Florida residents interested in installing a residential rooftop solar system should expect to spend roughly $12,000-$14,000 dollars after tax credits, if purchasing outright. The typical payback period, or the time it takes for your system to pay itself off, is about 4-8 years.
It is estimated that residential solar systems in Florida can generate approximately $32,000 in income over 20 years. The U.S. Department of Energy recommends looking at these mapping tools to better understand the potential costs and benefits of going solar in your region.
For those who can’t pay for a rooftop solar system outright, there are also various loan and leasing options available. For more information on installing a residential solar system, visit the U.S. Department of Energy’s Homeowner’s Guide to Going Solar.
Solar Energy Incentives:
For those Florida residents looking to make the switch, there are several incentives available to help balance out the cost.
- Net energy metering—allows residents with solar systems to connect to the existing power grid so that they can earn money or credits for any excess solar power their system produces. In 2008, the Florida Public Service Commission enacted net metering rules for the state’s investor-owned utility companies which include FPL, Duke Energy, Tampa Electric and Gulf Power. As a customer of one of these utilities, if you produce more energy than what you consumed during the month, the credit will be applied to your following bill. After 12 months, the customer is compensated for any unused credits.
- Sales and property tax exemptions—Installing solar panels on your property increases your home’s value, but in Florida it won’t increase your property tax thanks to Florida’s property tax exemption for residential renewable energy property. Residential solar systems are also exempt from sales tax.
- Federal Solar Tax Credit—The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value.
Visit these resources to learn more about solar energy:
- Solar Energy Basics—National Renewable Energy Laboratory
- Solar Energy Technology Basics—U.S. Department of Energy
- Homeowner’s Guide to Going Solar—U.S. Department of Energy
- Solar Energy Careers —U.S. Department of Energy