Palmetto

Florida

Solar Guide

Certified by Nathan Healy

Quality Solar Solutions Since 2011

Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.

In This Guide

01 Solar Energy in Florida
02 Key Takeaways
03 Florida Reviews
04 Solar Cost Calculator
05 Florida Electricity Prices
06 Florida Solar Incentives
07 Florida Solar Production
08 Solar Installations in Florida
09 Leasing Solar Panels
10 Frequently Asked Questions

Solar in Florida

Looking to harness Florida’s abundant sunshine with home solar panels? As the Sunshine State ranks 2nd nationally for residential solar installations, more homeowners are embracing energy independence while offsetting rising costs. Florida electricity prices have increased 26% since 2020, making solar an increasingly smart investment.

Understanding the solar installation process is your first step toward sustainable energy savings in Florida.

FLORIDA by the Numbers

2nd Most residential solar in the United States

251k Households have installed solar panels

~$8k Florida average solar rebate savings

~$83k Florida average savings over 25 years

Key Takeaways

Florida ranks 2nd nationally for residential solar with over 251,000 households already enjoying energy independence and protection from rising electricity costs.
The average Florida solar system pays for itself in 7.6 years and saves homeowners approximately $83,203 over its 25-year lifespan.
Florida offers valuable solar incentives including a 30% federal tax credit, property tax exemptions, and sales tax exemptions that reduce installation costs.

Palmetto Reviews

Palmetto Solar has been very good. Their communications leading up to setting an install date were better than most companies. Installation was fast and excellent and, we now have survived two hurricanes (Florida) with power outages just fine. Their app is straightforward and their support line has real people answering (imagine that). Good experience overall.

Alan Light

Palm Coast, Florida

My family and I love our solar system, great customer service & installation team was fantastic! We had 30 panels installed based on the amount of kilowatts are use.. 26% tax credit came in handy… I wish I would of gotten the back up battery…. Highly recommend, Palmetto is great….

Philip Burgos

Riverview, Florida

If you’re interested in solar panels, I can highly recommend Palmetto. The company handled all of the logistical details with my HOA, the permitting offices, and the power company. Palmetto sent me a text or email with updates on each step of the process. And the best part is that my power bill has decreased to next to nothing.

Patricia Barlow

Cantonment, Florida

Solar Cost in Florida

Discover the true cost of solar installation in Florida with Palmetto’s calculator. Using real data from our installations in Tampa, Orlando, Miami, and across the Sunshine State, we provide accurate, transparent estimates tailored to your specific location and energy needs.

System Size

Recommended System

10.13 kW

Typical for your home size in FL

This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Florida.

Cost Breakdown

System Cost

$27,332

Federal Tax Credit (30%)

$-8,200

Final Cost

$19,132

Savings

Monthly Savings

Average utility bill reduction

$190

Payback Period

Break-even point

7.6 years

25-Year Savings
Total financial benefit
$83,203

Get Your Personalized Quote

Florida Electricity Prices

Florida homeowners are served by several utility companies with varying electricity rates. Based on 2023 data, providers like Lakeland Electric (12.3¢/kWh) and OUC (12.6¢/kWh) offer rates below both state (15.2¢/kWh) and national (16.0¢/kWh) averages.

While some Florida utilities maintain competitive rates, others like Duke Energy (18.1¢/kWh) exceed both state and national averages. These variations typically result from differences in infrastructure costs, fuel sources, and regional operating expenses across Florida’s diverse geography.

With solar installation, Florida homeowners can reduce dependence on utility pricing fluctuations. As electricity costs continue to rise across the state, generating your own clean energy provides predictable long-term savings and energy independence regardless of which utility serves your area.

Florida Utilities Electricity Rates

Lakeland Electric

12.30¢

-23%

OUC

12.60¢

-21%

Duke Energy

18.10¢

+13%

FPL

15.00¢

-6%

JEA

13.20¢

-17%

Tallahassee Utilities

13.00¢

-19%

TECO

16.60¢

+4%

FL Average

15.20¢

-5%

US Average

16.0¢

—

Source: US Energy Information Administration, 2023, Form 861, Table 6

Florida Solar Incentives

Florida homeowners can access valuable solar incentives in Florida that significantly reduce installation costs, including property tax exemptions, sales tax exemptions, and beneficial net metering programs.

These incentives make solar more affordable for Floridians. The property tax exemption prevents higher assessments on solar equipment, while the sales tax exemption eliminates state taxes on solar purchases, reducing upfront costs immediately.

Florida’s excellent net metering program offers 1:1 credits for excess electricity, potentially offsetting your entire utility bill with the right system size.

Save an average of

$8,200

in solar rebates in Florida

INCENTIVE	TYPE	DESCRIPTION	SOURCE
Residential Clean Energy Credit	Federal tax credit	A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed	Learn More
Property Tax Exemption	State tax exemption	No property tax increase from added solar value. Prevents higher assessment on solar equipment.	Learn More
Sales Tax Exemption	State tax exemption	No state sales tax on solar equipment and installation. Reduces upfront cost immediately.	Learn More

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

Florida’s Property Tax Exemption for renewable energy source devices offers significant tax benefits to property owners who install solar panels and other qualifying renewable energy equipment. For residential properties, 100% of the value added by solar installations is exempt from property tax assessments. For non-residential properties, 80% of the added value is exempt from property tax calculations.

This incentive applies to solar equipment installed on residential properties after January 1, 2013, and on non-residential properties after January 1, 2018. Qualifying devices include solar panels, inverters, storage systems, and related components that collect, transmit, store, or use renewable energy. The exemption is scheduled to expire on December 31, 2037, for non-residential properties. Homeowners should note that equipment on the utility side of the interconnection point does not qualify for this exemption.

Florida offers a valuable Sales Tax Exemption for solar energy systems that eliminates the state’s 6% sales tax on your solar purchase. This exemption applies to all components of solar energy systems, including equipment for collecting, transferring, converting, storing, or using solar energy for applications like water heating, space heating and cooling, or other uses that would otherwise require conventional energy sources.

The exemption covers a comprehensive list of solar components including collectors, pumps, controls, photovoltaic power conditioning equipment, storage units, and necessary accessories like mounting hardware and wiring. When purchasing a solar system, your installer will typically handle the exemption paperwork, but you should confirm this is being applied to your purchase. There are no deadlines or expiration dates for this incentive as it’s an ongoing program, allowing you to benefit whenever you decide to go solar.

Net Metering in Florida allows solar system owners to receive credit for excess electricity they generate and send back to the grid. Most major utilities in Florida offer 1:1 net metering, meaning you receive full retail credit for each kilowatt-hour (kWh) your system exports. These credits offset electricity you draw from the grid when your solar panels aren’t producing enough power, such as at night or on cloudy days.

The financial benefit varies by utility. While most Florida utilities provide month-to-month credit carryover, the annual true-up policies differ significantly. For example, Orlando Utility Commission (OUC) and Winter Park pay out excess credits at full retail rate in December, while Florida Power & Light (FPL) pays only about 1.5 cents per kWh. Some utilities like Duke Energy and Tampa Electric (TECO) pay around 2-3 cents per kWh. Several utilities have recently implemented minimum monthly bills ranging from $25-30, which can affect your overall savings.

It’s important to note that some Florida utilities have moved to less favorable “net billing” models instead of true net metering. Utilities like Kissimmee (KUA), Sumter Electric (SECO), Clay Electric, and Jacksonville (JEA) credit exports at significantly lower rates (typically 3-9 cents per kWh). Before installing solar, check your specific utility’s current policy as these programs can change, affecting your long-term financial returns.

Ready to start saving with solar?

Speak with a Palmetto solar expert to find out exactly how much you can save with Florida incentives.

Get a Free Quote

Florida Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Florida’s abundant sunshine, seasonal variations, and occasional hurricanes create unique solar production patterns. Despite weather challenges, the Sunshine State offers excellent solar potential with the right system.

What Can the Average Florida Solar System Power?

Summer Production (July)

54 kWh/day

In July, your 10 kW system could power:

3.6 average Florida homes (15 kWh/day per home)
or Run central AC for 18 hours AND power all other appliances
or Fully charge 5.4 Tesla Model 3 electric vehicles

Winter Production (December)

30 kWh/day

In December, your 10 kW system could power:

2 average Florida homes (15 kWh/day per home)
or Keep your home heating system running for 15 hours
or Fully charge 3 Tesla Model 3 electric vehicles

Annual Production

14,600 kWh/year

Over a year, your 10 kW system could:

Offset 10 tons of carbon dioxide emissions
or Equal the environmental benefit of planting 175 trees
or Save approximately $4,234 in electricity costs

Want to know exactly how much solar can power your home?

Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.

Get My Custom Estimate

Solar Installations in Florida

Discover how Florida’s neighborhoods are embracing solar energy! We’ve mapped every solar installation across the state to show you just how many of your neighbors have made the switch. Explore our interactive heatmap to see which communities are leading Florida’s clean energy revolution.

Leasing Solar Panels

Florida homeowners can enjoy solar energy benefits without upfront costs through Palmetto’s LightReach lease program, available across 15 major utility territories including FPL, Duke Energy, and TECO. Unlike traditional ownership, this worry-free option eliminates maintenance responsibilities while providing immediate savings.

With LightReach, Palmetto handles everything from detailed solar mapping and installation to ongoing maintenance and system monitoring. The program includes premium black solar panels, high-efficiency inverters, and comprehensive protection with a 90% Production Guarantee that credits you the difference if your system underperforms.

Leasing offers a hassle-free alternative to purchasing, allowing you to go solar without the investment. There’s no need to manage loan payments or maintenance—your solar savings begin immediately once your panels are active, making clean energy accessible to more Florida homeowners.

Go solar without the investment

With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!

Learn More

Frequently Asked Questions

Yes, solar makes excellent sense in Florida due to its abundant sunshine and strong solar incentives. With over 230 sunny days annually, Florida ranks 2nd nationally for residential solar installations.

The average system pays for itself in 7.6 years and saves approximately $83,000 over 25 years. Florida offers valuable benefits including property tax exemptions, sales tax exemptions, and net metering programs that make solar a smart investment.

Yes, Florida has net metering policies that vary by utility. Most major providers like FPL, Duke Energy, and TECO offer 1:1 net metering, allowing customers to receive full retail credit for excess electricity sent to the grid.

However, annual true-up policies differ significantly. While OUC pays full retail rates for excess credits in December, others like FPL pay only about 1.5¢/kWh. Some utilities have implemented minimum monthly bills of $25-30, and a few have switched to less favorable net billing models with lower export rates.

Yes, solar panels do increase home value in Florida. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.

Florida homeowners benefit from this value increase while also enjoying property tax exemptions that prevent higher assessments due to solar installations. This combination of increased market value without additional property taxes makes solar an excellent investment for Florida homeowners thinking about long-term property value.

The average cost of solar in Florida is $27,332 for a 10.13 kW system before incentives. After applying the 30% federal tax credit, the final cost drops to approximately $19,132.

System prices vary based on size, equipment quality, and installation complexity. Most Florida homeowners see a payback period of 7.6 years and save around $83,203 over the system’s 25-year lifespan.

For most Florida homeowners, solar is financially worthwhile with systems paying for themselves in about 7.6 years. The state’s abundant sunshine combined with rising electricity rates (up 26% since 2020) creates excellent financial returns.

With incentives like the 30% federal tax credit and property tax exemptions, the average Florida solar system saves approximately $83,203 over its 25-year lifespan, making it a sound long-term investment.

As a national company with strong local presence in Florida, we’ve completed over 8,900 solar installations across the state since 2020. Our team understands Florida’s unique climate and installation requirements.

We offer comprehensive solar solutions with some of the industry’s best financing options and a reliable installation network. Our approach focuses on education, transparency, and building long-term relationships with customers throughout their solar journey.