Installing solar panels on your home in Florida can help reduce your electricity bills and lower your carbon footprint. While buying and installing solar panels outright can be expensive, there are a few ways Floridians can get free or discounted solar panels.
Federal Tax Credits
One of the best incentives for installing solar panels is the federal solar tax credit. This provides a tax credit equal to 26% of the cost of installing a residential solar array in 2022-2023. So if you spend $15,000 to install solar panels on your home, you can claim a credit of $3,900 on your federal taxes. The tax credit applies to both property owners and renters.
To claim the federal solar tax credit, you’ll need to file IRS Form 5695 with your tax return. You’ll also need documentation showing the costs of purchasing and installing the solar array. Work with your solar installer to get an itemized invoice. The solar panels must be installed in the tax year you are claiming the credit.
State Solar Incentives
Florida offers several statewide incentives for going solar:
- Solar Energy System Incentives Program – This provides rebates up to $20,000 for installing new solar arrays on your home. The program is administered by the Florida Department of Agriculture.
- Solar Energy System Tax Exemption – This exempts 80% of the taxable value of a solar array installed on residential property. This can save you hundreds in local property taxes.
- Net Metering – Florida requires utilities to provide net metering, which allows solar customers to get credit for excess electricity sent back to the grid. This can help offset your electric bill.
Check out the Florida Solar Energy Center’s website for details on all the state solar incentives. The Database of State Incentives for Renewables & Efficiency is another good resource.
Utility Rebates
Many municipal utilities and electric cooperatives offer rebates or other incentives for installing solar panels in their service territories. For example:
- Orlando Utilities Commission – Up to $2,000 rebate
- Gainesville Regional Utilities – Up to $2,750 rebate
- Lakeland Electric – Up to $2,500 rebate
- Florida PACE – Offers low-interest financing for solar arrays through property assessments
Contact your local utility to ask about any solar incentives or rebates they offer. Some utilities also have net metering and interconnection policies favorable to solar customers.
Solar Leases and PPAs
Third-party ownership is another popular way to go solar with little to no upfront costs. This allows a solar company to install a solar array on your roof for free, in exchange for a long-term contract to purchase the power produced. The two most common models are:
- Solar Lease – You lease the solar panels installed on your home for a monthly fee, typically 10-20% less than your current utility rate.
- Solar PPA – A Power Purchase Agreement where you pay a fixed rate for the solar electricity without buying the system.
Companies like SunRun, Tesla, and SunPower offer $0 down solar leases and PPAs in Florida. While you won’t own the solar array, you’ll benefit from lower electric bills while avoiding large upfront costs.
Community Solar
If your rooftop isn’t suitable for solar panels, consider subscribing to a shared community solar array in your area. With community solar, you purchase or lease part of a larger shared array located offsite. You receive credit on your electricity bill for your portion of the power produced.
Some Florida utilities like Duke Energy, Tampa Electric Company and JEA have community solar programs available to their customers. You can save up to 10% on your electric bill by going solar without installing panels on your own home.
Solar Loans
As an alternative to leasing, you can take out a low-interest solar loan to finance the purchase of solar panels. Options include:
- Secured loans – Using your home as collateral to obtain a low rate.
- Unsecured solar loans – Financing options from solar loan providers and credit unions.
- PACE financing – Property Assessed Clean Energy loans repaid through property taxes.
- Energy Efficient Mortgages (EEM) – Roll the cost into a new home mortgage or refinance.
Solar loans allow you to keep ownership of your solar array while spreading out the costs over time. Interest rates are often lower than credit cards or personal loans.
Nonprofit Grants
Some nonprofit organizations and charities provide grants and donations to help low-income households afford solar panels. For example:
- Solar Energy International – Provides solar grants for community organizations.
- GRID Alternatives – Installs free or low-cost solar systems for qualified homeowners.
- The Solar Foundation – Connects nonprofits with corporate solar funders.
Research nonprofits and social enterprises in your area that are dedicated to solar access. Get on their list to be notified when grants become available.
DIY Solar
To drastically cut costs, some solar enthusiasts choose to take on installing their own solar arrays. If you have experience with construction and electrical work, this is an option. You’ll need to research local building codes and solar regulations thoroughly.
Sourcing used or refurbished solar equipment is one way to save money going the DIY route. You can find discount solar panels and equipment on sites like Craigslist, eBay, and wholesalers like EnergySage.
The nonprofit Solar Energy International offers online and hands-on workshops on DIY solar installations.
Crowdfunding
Some homeowners have had success raising funds for solar projects through collective giving campaigns. You can set up a crowdfunding page through sites like GoFundMe, Fundly, or Indiegogo to share your solar story.
To improve your chances of meeting your solar fundraising goal, offer rewards for different contribution levels. Highlight how your project will benefit the community and environment.
Join a Solar Co-Op
Joining a solar co-op allows a group of homeowners to negotiate a discount bulk purchase from an installer. Typically, the co-op issues a joint Request for Proposals to contractors. Once selected, the installer will provide each co-op member with an individual proposal for their home.
Solar co-ops can help members save up to 20% off the cost of going solar thanks to volume discounts. Find a solar co-op in your region through the Florida Solar Energy Industries Association.
Comparison Table of Florida Solar Incentives
Incentive | State/Utility/Nonprofit | Amount |
---|---|---|
Federal Solar Tax Credit | Federal | 26% of system cost |
Solar Energy System Incentives Program | State of Florida | Up to $20,000 rebate |
Solar Energy System Tax Exemption | State of Florida | 80% property tax exemption |
Utility Rebates | Municipal utilities/electric co-ops | Typically $1,000 – $2,500 |
Solar Leases/PPAs | Third-party solar providers | $0 down with lower electric rate |
Community Solar | Electric utilities | Up to 10% savings on bill |
Nonprofit Grants | Nonprofits/charities | Free panels and install |
Crowdfunding | Public contributions | Variable fundraising goal |
Solar Co-ops | Solar co-op members | Up to 20% discount on install |
Conclusion
While solar panels can have high upfront costs, there are many incentives, rebates, tax credits and financing options that allow Florida homeowners to go solar for free or at steep discounts. Taking advantage of these solar programs allows you to lock in long-term energy savings while supporting clean energy in the Sunshine State.
The first step is researching all the solar incentives available in your utility service area. Next, get multiple quotes from solar installers that can explain how to capitalize on these programs. With persistence and proper planning, you can strategically stack solar incentives to maximize your savings going solar.
Installing solar panels on your Florida home is a wise long-term investment in protecting yourself from rising energy costs. While not free, many great funding opportunities exist to make going solar much more affordable and achievable.