Florida Solar Incentives, Tax Credits & Rebates (2024 Guide)
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Florida is an excellent state for solar energy. The Solar Energy Industries Association (SEIA) ranks it third in the country for solar installations, and it receives about 230 days of sun per year.
Florida solar panel systems cost an average of $10,880–$14,720, which is cheaper than the national average solar panel cost. However, Florida offers several solar incentives, credits, and rebates to reduce your solar installation costs. This guide highlights the available federal, state, and local solar incentives in Florida and recommends some of the state’s best solar companies.
What Are the Available Florida Solar Tax Credits and Rebates?
Florida offers several solar incentive programs to make solar power systems more affordable. While some programs are available to all Florida residents, others vary by city, municipality, and utility company.
You must purchase your system outright or choose a solar loan to qualify for Florida solar incentives. Leasing your solar system will disqualify you from the federal solar investment tax credit. Power purchase agreements (PPAs) will also disqualify you, but this payment option is prohibited in the state of Florida.
Below is an overview of solar credits and rebates available to Florida residents.
Florida Property-Assessed Clean Energy (PACE) Financing
Florida’s Property-Assessed Clean Energy (PACE) program allows Florida homeowners to borrow money for renewable and energy efficiency upgrades. These loans help households that are financially ineligible for traditional loans find more reasonable loan options through the state.
PACE loans last 10–20 years. Repayments are attached to your annual property tax bill at a fixed interest rate. PACE repayments connect to the property, not the owner, so if you sell your property, those repayments become the next owner’s responsibility. All Florida residents are eligible for PACE financing.
More resources: Visit Florida’s PACE website for full details and qualifications.
Property Tax Abatement for Renewable Energy Property
Installing a solar energy system does more than reduce your electric bills—it can also increase your home’s value. Normally, this would increase your property taxes, but Florida has a 100% property tax exemption for residential solar panel systems. This allows Florida residents to benefit from the added property value without the added taxes.
More resources: Check the official statute or Database of State Incentives for Renewables and Efficiency (DSIRE) for more information about the Florida Property Tax Abatement for Renewable Energy Property.
Solar and CHP Sales Tax Exemption
This law states that Florida residents won’t have to pay sales tax for a solar panel system. The exemption covers solar equipment, such as panels, batteries, inverters, rooftop solar racking, and other accessories. The tax exemption happens at the point of sale, not as a rebate or cash-back credit. All equipment must be certified by Florida Solar Energy Center.
More resources: Check the Florida Department of Revenue website or DSIRE for full details on Florida’s tax exemption.
Local Incentives
Homeowners should check for local rebate programs from their city or utility company. Below are a few examples of local incentives:
- Boynton Beach Energy Edge Rebate Program: The Energy Edge program offers $1,500 for solar system installation per property. You can claim this rebate every 10 years, and it’s offered on a first-come, first-served basis.
- Dunedin Solar Energy Rebate Grant Program: Dunedin residents receive a solar grant for $0.25 per watt of solar power generated, up to $2,500. This cash-back program is also first come, first served.
- Lakeland Electric Battery Incentive Program: Lakeland Electric solar customers can receive a 50% rebate for energy storage systems up to $1,000. Battery storage must provide a minimum of 6 kilowatt-hours (kWh) of usable capacity and include a warranty of at least 10 years or 5,000 cycles. Customers must apply and receive approval for the battery before installation.
More resources: Search DSIRE for additional programs, or check with your local municipality or utility company.
Net Metering
Florida offers a net-metering program that allows you to return excess energy your system generates to the power grid. In exchange, you receive a 1:1 credit toward your electricity bill, which offsets energy costs at night when solar panels are inactive. Unused credits roll over each month to help lower future energy bills. Thanks to the Florida Public Utilities Commission (PUC), net metering is required throughout the state.
Florida net-metering programs must pay credits equal to the full retail rate. Each extra kWh generated equals 1 kWh pulled from the grid. The following major utility companies offer net metering in the state:
- Duke Energy
- Florida Power and Light (FPL)
- FPL Northwest FL (formerly Gulf Power)
- Tampa Electric (TECO)
Other utility companies and electric cooperatives offer net-metering programs, but they aren’t regulated by state law. These payout rates will differ between companies, so review the terms to learn more about each program.
More resources: Check your utility company’s website for more details or visit the DSIRE website for Florida’s net-metering policy
How Does the Federal Solar Tax Credit Work?
Floridians should also consider applying for the federal solar tax credit, now known as the Residential Clean Energy Credit. Thanks to the 2022 Inflation Reduction Act, homeowners can receive up to 30% back for their solar system costs as a federal tax credit. This credit helps reduce or eliminate your owed federal income taxes during tax time. Full payment or solar loans qualify you for the federal tax credit.
This tax credit will drop to 26% in 2033 and reduce to 22% in 2034. It’s set to conclude in 2035 unless Congress renews it.
Roughly 64% of our 1,000 survey takers took advantage of the federal tax credit when buying their solar panels.
Our Conclusion
Solar incentives make converting to solar energy more affordable for Florida homeowners. Along with federal and state programs, savings through local cities or utility companies could lower your installation costs even more. Your chosen financing options affect your eligibility, so weigh your options to consider potential savings.
Use the tool below to find local Florida solar companies. Here are our top picks for providers:
- Freedom: Freedom solar offers high efficiency solar panels and full service installation for Florida homeowners.
- Blue Raven Solar: Offers the best benefits, including 18 months of free solar
FAQ About Solar Tax Incentives in Florida
What is a solar incentive?
Solar incentives are financial or regulatory programs designed to encourage solar energy use. These incentives take several forms, including tax credits, rebates, property tax exemptions, and net-metering programs. Incentives lower the cost of solar panels, making conversion more affordable. They vary by state or city and may change over time.
Is it worth it to go solar in Florida?
Yes, going solar in Florida is worth the investment since Florida receives about 230 days of sun annually. In addition, the state offers several solar incentive programs to make installation more affordable. Using solar panels in Florida could lower your energy bills, reduce your carbon footprint, and increase your home’s value.
What is the Florida 30% solar tax credit?
The federal solar tax credit allows homeowners to claim 30% of solar panel installation costs on their federal taxes. This credit includes the solar system, battery storage, labor, and other associated installation costs.
Does Florida offer a state solar rebate?
No, Florida does not offer any statewide solar rebates. Local or utility company rebates may be available for solar installations in some areas. Check with your local authorities or utility companies for the most up-to-date information.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
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