The “Sunshine State,” Florida, offers a lot of potential for solar energy.
In this article, we will examine Florida’s solar incentives and evaluate them against those in other states on a scale of 1 to 10. (10 being the most solar-friendly state).
Quick Read:
- Florida provides refunds and exemptions from property taxes as well as other financial incentives for solar installation.
- Solar energy is a desirable alternative for homes in Florida because the cost of electricity there is marginally cheaper than the national average.
- Florida receives a score of 5 on a scale of 1 to 10, with little incentives and regulations.
Rebates and Property Tax Exemptions:
- Solar Incentive Program
- Amount: Varies by utility
- Type: Rebate program
- Description: Some Florida utilities offer cash rebates for solar installations. The rebate amount is based on the size of the system and the expected performance, and is designed to help offset the upfront cost of installation.
- Net Metering
- Amount: Varies by utility
- Type: Utility program
- Description: Florida’s net metering program allows solar system owners to receive credits on their utility bill for excess electricity generated by their solar system. The credits can be used to offset the cost of electricity purchased from the utility.
- Sales Tax Exemption
- Amount: 100% exemption on the sales tax for solar equipment and installation
- Type: Sales tax exemption
- Description: Florida offers a sales tax exemption for solar equipment and installation. This exemption applies to the purchase and installation of solar panels and related equipment.
- Property Tax Exemption
- Amount: Varies by locality
- Type: Property tax exemption
- Description: Florida allows localities to offer a property tax exemption for solar installations. The exemption is based on the added value of the system and can vary by locality. This exemption can help reduce the overall cost of owning a solar system.
- PACE Financing
- Amount: Varies by program
- Type: Financing program
- Description: Property Assessed Clean Energy (PACE) financing allows property owners to finance the cost of a solar installation through a property tax assessment. The financing is repaid through the property tax bill over a set period of time.
- Utility Financing Programs
- Amount: Varies by utility
- Type: Financing program
- Description: Some Florida utilities offer financing programs for solar installations. These programs can help make solar more accessible to customers who may not have the funds to pay for the installation upfront.
Average Cost of Electricity:
The average cost of electricity in Florida is slightly lower than the national average, making solar energy an attractive option for homeowners. According to the U.S. Energy Information Administration, the average retail price of electricity in Florida was 10.94 cents per kilowatt-hour in 2020, compared to the national average of 10.54 cents per kilowatt-hour.