The Cost of Solar Panels in Florida by Installer

Florida is known as the Sunshine State, and homeowners here stand to save a lot of money by going solar. Why? Because utility bills are high in Florida, thanks to high electricity costs and higher than average electricity consumption. We calculate that the average Floridian will need to install a 9 kW rooftop array to meet monthly energy needs and that this will cost in the region of $32,000 gross and around $21,000 after incentives.

Floridians consume a lot of electricity and pay a lot for it. The good news for Florida homeowners is that going solar here can help save thousands of dollars each year and pay for itself in less time than the national average. Installing a rooftop array also helps protect homeowners from utility price hikes. Given that the cost of electricity jumped more than 30 percent between 2021 and 2022, going solar at home in Florida is a smart move.

How much does home solar cost in Florida, though? By our calculations, most homeowners are looking at a price tag of around $32,000. Factor in the federal solar tax credit and other incentives and costs could be close to $21,000 net. This is higher than in many other places in the U.S., but Floridians stand to see significant return on their solar investment. In fact, the solar payback period in Florida could be lower than the national average of eight years!

Let’s dig into the data and look at what size array Floridians typically need, how much that costs, and how to shorten the payback period for solar in the Sunshine State.

The cost of home solar in Florida

As with many other parts of the country, Florida doesn’t offer state-level data itself but does provide it to the Lawrence Berkeley National Laboratory (LBNL). Instead of relying on online solar quote marketplaces, which we’ve seen to underestimate the cost of solar by around 63 percent, we use data from LBNL’s Tracking the Sun report for our calculations.

We also factor in the National Renewable Energy Laboratory (NREL) forecasts for the price of solar in 2023. The NREL gives a figure of $2.95 per Watt (DC) as the modeled market price (MMP) for the U.S. as a whole in 2022. This has worked out to be significantly lower than the cost of real-life installations in other states in the U.S., however, despite being higher than most online solar quotes.

Putting this all together, we estimate that the cost of solar in Florida in 2023 will be around $3.58 per Watt.

The average size of actual installations interconnected to the grid in Florida in 2021 was 9.96 kW. Our calculations suggest a size of 8.94 kW should meet all or most electricity needs for the average Florida household. With most online solar quotes using a 5 kW model for estimates, Floridians may be unpleasantly surprised at receiving a quote for home solar that is twice what they see online.

In short, while online quotes suggest a cost of around $12,900 for home solar in Florida, we expect homeowners will actually pay closer to $32,000.

Which Florida solar installers offer value for money?

Digging into the data from LBNL, we can check the average cost for solar arrays for every installer working in the state of Florida. This reveals some interesting differences in price, especially between some of the more popular and well-known national installers.

For instance, Tesla installations, of which there were 88 detailed for 2021, cost an average of just $23,337 and $2.31 per Watt. This is much lower than the overall average. Interestingly:

• 21 installations were sized at 3.2 kW and cost $8,640
• 8 installations were sized at 8.16 kW and cost $16,400
• 7 installations were sized at 16.32 kW and cost $32,800.

This kind of pattern strongly suggests that Tesla has a well-established pricing model for solar installations in Florida. It might also suggest a lack of customization for many installations, but this can create opportunities for homeowners to save with what amounts to an off-the-rack system.

In contrast, Blue Raven Solar (which has since been taken over by Sunpower) installed much pricier systems. The average cost of the 12 systems listed for 2021 was $45,634 at an average cost of $4.26 per Watt. Unlike with Tesla, Blue Raven Solar’s installations are all different sizes. The same is true for Momentum Solar, which installed 48 systems of all different sizes. The cost for these systems was closer to the average overall cost for the state.

As for Sunpower itself, which installed just 11 systems of varying sizes, the average cost was just a little higher than the overall average for the state.

Popular Florida solar installers

Several installers more local to Florida installed many more systems than the bigger national companies (with the exception of Tesla). Here’s a quick breakdown of some of the most popular solar installers in 2021 in Florida:

With the cost per Watt ranging from as low as $1.49 to $5.21, it’s easy to see how difficult it is to estimate how much solar will cost for every home in Florida. Some takeaways from this breakdown, though, include an indication that:

• Homes wanting smaller solar arrays under 6 kW might want to check out Sunnova Energy
• For larger installations, Conexsol Orlando looks like a good option for a quote
• Homeowners in Gainesville, FL, might want to look to Sun Ppm for low-cost solar installations
• Customers of Credence Energy Construction can expect to pay more (and get less efficient polycrystalline panels)

For data nerds like me, there is plenty to dig into in the LBNL file. You can search for installations with different brands of panels, of different sizes, and by installer, as well as by city and even utility. The upshot, though, is that while homeowners can estimate the cost of going solar at home, they won’t know the exact price until a qualified installer gets everything up and running.

How big a solar array do you need in Florida?

Floridians use a lot of electricity (nearly 14,000 kilowatt hours annually!) and pay more per kilowatt hour than many of their fellow Americans. This means utility bills are high in the Sunshine State.

Data from LBNL shows that the average size of residential rooftop arrays installed in 2021 was nearly 10 kW. That’s double the size usually used by online solar quote marketplaces. For most Floridians, a 5 kW array just isn’t going to cut it, and those online quotes won’t accurately reflect the cost of solar in Florida for most homeowners.

Using the SunWatts calculator, based on PV Watts data from the National Renewable Energy Laboratory, we calculate that the average Floridian will need an array of around 9 kW in size.

For homeowners with a backyard pool in Florida, expect to install a bigger solar array. By some estimates, homes with a swimming pool use around 3,000-4,000 kWh each year just pumping out the pool!

Lowering the cost of solar in Florida – tax credits, incentives, and tax exemptions

Florida offers a state sales tax on solar and a property tax exemption. In April, 2022, the state’s governor vetoed a bill that would have drastically cut net metering compensation (though some worry net metering will still soon be gutted in Florida).

For Florida homeowners thinking about going solar, rejoice in the many utilities and municipalities that offer solar rebates. Some smaller utilities have more generous rebates than statewide companies, and some offer rebates on solar battery storage (of up to $2,500 in some cases!).

Together, these Florida solar incentives help to cut the cost of going solar in Florida and shorten the solar payback period. Find out more about Florida state solar incentives here, and don’t forget you can also claim the 30 percent federal solar investment tax credit.

How much does electricity cost in Florida?

The Energy Information Administration (EIA) cites an average cost of 10.67 cents per kilowatt hour for residential electricity in Florida in 2021. In November 2022, however, the average cost had risen to 14 cents per kWh, demonstrating how Floridians relying on the grid are vulnerable to rising utility costs.

The actual amount homeowners pay for electricity in Florida will depend on their utility provider and individual tariff as well as how much energy they use each month. Most utilities charge more for electricity once a household reaches a certain usage threshold. Utilities also often charge different rates depending on the time of day and the season.

Much of the electricity consumed in Florida is used to run air conditioning to cool homes. If you have a well-insulated home that stays warm in winter and cool in summer, your bill may be much lower than average. And if you’re considering going solar, we always recommend home energy efficiency upgrades first. That way, you can get away with installing a much smaller, lower cost rooftop array! One of our recommended national installers, Elevation Solar, specializes in home energy audits and efficiency upgrades prior to installing solar.

EIA data suggests that an average Florida household consumes around 13,698 kWh of electricity each year. At a cost of 14 cents per kWh, that works out to $1,917.72 for electricity every year.

How much could you save by going solar in Florida?

Without factoring in inflation, if a homeowner sizes their array to meet those average electricity needs, savings could amount to:

• $9,589 over 5 years
• $19,177 over 10 years
• $28,766 over 15 years
• $47,943 over 25 years.

The rate of inflation in the U.S. in early 2023, however, is still high at 6.5%. Historically, the U.S. sees a rate of about 2.4% inflation. At that rate, homeowners may expect higher savings more in line with the following:

• $10,060 over five years
• $21,387 over 10 years
• $34,139 over 15 years
• $67,655 over 25 years.

Actual savings will vary depending on the amount of electricity a home solar array produces each month, the cost of electricity over time, and factors such as battery storage and net metering.

Putting it all together – Your solar payback period in Florida

The bad news for Floridians is that online home solar quotes of $12,900 are pie in the sky for most homeowners. The good news is that despite a higher upfront cost for a larger array, the likely solar payback period is still quite short in Florida.

Paying more upfront for a more productive array will, in the long-term, offer a greater return on investment. It will also help protect homeowners from being at the mercy of utilities and their ever-increasing prices.

We offer a few examples below of how the solar payback period might look in Florida, based on different array sizes, rebates, tax credits, and rates of inflation.

Assuming a 2.4% inflation rate, a small array and average energy use and costs

Gross cost of a 5 kW solar array = $3.58/Watt x 5,000 = $17,900

Utility rebate (average): $1,000

Subtotal: $16,900

Federal tax credit of 30% = $5,070

Net cost of solar = $11,830

Cost of electricity = $0.14 per kWh

Average electricity use= 13,698 kWh per year

Estimated cost of electricity for first 10 years = $21,387

Ten-year savings (assuming array meets 56% of electricity needs) = $11,977

Solar payback period = Just under 10 years.

Assuming a 6.5% increase in electricity costs each year and average electricity use

Gross cost of a 5 kW solar array = $3.58/Watt x 5,000 = $17,900

Utility rebate (average): $1,000

Subtotal: $16,900

Federal tax credit of 30% = $5,070

Net cost of solar = $11,830

Cost of electricity = $0.14 per kWh

Average electricity use= 13,698 kWh per year

Estimated cost of electricity for first 8 years = $19,325

Eight-year savings (assuming array meets 56% of electricity needs) = $10,822

Solar payback period = Just over 8 years.

Assuming a 2.4% inflation rate and average energy use and costs but a larger array

Gross cost of a 8.94 kW solar array = $3.68/Watt x 8,940 kW = $32,005

Utility rebate (average): $2,000

Subtotal: $30,005

Federal tax credit of 30% = $9,002

Net cost of solar = $21,004   

Cost of electricity = $0.14 per kWh

Average electricity use= 13,698 kWh per year

Estimated cost of electricity for first 10 years = $21,387

Ten-year savings (assuming array meets 100% of electricity needs) = $21,387

Solar payback period = just under 10 years.

Assuming a 6.5% inflation rate and average energy use and costs but a larger array

Gross cost of a 8.94 kW solar array = $3.68/Watt x 8,940 kW = $32,005

Utility rebate (average): $2,000

Subtotal: $30,005

Federal tax credit of 30% = $9,002

Net cost of solar = $21,004

Cost of electricity = $0.14 per kWh

Average electricity use= 13,698 kWh per year

Estimated cost of electricity for first 9 years = $22,498

Nine-year savings (assuming array meets 100% of electricity needs) = $22,498

Solar payback period = 8-9 years.

Assuming a 2.4% inflation rate, average energy use and costs, a larger array, but no rebates or tax credits

Gross cost of a 8.94 kW solar array = $3.68/Watt x 8,940 kW = $32,005

Net cost of solar = $32,005                    

Cost of electricity = $0.14 per kWh

Average electricity use= 13,698 kWh per year

Estimated cost of electricity for first 14 years = $31,466

Fourteen-year savings (assuming array meets 100% of electricity needs) = $31,466

Solar payback period = 14-15 years.

Assuming a 6.5% inflation rate and average energy use and costs but a larger array

Gross cost of a 8.94 kW solar array = $3.68/Watt x 8,940 kW = $32,005

Net cost of solar = $32,005             

Cost of electricity = $0.14 per kWh

Average electricity use= 13,698 kWh per year

Estimated cost of electricity for first 12 years = $33,312

Twelve-year savings (assuming array meets 100% of electricity needs) = $33,312

Solar payback period = 11-12 years.

Our calculations suggest that most homeowners can expect a solar payback period of around 8-10 years in Florida. Even homeowners who don’t qualify for rebates or the federal tax credit can expect to offset the upfront cost of solar through utility bill savings in less than 15 years. That means Floridians can enjoy more than a decade of truly free electricity from their rooftop array within their solar panels’ warranty, plus many more years of electricity production beyond that warranty period.

Final thoughts on the cost of going solar in Florida

The Sunshine State isn’t especially generous with regard to solar incentives. Nonetheless, going solar at home in Florida is still a great choice. A rooftop array will typically pay for itself in energy bill savings in 8-10 years.

This kind of solar payback period is fairly average for the U.S., but Floridians can then expect to see far higher savings thanks to higher than average energy use and electricity costs. Some homeowners might save more than $67,000 over just 25 years. For homeowners who install a smaller, low-cost array with, say, Sunnova, the payback period and overall savings could be even greater.

Solar savings are just one of the reasons to go solar in Florida, though. A rooftop array also creates greater energy independence and protection against rate hikes and power outages (depending on the system design).

To get started, check out the benefits of home solar and how to find a reputable solar installer.