Florida Solar Incentives, Tax Credits And Rebates Of 2024 (2024)

Florida solar incentives include the federal tax credit, multiple tax exemptions, local rebates and loan programs and even net metering. These incentives will help you save money on installation or recoup some of the investment; you’ll also want to research the best solar panel companies in Florida to ensure you’re getting the highest quality at the fairest price.

Federal Solar Tax Credit

While Florida doesn’t have a state solar tax credit, everyone across the country can take advantage of the federal solar tax credit. Officially called the Investment Tax Credit (ITC), this allows taxpayers to recoup 30% of their total solar panel installation investment when they file their taxes. For example, if your total investment is $20,000, you’d be able to claim a $6,000 tax credit come filing season.

The tax credit is nonrefundable, so if the credit is larger than your tax liability, you won’t get a refund. Instead, any remaining balance from the credit will roll forward to the next tax year until you’ve used it completely.

The Investment Tax Credit won’t last forever but is set to reduce to 26% for the 2033 tax year and then 22% for the 2034 tax year. If Congress does not renew the credit before then, it will expire starting in 2035.

Property Tax Exemption

Floridians who invest in solar panels should expect the value of their homes to increase. According to Zillow, solar panels increase home values by roughly 4%. Normally, this would result in higher property taxes.

However, Florida’s Property Tax Abatement for Renewable Energy Property program prevents property taxes from going up for solar water heat, solar photovoltaics, wind power generation and geothermal heat pumps, as well as lithium-ion storage technologies. This program will expire at the end of 2037.

Sales Tax Exemption

Similarly, residents of the Sunshine State don’t have to worry about paying a 6% sales tax on their solar system installation as part of the Solar and CHP Sales Tax Exemption program.

With an average cost of a 6 kW solar system in Florida amounting to $15,600, that’s $936 avoided in sales tax.

Florida Solar Panel Loans

Floridians who need help financing their solar panel installation have access to the state’s Property Assessed Clean Energy (PACE) loan program. Only two other states—California and Missouri—have this program, which allows you to finance solar installations and pay them back with your annual property taxes.

PACE isn’t the only program to finance Florida solar panels, however. SELF solar system loans are available to low-income families (no credit approval required) for $3,000 to $25,000 at fixed interest rates between 7.99% and 8.25% over three to 10 years.

In addition, Floridians may qualify for more localized loans, such as the:

• Florida Keys Electric Cooperative solar loan program
• Lakeland Electric interest-free solar loan program
• City of Tallahassee energy-efficiency loan program

Local Incentives for Solar Power in Florida

You can find many incentives for Florida solar power at the local level, depending on your city and utility company. One of the best is the Boynton Beach Energy Edge rebate program: Eligible households an qualify for a $1,500 rebate for installing a solar photovoltaic system that is 5 kW or larger and is greater than or equal to 17.5% efficiency.

Several utility companies also offer rebates for installing solar water heaters and solar attic fans.

Net Metering In Florida

Florida has a net metering program that allows homeowners with solar panels to sell excess electricity generated to utility companies, in exchange for credits on future energy bills equal to the retail rate of electricity. At the end of the year, the utility companies have to pay customers for any unused credits, but the rate for unused credits is lower than the retail rate.

Regardless, most Florida homeowners generating solar power stand to not only eliminate their electric bills but earn some cash at the end of each year.

The cost of solar panels in Florida ranges from $7,800 for the average 3 kW system to as much as $26,000 for the typical 10 kW system. Prices will vary not just with the size of the system, but also with labor rates in your city, the slant and shape of your roof and the brand of solar panel that you choose.

To determine the type of solar system that’s right for your home, you’ll need to consider factors like your budget and brand preference, but also the type of roof you have and how much sunlight your home gets.

When you work with a trusted solar panel installer near you, you can rely on the contractor for recommendations on system type, size and brand.

Transitioning to solar panel offers Floridians several benefits, especially when you choose the best solar panels for your home. Here are some of the top advantages you can expect from switching to solar power:

Financial Savings

Solar power is an investment, but a good one. There’s a large upfront cost and some ongoing costs, such as monthly payments if you finance and the cost of annual solar panel maintenance. But you’ll also save a lot of money on utilities and, with net metering, may even earn money every year from the power your home generates. How much money do solar panels save? On average, we estimate $1,500 a year, before any earnings from net metering.

Environmental Benefits

Making money is nice, but making a difference is even nicer. (OK, maybe they’re equal…) When you switch to solar, you eliminate your reliance on fossil fuels, which are finite and terrible for the environment. And when you send excess energy to the utility company, you’re also helping others reduce their reliance on fossil fuels as well.

Energy Independence

If you store excess energy in a solar battery, you can easily power your house when the power goes out due to storm damage or other big events. Given that Florida gets hit with tropical storms and hurricanes every year, this is a major advantage.

Want to choose the best solar panel company for your solar installation? Start by reading reviews of top companies online and talk to friends, family, coworkers and neighbors who have made the switch to solar to get their input. Acquire at least three quotes from your top choices to get a feel for where you’ll get the best deal and fastest, highest-quality install.

Bottom Line

Solar panels can be a big investment, but they come with a big payoff—particularly in a sunny state like Florida, which has a great net metering policy and a huge need for energy independence during hurricane season. Act now, as many Florida solar incentives, including the federal solar tax credit, won’t be around forever.