • State Sales Tax Exemption: Florida doesn’t charge a 6% state sales tax on solar equipment. For instance, if you buy a $19,860 6 kW solar system, you’ll save $1,192.
  • Property Tax Exemption: Installing solar panels won’t increase your home’s taxable value in Florida. For instance, if your home value goes up from $400,000 to $425,000 due to solar panels, your taxes stay the same, saving you $245 annually.

These state tax exemptions can be combined with the federal credit. This nationwide incentive lets you claim 30% of your total system cost on your federal taxes. For a $19,860 6 kW system, the tax credit is $5,958, reducing the system cost by $13,902.

Join Net Metering

You can benefit from Florida’s state policy called net metering, which allows the extra electricity your solar panels produce to be sent to the grid and credited by local electric companies. This program is particularly useful around noon when solar panels generate the most power. If you’re not home during the day and most of your solar electricity goes to the grid, you’ll receive a credit on your power bill.

The two major net metering programs in Florida are Duke Energy (FPL) and Florida Power & Light. For systems smaller than 10 kW, there’s no application fee, and you don’t need to submit liability insurance. Joining net metering can help you make the most of the solar energy your 

Solar Panels in Florida: Are they Worth it?

We strongly recommend installing solar panels in Florida because the state has plenty of sunshine and a favorable policy on net metering.

In a sunny city like Miami or Tampa, a 6 kW solar system can generate about 9,000 to 9,800 kWh per year. Considering the average electric rate of 14.98 cents/kWh, you could save anywhere between $1,348 and $1,468 per year.

After subtracting 30% from the federal tax credit, the net cost for a 6 kW solar system would be $13,902. You can expect to recover this cost in about 9.3 to 10.3 years, based on estimated annual savings.

Quality solar panels often last more than ten years, and many manufacturers offer warranties for 25 years or longer. In Florida, even with a 25-year warranty, you can enjoy 15 years of free electricity after recovering your costs.

Florida’s state solar incentives also make investing in solar technology worthwhile. Solar power systems are exempt from both state property and sales taxes. If your home’s value increases from $400,000 to $430,000 due to a solar system, you won’t be charged property taxes on the $30,000 increase. This makes solar investment financially beneficial in Florida.

Ready to Harness the Sun’s Power? Take the First Step Towards Savings!

Now that you know the benefits of solar panels in Florida, why wait? Join the solar revolution and start saving on your electricity bills. Contact Elevate Roofing and Solar to get a personalized quote and discover how much you can save with solar energy. 

Don’t miss out on the opportunity to contribute to a sustainable future while enjoying significant financial benefits. Act now and embrace the power of solar!

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