Are you thinking of getting off-grid clean energy in Florida? Solar power can lower your energy bills by more than 70%. However, the upfront costs can be high. So, does solar installation have any economic benefits in Florida? Here, we look at the return on investment (ROI) of installing solar in your home.
Upfront Expenses of Installing Solar Panels in Florida
The upfront costs refer to the price you pay before using solar energy in your Florida home. These costs comprise the price of the solar panels and labor. While slight variations exist, depending on solar brands and installation companies, the average cost of solar power in Florida is $2.65 per watt before tax incentives. The price drops to $1.95 per watt after tax credits and other incentives.
Since most homes in Florida require a 5kW or 6kW solar system, the average upfront cost of acquiring a solar panel is between $13,250 and $15,900. This cost can drop to between $9,750 and $11,700 after tax incentives. Labor cost in Florida is about 25% of the total cost of the solar panels. The labor costs may vary, depending on the installation company. While DIY installation kits are available, you require a certified installation company to qualify for some tax incentives.
Florida Solar Tax Credits and Rebates
Florida has attractive incentives for homeowners who wish to go solar. In addition to a 30% federal tax credit, you qualify for a 6% sales tax exemption when you install solar in Florida. You may also benefit from Florida’s net metering system for any excess power generated by your solar panels.
Average Energy Cost Savings for Florida Homeowners
Calculating the energy cost savings can be tricky due to electricity cost fluctuations. However, you can work with your average monthly bill for the last 12 months to calculate your savings after solar installation.
The average Florida home spends about $278 per month on electricity bills. If your solar panels can offset 90% of the monthly electricity bill, your energy cost savings are $250 per month.
Solar Payback Period
You can estimate the solar ROI or payback period by dividing the total upfront expenses by annual energy cost savings. For instance, if the total installation cost is $15,000 for a 6kW solar system, your payback period is 4.5 years (15,000/278*12). After four and a half years, you will have recovered all the upfront expenses. If your solar panels last 25 years, you have about 20 years of almost free energy.
Installing Solar Increase Home Value
Solar installation increases the value of your home. That means you can sell your home at a higher profit after solar installation. Better still, the increased value is 100% tax-exempt. It’s also a smart decision to add solar panels to your investment property since it can attract more renters and lead to a higher rent.
Enjoy a High Solar ROI With Solar Optimum
Although solar installation costs can be high, you can recover the costs in less than 10 years. After the payback period, you enjoy electric energy at almost zero cost. The energy savings and short payback period translate to a positive ROI, giving you a reason to go solar today. Contact us today for a free solar panel estimate, or download our Ultimate Guide to Going Solar.
