Are Solar Panels Worth It in Florida?

9 factors to consider before getting solar panels in Florida

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including many from Florida. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Your energy consumption

3. If you need a battery

4. Florida solar incentives

5. Net metering buyback rates

6. Your utility provider

7. How you pay

8. How long you stay in your house

9. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000 or more

Average solar panel costs in Florida are comparable to the national average. A typical 7-kW costs $15,375. However, most Florida homeowners need a system larger than that to offset their energy consumption.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Florida, the average cost per watt is $2.20.

Solar panel costs by system size in Florida

2. Your current energy consumption

A typical Florida household needs a 14.4 kW system to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

It’s smart to get your electrical loads as low as possible before going solar (i.e., upgrading older appliances). That way, you can get a smaller system, which will be cheaper overall.

Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. For Edward in Tampa, solar keeps his electric bill below $50. James in Orlando said that his bill is “zero.”

3. If you need a battery

Solar storage batteries are great because they can keep your lights on even when the sun isn’t shining. They also give you more energy independence. The downside is that they are expensive: Solar batteries are typically priced between $7,000 and $18,000, but some are $30,000 or more.

The extra cost may be worth it, depending on where you live. “Living in South Florida, power outages are a real issue after a hurricane, so we also included a battery to give us the ability to store power,” Kim and Dan in West Palm Beach told us.

Pro tip: Look closely at your utility’s net-metering rules first before deciding whether a battery is worth the extra $7,000 to $18,000.

4. Florida solar incentives

The 30% federal residential solar tax credit has expired and, ironically, solar policies in the Sunshine State are less generous than those in California or New York. There are currently two main solar tax breaks:

• Sales tax exemption: Eligible solar equipment is exempt from Florida sales tax.

• Property tax break: Adding qualifying solar or battery equipment generally won’t increase your property taxes through 2037.

» MORE: Solar incentives in Florida

5. Net metering in Florida

One of the biggest reasons solar can make sense in Florida is net metering. If your panels produce more electricity than you use, you can send the extra power to the grid and get bill credits for it.

For customers of major utilities, those credits are generally less than the full retail rate, which can make a real difference in how much you save over time.

Michael in Jacksonville, a JEA customer for decades, switched to JEA’s SolarSmart program in 2021, “but due to the changes in the net-metering rates it didn't make financial sense,” he told us. Adam in Windermere told us his monthly bill went from $11 to $38 “just because we don’t use enough energy from the grid.”

6. Your local utility provider

For some, like Brigitte in Weston, going solar is definitely worth it for the ability to “cut out FPL.” But James in Orlando told us about a frustrating experience with Duke Energy.

“Duke Energy, who is our electricity provider in Florida, instituted a minimum charge on electric bills, which was frustrating given that that wasn't information that we had known prior nor had expected. So, that impacted how we think about the payback period,” James said.

Still, he emphasized the positive impact of “doing good in the world. We're excited to be doing a small part to help drive towards a greener environment.” Ronald in St. Augustine had a similar experience with Florida Power & Light Company.

7. How you pay

It’s great if you can pay for the whole thing upfront. Of course, cash isn’t always an option. That’s when loans and leases come into play.

• Solar loans work like any other type of loan. Once you pay it off, you own your system outright. Florida homeowners may be eligible for a few special financing options:

  • SELF loans: This nonprofit offers solar loans up to $50,000, with rates starting at 5%.

  • Florida Keys Electric Cooperative: Eligible customers may be able to borrow up to $35,000 for solar projects.

  • PACE financing: Some homeowners may also qualify, depending on where they live.

• Solar leases work like a car lease in that you get to use the panels but don’t own them. They are usually much cheaper upfront.

8. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost. The average solar payback period in Florida is about 11.14 years.

If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow.

But you miss out on some of that $51,910 in total avoided utility costs over 25 years.

In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

9. The solar company you hire

In the best-case scenario, it’s easy to make the switch and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.

Consider what happened to Susan in The Villages: “We spent a fortune on solar 4 years ago. All went fine while we were being sold to. All went fine with the solar. The problem comes down the road when you try to deal with this company. We were told that when we changed the roof (which was going to need to be done soon) that they would remove and replace the panels free.” In reality, it cost $5,000.

“When we found a cheaper bid, they told us that we would no longer be covered under warranty because they didn't do the replacement,” she said. “We were promised several things but the company never did them. They were terrible to deal with. Would absolutely want to warn people.”

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Florida averages 3.5 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? Florida (and the rest of the United States) is in the northern hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in Florida

Going solar has many benefits — in Florida and elsewhere — such as lowering your carbon footprint and reducing your energy bills, but there are also some potential disadvantages.

Find solar companies in Florida

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Florida’s top solar companies to learn more.

Florida solar FAQ

Bottom line: Is going solar in Florida worth it for you?

Going solar in Florida might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: Florida and nearby states