Florida Solar Incentives, Tax Credits And Rebates Of 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.

Incentive	Description	Type	Occurrence
Federal solar tax credit	A nonrefundable tax credit worth 30% of the total investment	Tax credit	One-time
Property tax exemption	No increased property taxes from increased home value after installation	Tax exemption	Ongoing
Sales tax exemption	No sales tax on solar purchase	Tax exemption	One time
Solar loans	Financing options for solar panel installations	Loan	One time
Local incentives	Varies by location	Varies by location	Varies by location
Net metering	Credits for excess energy created and sent to the utility company	Bill credits and payments	Ongoing

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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.

Boynton Beach Energy Edge

This program offers eligible households a $1,500 rebate for installing a solar photovoltaic system that is 5 kW or larger. The system also has to offer at least 17.5% efficiency, though more is always good.

Beaches Energy Solar Water Heater Rebate

Beaches Energy offers a rebate up to $1,250 to customers when installing solar water heaters or making related energy-efficient upgrades. This company services the beach cities east of Jacksonville.

Keys Energy Solar Water Heater Rebate

Keys Energy offers rebates for efficient refrigerators, dishwashers and ceiling fans. Residential customers also get up to $450 for solar water heaters. This company services customers in the lower part of the Florida Keys.

New Smyrna Beach Solar Attic Fan Rebate

As the company name suggests, this utility services customers in and around New Smyrna Beach. This rebate program offers a return of up to 25% on solar attic fan installations. There are also available rebates for home EV chargers and low-flow toilets.

Other Rebates for Heaters and Fans

Several more companies also offer rebates for installing solar water heaters and solar attic fans. The value of these rebates differs depending on where you live and your specific provider.

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.

How to Enroll In Net Metering

The process to enroll in net metering in Florida can be a bit confusing, so let’s break it down into steps.

1. File an application: Florida energy providers typically have an online application form so you’ll want to apply with your local utility company to get started. Make sure to have all of the relevant information readily available, including your account number, address and details regarding your current system and meter. This process could also require a small fee.
2. Get an inspection: Once your application has been tentatively approved, the utility company should send someone over to inspect your current system. This is to ensure everything is in working order and that the system has been designed to work in both directions (sending energy to and from the company.)
3. Sign up: This one is easy. Sign the contract to get started. Make sure to have any outstanding questions answered before this point.
4. Replace the meter: Even if your system can send energy back to the company, you’ll have to replace the meter with one that measures excess power. This will allow the company to calculate the actual monetary impact on your bill. Some companies will replace the meter for free and others will charge a fee.

Now that you know solar incentives exist for Florida residents, here’s how to get started reaping those rewards. As always, contact your utility company or solar service provider for detailed and local information.

• Federal tax credit: This is done through the IRS by using something called Form 5695 during tax season. You can find the form on your own and add the relevant information to your tax documents after the panels have been installed. Your accountant can also help with this.
• Net metering: Contact your utility company to inquire about net metering. It’ll involve an application, an inspection and, typically, the installation of a new energy meter.
• PACE and SELF loans: You have to apply for these loans. Here’s the application form for PACE and one for SELF.
• Sales tax exemption: You don’t have to do anything for this one, except pay for the solar panel installation. The receipt should not have any mention of sales tax, saving you nearly a grand (on average.)
• Property tax exemption: Florida’s Property Tax Abatement for Renewable Energy Property program is extremely popular, as it waves the property tax increases typically associated with solar panel systems. Contact the Florida Department of Revenue at 850-717-6570 for more information or talk to your accountant.

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.

SYSTEM SIZE	SYSTEM COST	SYSTEM COST WITH FEDERAL SOLAR TAX CREDIT APPLIED
3 kW	$7,800	$5,460
4 kW	$10,400	$7,280
5 kW	$13,000	$9,100
6 kW	$15,600	$10,920
7 kW	$18,200	$12,740
8 kW	$20,800	$14,560
9 kW	$23,400	$16,380
10 kW	$26,000	$18,200

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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 panels 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.

For most homeowners, it is well worth the cost of going solar in Florida, especially given how sunny Florida is. While there aren’t free solar panels in Florida, you can get them at affordable prices—and make a lot of money back through tax credits, rebates and net metering. Plus, you can enjoy energy independence during power outages from tropical storms and hurricanes.

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.