You might believe that solar panels cost a pretty penny in the Sunshine State, but it’s not like that at all.

The panels are affordable, particularly when you calculate all the savings and incentives you can get. Not only that, but there are different financing options if you don’t have the cash to cover the cost.

But How Much Do Solar Panels Cost in Florida?

This article will help you find the answer. You’ll also find out about the rebates and incentives available to those who install solar panels. Plus, there are some guidelines on how to take full advantage of the solar energy you produce.

How Much Do Solar Panels Cost in Florida?

The numbers expressed in this article were taken in late 2021. Although some charges may apply, particularly for government incentives, it’s safe to assume the cost will stay roughly the same for at least a year.

Right now, installing a solar panel sets you back about $2.61 per kilowatt. If you choose a 5-kilowatt system, the installation ranges between $11,100-$15,000. On average, the gross price is slightly above $13,000.

However, these numbers don’t account for any of the federal and state incentives you might get. With government incentives, you can shave off thousands of dollars, increasing your overall savings from this kind of system.

Also, you should do your best to compare prices from different vendors. Sometimes, working with more than one company means you might save 20% and get the same power output.

Solar Panels – Cost Per Power Output

Here, you’ll find a list of typical power outputs for solar systems installed in Florida, as well as associated prices. To stress, these have been taken in late 2021 and might be subject to change by the time you’re reading this article.

These numbers may seem huge, but they express the retail value without taking any incentives into account. The tax incentive could remove a few thousand dollars from the price.

For example, if you buy a 5kW panel and apply the federal tax incentive, the system will cost about $9,600 instead of $13,000. The savings are even greater for more powerful systems.

Other criteria to consider are the payback period, the amount of time it takes to save enough on your electricity bill to cover the total investment, and how much you’ll save over 20 years. In Florida, the payback period is about ten years. You’ll save $22,340 on your electricity bill in 20 years.

The payback period might be somewhat higher than in other states. In California, it’s about five years. However, that doesn’t lessen the value of your investment, especially if you consider it for the long term.

Should You Install Solar Panels in Florida?

Since you know the answer to how much do solar panels cost in Florida, another question comes to mind – is your investment worthwhile?

The quick answer is yes.

Installing a solar system is one of the best environmentally friendly ways to cover or supplement household energy needs. You’ll be reducing your electricity bill and helping the planet by minimizing pollution.

Solar power is a long-term investment and a household upgrade, so it should be viewed as such. In fact, there’s hardly another upgrade that can save you more than $22,000 in two decades.

Installing solar panels may provide instant equity by boosting the overall value of your property. Some studies show that the value of homes in Florida increased by about 4% with solar panels installed. And that number jumps to 4.6% in Tampa.

But when determining the size of your investment, you also need to calculate the licensing and inspection to get your panels approved. This is a one-time expense and it doesn’t add that much to the overall cost. Better yet, some municipalities may offer incentives that cover the total licensing fee.

Solar Panel Installation Requirements

In Florida, most installations tie into the preexisting electrical grid. The solar power output is directly connected to your home, and you don’t need battery storage. But it’s useful to install the battery anyway, if for nothing else than the auxiliary support it provides in case of an outage.

As mentioned, you need permits to proceed with the installation and it’s best to check for the requirements with your local utility company. Note that the process may require a lot of red tape. Ideally, the installation company will cover that part of the work for you.

Other than that, you’ll need the following:

You probably won’t install the solar panels on your own. However, it pays to know which components are necessary so you can make an informed choice. You may also save some extra money.

Professional installations get done pretty quickly; an average-sized home can be completed in one day, depending on the type and power of solar system you choose.

How Much Do Solar Panels Cost in Florida

What’s the Expected Lifecycle of Solar Panels?

Commonly, you get a guarantee of between 25 and 30 years for each panel with professional installation. However, that’s only a guarantee and it doesn’t mean your panels won’t work after the given period.

The actual lifecycle of a solar panel is about 20% longer, depending on the type and make of the panel you get. Also, you need to know that a panel’s output naturally decreases at the rate of 0.8% per year due to degradation of the solar cells. This degradation rate may alarm you, but there’s nothing to worry about.

Barring physical damage or inherent equipment flaws, your solar system will run at about 80% capacity even after two decades.

With professional installation, you’ll get a warranty for other elements in the system. Note that inverters usually last between 10-15 years.

If you get micro-inverters, you’ll benefit from a much longer lifecycle – 25 years or more. This is a better choice for contemporary systems, particularly in areas that are prone to shading because micro-inverters help produce more power when it’s partially shady.

Rebates and Incentives in Florida

In Florida, the Property Tax Exclusion applies to residential properties with renewable energy. So, you won’t be subject to higher taxation even though you have installed an upgrade on your home.

Additionally, the state has Solar and CHP (Combined Heating and Power) Sales Tax exemptions, which means there are no sales taxes when you purchase a new solar system. This takes about 6% off your purchase, making solar panels even more affordable.

Florida Buy-Back Rates

Florida is among the 47 states where you can sell surplus electricity you generate from your system. The policy was introduced back in 2007 to boost the state’s economy and save money through clean energy.

But how does this buy-back work in real life?

To give you a clear idea, it’s best to use FPL (Florida Power and Light Company) as an example. It’s the utility company that supplies power to most areas in the Sunshine State.

FPL introduced a net metering framework that compensates users for the energy produced, meaning the company gives you credit at retail rates.

For instance, if you use 1,000 kWh or less every month, you get 10.8 cents per kWh for the power your household consumes. This means that you can expect about $100 in credits on your electricity bill per month.

Federal Tax Credit

This is a governmental rebate system that currently allows you to save up to 26% on installing a solar system. To obtain this rebate, you claim a percentage of the system cost as a deduction on your IRS return for the next year.

Simply put, if the solar installation sets you back $10,000, you can claim $2,600 in rebates against your federal taxes.

This rebate program is excellent, but it won’t last indefinitely. When it was first introduced, the rebate was an impressive 30%, but it dropped to 26% for systems installed in 2020 and 2021. And the rebate will drop again to 22% for installations during 2022.

Right now, the rebate expires at the start of 2024. However, Congress may renew the program because the US government has made a commitment to promote the use of solar power and renewable energy.

What Affects Solar Panels’ Performance

Factors like the angle, orientation, and shade of the solar panels make the highest impact on their effectiveness. Ideally, you’ll be able to place the panels so they’re facing the sun throughout the day. There also shouldn’t be any obstacles, such as trees.

You also need to factor in irradiance, which is measured in kWh per m2 in a year. Basically, this is how many Peak Sun Hours your location gets each year. Peak Sun Hours is when the sun is at its zenith, allowing it to generate most power.

As for the orientation and the tilt angle, your panels should be facing south, at an angle between 45° and 60°.

Additionally, your panels need regular maintenance to ensure they provide optimal output. This involves cleaning every six months and a quick inspection to determine if all the elements of the system are working properly.

Lastly, heat is one of the biggest enemies of solar panels because it can seriously diminish their photosensitivity. Therefore, it’s necessary to provide sufficient air circulation to avoid overheating.

And remember that the effectiveness of solar panels naturally drops by about 0.8% a year. However, with the proper maintenance and installation, your panels will still provide more than enough power even after more than 20 years.

Utilize the Sunshine State

How much do solar panels cost in Florida?

To remind you, the average price is about $13,000 without any incentives. But the actual number isn’t that important. Solar panels are affordable to most homeowners in the Sunshine State.

What’s more, the local and federal government rewards your efforts to make the environment greener. So, you’ll be spending much less than expected. More importantly, installing solar panels saves you a huge amount in the long run.

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