Solar Panels in Florida: Costs, Incentives
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The typical cost of residential solar panels in Florida, before the federal solar tax credit, was $33,673 in the second half of 2023. This is lower than the national average of $34,122. The average system size is 14.3 kWs, compared to the national average of 11.6 kWs.
Florida’s primarily humid subtropical climate requires a lot of energy for air conditioning. Installing larger systems makes sense in a state that has one-to-one net metering, which allows customers to offset more of their energy bills with solar. The state's net metering policies and abundant year-round sunshine have fueled strong adoption of residential solar. Florida has few state tax rebates and solar incentives compared to other states, but customers there may still qualify for the federal tax credit.
Solar costs in Florida at a glance
Florida | U.S. | |
|---|---|---|
Typical cost of home solar system before federal solar tax credit | $33,673. | $34,122. |
Typical cost of home solar system after federal solar tax credit | $23,571. | $23,885. |
Median cost per watt | $2.35. | $2.96. |
Average system size | 14.3kWs. | 11.6kWs. |
Source: EnergySage, a solar and home energy product comparison marketplace founded in 2012. Data is from the second half of 2023. | ||
Costs and trends in Florida
Solar has been having a moment in Florida, part of a general upward trend in interest and installations.
“Florida is ranked third nationally in solar growth, and it is continuing to grow in popularity,” said Wendy Parker, executive director of the Florida Solar Energy Industries Association (FLASEIA), in an email. “Most of the state still has net metering, which makes it very favorable to homeowners.”
» MORE: What do solar panels cost?
System sizes are high in Florida compared to other states, at 14.3 kW on average in the second half of 2023. A contributing factor is the falling cost of solar installations, which went from $2.45 per watt in Florida in early 2023 to $2.35 per watt in the second half of 2023.
System size is also often tied to average monthly energy consumption, which is comparatively high at 883kWh per month in Florida.
"In the past year, prices have been trending down, and levelizing some. Certain equipment has come down in price, and extra competition in Florida has driven costs down from some companies. We'll have to see what the tariffs do, potentially driving prices back up," says Dan Massaad, CEO of Guardian Home, an energy-efficient home services and solar installation business in Florida.
Florida established statewide renewable energy goals in 2022 but repealed them in May 2024,. Legislation and incentives may vary with the future priorities of new political administrations.
Tax incentives and rebates in Florida
Net metering. Florida adopted net metering in 2008, as well as guidelines to allow residential solar to interconnect with utility grids. Net metering allows homeowners to sell excess electricity to the local utility.
Property tax breaks. Florida has a property tax incentive for renewable technologies. It ignores the increase in property value due to the installation of solar panels. This savings can add up over time.
Tax credits. Florida doesn’t offer state and local rebates or incentives on rooftop solar panels. However, customers may qualify for the federal tax credit.
Low-cost loans. Some cities offer solar loan programs. For instance, the City of Tallahassee Utilities offered a 5% loan with a 10-year term for solar panel installations, with a maximum loan amount of $20,000.
Related equipment rebates. Providers like the Fort Pierce Utilities Authority also offer flat rebates on solar water heaters. If you intend to include a solar water heater in addition to a solar panel system, check for this type of incentive in your area.
"Florida is a net metering friendly state," Massaad says. "A lot of the big utility companies give you a true 1-to-1 credit on whatever you overproduce, so it makes a lot of sense for many clients to go solar."
» MORE: How solar leasing works
Energy storage in Florida
Floridians often use the grid as their backup, but interest in battery storage is on the rise.
"In Florida, the battery storage is often for clients who are more concerned with power outages, like with hurricanes, and those clients have some control to either operate a room or a few circuits, or a whole home backup,” Massaad says.
The average cost of battery backup was $16,887 in Florida in June 2024 before the federal tax credit. However, a small battery for key circuits in one part of the house may cost less and can help cool one part of a home during extreme heat or keep important medical equipment running during a power outage.
