Florida
Solar in Florida
Florida homeowners are discovering how solar installation can provide long-term energy savings, especially as electricity prices have increased 26% from 2020 to 2024. The state’s abundant sunshine has helped Florida rank 2nd for residential solar installations nationwide.
This guide covers everything you need to know about solar panels for your home, from installation basics to financial benefits specific to Florida residents.
Key Takeaways
- Florida ranks 2nd nationally for residential solar installations with over 251,000 homes already powered by solar energy.
- Florida homeowners save an average of $8,200 in solar rebates through federal tax credits and state incentives.
- Solar systems in Florida can save approximately $81,000 over 25 years while protecting against rising electricity costs.
Solar Cost in Florida
Our solar cost calculator uses real installation data from thousands of Florida homes in Miami, Tampa, Orlando, Jacksonville, and beyond. Get personalized pricing based on actual local projects, not estimates.
System
Cost
Savings
Looking for More Detailed Florida City Guides?
Explore our comprehensive solar guides for major cities across Florida to find location-specific information on incentives, installers, and solar potential.
Boca Raton, FL
Bradenton, FL
Cape Coral, FL
Clermont, FL
Davenport, FL
Fort Myers, FL
Kissimmee, FL
Naples, FL
Ocala, FL
Orlando, FL
Palm Bay, FL
Port Charlotte, FL
Port St. Lucie, FL
Punta Gorda, FL
Riverview, FL
Sarasota, FL
St. Petersburg, FL
Tampa, FL
The Villages, FL
Venice, FL
Winter Garden, FL
Florida Electricity Prices
Understanding Florida’s electricity costs helps homeowners make informed decisions about their energy future and potential savings opportunities.
Florida electricity rates jumped from 11.9 cents per kWh in 2021 to 15.2 cents in 2023, representing a 28% increase in just two years for residents.
Solar panels generate electricity at a fixed cost, helping homeowners avoid future rate increases while taking advantage of Florida’s abundant sunshine year-round.
Over 25 years, solar systems can provide predictable energy costs, potentially saving thousands compared to traditional utility rates that continue rising annually.
Price of Energy: Florida vs National Average
Florida Area Utility Providers
Florida’s major utility companies charge varying electricity rates, with 2023 data showing prices ranging from 12.3¢ per kWh (Lakeland Electric) to 18.1¢ per kWh (Duke Energy).
Municipal utilities like Lakeland Electric and Orlando Utilities Commission typically offer lower rates due to local government ownership, while investor-owned utilities face higher operational costs.
With Duke Energy and TECO charging above the national average of 16.0¢ per kWh, solar installation becomes increasingly attractive for long-term energy cost stability.
Florida Utilities Electricity Rates
Florida Solar Incentives
Florida homeowners can significantly reduce solar installation costs through federal and state solar incentives in Florida.
These programs include property tax exemptions, sales tax savings, and net metering credits that help offset your initial investment and ongoing electricity costs.
Understanding these incentives is crucial since policies can change and acting promptly ensures maximum savings opportunities.
$8,200
Average savings in Florida solar rebates
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 systems allows homeowners to install solar panels and other renewable energy equipment without increasing their property taxes. Under this state law, the added value that solar installations bring to your home is completely exempt from property tax assessment for residential properties. This means you can enjoy the increased home value from your solar system without paying higher property taxes on that improvement.
For residential properties, 100% of the added value from renewable energy devices is exempt from property tax assessment. The exemption covers a wide range of equipment including solar panels, inverters, storage systems, mounting hardware, and all integral components of the renewable energy system. To qualify, the renewable energy equipment must have been installed on or after January 1, 2013 for residential properties. The exemption is currently set to expire on December 31, 2037, after which it will revert to covering only residential properties (non-residential properties will lose their partial exemption).
This exemption applies automatically once your renewable energy system is installed and assessed – no separate application is required. The benefit continues for as long as you own the system and remains in place if you sell your home. This makes solar installations more financially attractive by ensuring that the investment in clean energy won’t result in higher ongoing property tax bills.
Florida’s Sales Tax Exemption for solar energy systems eliminates the state’s sales and use tax on solar equipment and components. This means homeowners don’t pay the typical 6% state sales tax (plus any local sales tax) when purchasing solar panels, inverters, batteries, mounting equipment, and other qualifying solar system components. The exemption applies to both purchased and leased solar equipment.
The financial benefit varies based on your system size and local tax rates, but can save homeowners hundreds to thousands of dollars. For example, on a $20,000 solar system, you could save $1,200 or more in state sales tax alone. The exemption covers a comprehensive list of equipment including solar panels, inverters, batteries, mounting hardware, wiring, and even pool solar heating systems. There are no income limits, system size restrictions, or application deadlines – the exemption is available to all Florida residents installing qualifying solar energy systems.
To claim this exemption, you’ll need to provide documentation to your solar installer certifying that the equipment is being used exclusively for a solar energy system. Keep in mind that standard electrical wiring throughout your home and structural roof components don’t qualify for the exemption – only the solar-specific equipment and wiring unique to your solar system are eligible.
Net metering in Florida allows homeowners with solar panels to receive credits on their electric bill for excess energy their system produces and sends back to the grid. When your solar panels generate more electricity than your home uses, that extra power flows to the utility grid and you receive credits that reduce your future electric bills. The specific terms and benefits vary significantly depending on which utility company serves your area.
Most major Florida utilities like Florida Power & Light (FPL), Duke Energy, and Tampa Electric offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar production that can be carried over month to month. However, these credits are typically “trued-up” annually in December at much lower wholesale rates (around 1.5-3 cents per kWh), and your account resets to zero. Some utilities have also implemented minimum monthly bills ranging from $25-30. A few utilities like Kissimmee Utility Authority and some cooperatives offer net billing instead, where excess energy is immediately credited at lower export rates of 3-9 cents per kWh.
Important considerations include that net metering policies can change over time – some utilities have already transitioned away from 1:1 net metering to less favorable net billing structures. Additionally, utilities may have different rate structures for solar customers, such as demand charges or higher customer fees. The annual true-up process means that while you build credits during sunny months, any unused credits at year-end are typically compensated at wholesale rates rather than the full retail value.
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 QuoteFlorida Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Florida’s abundant sunshine and year-round solar potential make it ideal for solar energy, despite occasional clouds and storms affecting production.
What Can the Average Florida Solar System Power?
Summer Production (July)
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)
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
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 EstimateSolar Installations in Florida
We’ve mapped every solar installation across the United States to show you something exciting: your Florida neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar power.
Leasing Solar Panels
Florida homeowners can access solar panels through Palmetto’s LightReach program, which offers leasing options across most major utility territories. This program provides a fixed monthly payment structure that makes solar accessible without large upfront investments.
Unlike traditional cash purchases that require significant capital and ongoing maintenance responsibilities, LightReach handles all system design, installation, monitoring, and maintenance. You simply pay a predictable monthly amount while enjoying immediate energy savings and our 90% production guarantee.
Available throughout Florida with utilities like FPL, Duke Energy, TECO, and others, LightReach offers comprehensive protection and professional management. Learn more about solar leasing options or explore our complete LightReach program to see if this worry-free solar solution fits your needs.
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 MoreFrequently Asked Questions
Yes, solar makes excellent sense in Florida due to the state’s abundant sunshine, rising electricity costs, and strong financial incentives. Florida ranks 2nd nationally for residential solar installations with over 251,000 homes already powered by solar.
With electricity rates increasing 26% since 2020 and federal tax credits covering 30% of installation costs, Florida homeowners can save approximately $81,000 over 25 years while protecting against future rate increases.
Yes, Florida has net metering, but policies vary significantly by utility company. Most major utilities like FPL, Duke Energy, and TECO offer 1:1 net metering where excess solar production earns full retail rate credits that carry over monthly.
However, credits are typically “trued-up” annually in December at much lower wholesale rates (1.5-3 cents per kWh), and some utilities have implemented minimum monthly bills of $25-30. A few utilities like Kissimmee Utility Authority offer net billing instead, crediting excess energy at lower export rates.
Yes, solar panels increase home value in Florida according to Zillow research showing homes with solar panels sell for 4.1% more than comparable homes without solar systems.
Additionally, Florida’s Property Tax Exemption ensures homeowners enjoy this increased value without paying higher property taxes on their solar investment, making it a financially attractive home improvement for Florida residents.
The cost to go solar in Florida averages $19,132 after federal tax credits for a typical 10.13 kW system. Before incentives, the system costs approximately $27,332, but the 30% federal tax credit reduces this by $8,200.
Additional savings come from Florida’s sales tax exemption on solar equipment and property tax exemption on the added home value. Most Florida homeowners see monthly savings of $184 and break even around 7.8 years.
Yes, solar is financially worth it in Florida for most homeowners. The typical Florida solar system costs $19,132 after federal tax credits and saves approximately $184 monthly on electricity bills.
With a payback period of 7.8 years and total savings of $81,000 over 25 years, solar provides strong long-term financial returns while protecting against Florida’s rising electricity rates that have increased 26% since 2020.
We believe Palmetto Solar is the best solar company in Florida based on our proven track record and comprehensive service. Since 2020, we’ve completed 8,930 installations across Florida, providing homeowners with reliable solar solutions and exceptional customer support.
Our combination of competitive financing options, professional installation network, and commitment to customer satisfaction makes us a trusted choice for Florida residents looking to make the switch to clean energy.