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 several from Alabama. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. If you need a battery
3. Your energy consumption
4. Florida solar incentives
5. Your utility provider
6. Net metering buyback rates
7. How long you stay in your house
8. How you pay
9. The solar company you hire

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

Average solar panel costs in Florida are comparable to the national average. Expect to spend $7,945 to $22,700 for panels that last about 25 years. Over that same time period, you’d avoid approximately $56,077 in total utility costs.

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 $2.27.

Average solar installation cost by system size in Florida

2. 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: $7,000 to $18,000.

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.

3. Your current energy consumption

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

A typical Florida household needs a 10.75 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.”

4. Florida solar incentives: federal and state

Ironically, solar policies in the Sunshine State are less generous than those in California or New York. There are currently only a few statewide initiatives, but the federal solar investment tax credit (ITC) is the most significant incentive for a lot of homeowners going solar. The ITC provides a 30% tax credit on your total system costs, including equipment, labor and permits.

The ITC drops to 26% in 2033 and then 22% in 2034.

The credit does not work the same as a rebate, as Ben in Miami found out. He thought the federal government would send a check reimbursing him for 30% of his solar installation costs, around $12,000. A tax credit only subtracts from the amount you owe the federal government in taxes. It’s not helpful if you don’t pay federal income taxes in the first place.

» EXPLORE: Florida solar incentives

5. 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.

6. Net metering in Florida: decreasing buyback rates

Net metering lets you sell extra energy generated by solar panels back to the local power grid. In Florida, this earns you credits that lower your electric bill. Some residents accumulate enough credits to almost fully cancel out their electric bills.

However, Florida is gradually decreasing the value of net metering credits. From January 2024 to December 2025, residents will earn a 75% energy usage credit for their excess energy production. These rates decrease to 60% in 2026 and 50% in subsequent years. So, the sooner you get started, the better.

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.”

» GREENEST STATES: Florida ranked 32nd in 2024

7. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 10.5 years on average in Florida. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

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 $56,077 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.

8. How you pay

It’s great if you can pay for the whole thing upfront. You own the system from day one and receive the benefits of available tax credits; plus, you don’t have to pay interest on a loan. Of course, cash isn’t always an option. That’s when loans and leases come into play.

• Loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Leases: A solar lease works like a car lease — you get to use the panels but don’t own them. They are usually much cheaper upfront, but you won’t be eligible for the federal tax credit.

Monthly costs: solar payments vs. savings

Think of going solar in terms of your monthly costs. Given rising energy costs in Florida and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway. Solar panels essentially generate free electricity once the initial installation costs are paid for.

» SOLAR PANELS: Lease vs. buy?

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.”

Do your own research

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. Use NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

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.

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