Solar Guide
Solar in Orlando
Central Florida’s abundant sunshine makes Orlando ideal for solar energy, with Florida ranking 2nd nationwide for residential solar installations. With electricity prices rising 26% from 2020 to 2024, many Orlando homeowners are exploring solar solutions.
Understanding your options for home solar panels can help you make an informed decision about this solar energy solution.
Key Takeaways
- Orlando gets 280+ sunny days per year, making it ideal for solar energy production with consistent monthly savings.
- Federal tax credits save Orlando homeowners 30% on solar installation costs, plus Florida offers additional property tax exemptions.
- Average Orlando solar system pays for itself in 7.7 years while providing 25+ years of clean energy savings.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Orlando neighborhoods like Winter Park, Altamonte Springs, and Oviedo. Get accurate pricing estimates based on actual local projects, not generic estimates.
System
Cost
Savings
Orlando Electricity Prices
Understanding Orlando’s electricity costs helps homeowners make informed energy decisions as rates continue climbing across Florida.
Florida electricity rates jumped from 11.9 cents per kWh in 2021 to 15.2 cents in 2023, representing a 28% increase over just two years.
Solar panels allow Orlando homeowners to generate their own electricity, reducing dependence on the grid and providing protection against future rate increases.
With solar systems typically lasting 25+ years, homeowners can lock in predictable energy costs while traditional electricity rates continue their upward trend.
Price of Energy: Florida vs National Average
Orlando Area Utility Providers
Orlando residents receive electricity from four main providers with varying rates. In 2023, costs ranged from Orlando Utilities Commission’s 12.6¢ per kWh to Duke Energy’s 18.1¢ per kWh.
Orlando Utilities Commission offers below-average rates at 12.6¢, while Duke Energy’s 18.1¢ exceeds both state (15.2¢) and national (16.0¢) averages due to different operational structures and service territories.
With electricity rates varying significantly across providers, solar panels can provide predictable energy costs. Fixed solar payments help Orlando homeowners avoid future utility rate increases while reducing monthly expenses.
Orlando Utilities Electricity Rates
Florida Solar Incentives
Orlando homeowners can significantly reduce solar installation costs through federal and state solar incentives in Florida.
Florida offers property tax exemptions, sales tax exemptions, and net metering programs. These incentives help offset upfront costs and provide ongoing savings for Orlando solar installations.
Research these incentives thoroughly as programs can change. Acting promptly ensures you maximize available benefits for your solar investment.
$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 solar panels, inverters, storage systems, mounting equipment, and other components that are integral parts of the renewable energy system. To qualify, the renewable energy equipment must be 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 (commercial properties will lose their partial exemption). This incentive applies automatically when you install qualifying renewable energy equipment – no separate application is required beyond normal permitting processes.
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 on their solar installation. 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 and solar-powered attic fans.
To qualify, the equipment must be used exclusively in a solar energy system for applications like water heating, space heating and cooling, or electricity generation. There are no income requirements or system size limitations, and no application process is needed. The exemption has no expiration date and applies automatically at the time of purchase when you buy from qualified solar installers who will handle the tax exemption documentation for you.
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 credit values vary significantly depending on which utility company serves your area.
Most Florida utilities offer 1:1 net metering, meaning you receive full retail rate credits (typically 10-15 cents per kWh) for excess solar energy during the billing period. However, some utilities like Kissimmee Utility Authority and Sumter Electric Co-op provide export credits at reduced rates of 8-9.5 cents per kWh. At the end of each year (usually December), most utilities conduct an annual “true-up” where any remaining excess credits are either paid out at a much lower wholesale rate (around 2-3 cents per kWh) or forfeited, and your account resets to zero.
Important considerations include monthly minimum bills that some major utilities like FPL ($25/month) and Duke Energy ($30/month) have implemented, which means you’ll always pay at least this amount regardless of your solar production. Additionally, some utilities require customers to switch to special rate plans or pay additional monthly fees for distributed generation. The program is generally available to residential customers who install qualifying solar systems, but specific eligibility requirements and system size limits vary by utility company.
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 QuoteOrlando Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Orlando’s abundant sunshine and minimal seasonal variation create excellent solar conditions year-round. Even with occasional clouds and rain, proper system design maximizes energy production effectively.
Solar Production in Orlando by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average 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 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 Orlando
We’ve mapped every solar installation across the United States to create this interactive heatmap of Orlando. Click any hexagon to discover how many neighbors in that area have already made the switch to clean energy!
Leasing Solar Panels
Orlando homeowners have access to Palmetto’s solar lease program through LightReach, which is available with most local utility providers including Orlando Utilities Commission, Florida Power & Light, and Duke Energy.
With a solar lease, you pay a fixed monthly amount (typically $100-200) regardless of how much electricity your panels produce. This predictable payment structure makes budgeting easier compared to purchasing a system outright, where you’d handle all maintenance, repairs, and performance monitoring yourself.
The lease option eliminates the upfront investment of $15,000-25,000 that comes with cash purchases, while Palmetto handles all system maintenance, monitoring, and repairs. Learn more about whether leasing or buying makes sense for your situation.
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 Orlando. The city receives over 280 sunny days annually, creating ideal conditions for solar energy production year-round.
Orlando homeowners can save approximately $81,000 over 25 years with solar panels. The 30% federal tax credit, Florida’s property tax exemption, and sales tax exemption significantly reduce upfront costs, while the average system pays for itself in just 7.7 years.
Yes, Orlando has net metering through most utility providers. Orlando Utilities Commission (OUC) and Florida Power & Light offer 1:1 net metering, meaning you receive full retail rate credits for excess solar energy sent to the grid.
However, policies vary by utility. FPL and Duke Energy charge monthly minimum bills ($25-30), while excess credits are typically paid out at wholesale rates during December true-up periods.
Yes, solar panels increase home value in Orlando, FL. Research shows solar panels can increase home value by approximately 4.1% according to Zillow’s nationwide study.
For Orlando’s median home price of around $350,000, solar panels could add approximately $14,350 in value. Additionally, Florida’s property tax exemption means homeowners enjoy this increased value without paying higher property taxes on the solar equipment.
Solar installation costs in Orlando typically range from $15,000-$24,000 after federal tax credits. System size depends on your home’s energy usage and roof space available.
A typical 10 kW system costs around $19,132 after the 30% federal tax credit. Florida’s property tax exemption and sales tax exemption provide additional savings, making solar more affordable for Orlando homeowners.
Yes, solar is financially worth it in Orlando. With 280+ sunny days annually and rising electricity costs, solar panels provide substantial long-term savings for homeowners.
The average Orlando solar system pays for itself in 7.7 years while providing $81,000 in savings over 25 years. Federal tax credits reduce upfront costs by 30%, and Florida’s property tax exemptions provide additional savings without increasing your tax burden.
We’re Palmetto Solar, and we’ve completed over 8,930 installations across Florida since 2020. As a national company with local expertise, we understand Orlando’s unique solar conditions and utility requirements.
Our comprehensive approach includes some of the industry’s best financing options, a trusted installation network, and ongoing support throughout your solar journey. We focus on making solar accessible and straightforward for Orlando homeowners.