What Is The Average Solar Bill In Florida?
Solar energy has become an increasingly popular option for Florida homeowners looking to save money on electricity bills and take control of their energy costs. Roughly 8% of the state’s households have already gone solar in recent years to tap into the abundance of Florida sunshine. This guide will provide a comprehensive overview of solar power in Florida, including average costs and expected bill savings, along with an outline of the process for installing solar panels.
Current Electricity Prices in Florida
Florida has some of the highest electricity rates in the country, with the average household paying over $100 per month on their electric bill. This is largely due to the state’s hot and humid climate, which results in high demand for air conditioning during the long summer months.
The average price per kWh for residential customers in Florida is around 12 cents. However, there is some variation across different utility companies and regions of the state.
For example, customers of Florida Power & Light (FPL), the state’s largest electric utility, pay an average of 10 to 12 cents per kWh. In Gulf Power’s service area, which covers the Panhandle region, rates average around 14 cents per kWh. Many municipal and cooperative utilities charge even higher rates, with some upwards of 15 cents per kWh.
Overall, Florida households use around 1,200 kWh of electricity per month on average. At 12 cents per kWh, a typical monthly bill would be around $120 to $150. With high air conditioning usage, summer bills can easily exceed $200 per month.
Rising utility rates, combined with abundant sunshine, make solar power an increasingly attractive option for many Florida homeowners seeking to cut electricity costs and gain more control over their energy bills.
Benefits of Solar Power
Going solar provides many benefits for Florida homeowners and businesses. Some of the main advantages of installing solar panels include:
Clean, Renewable Energy: Solar power harnesses energy from the sun to generate electricity. It does not create any greenhouse gas emissions or pollution. Switching to solar helps fight climate change and protects the environment.
Reduced Electricity Bills: Solar panels can cut your electricity bills by 50-100% by reducing the amount of power you need to buy from the utility company. The savings depend on your system size and electricity usage. Over 20-30 years, solar panels can pay for themselves from electricity bill savings.
Energy Independence: Producing your own solar electricity gives you control over your energy costs and reduces dependence on the utility company. You become insulated from rising electricity prices. Solar with battery storage provides backup power during grid outages.
Cost of Installing Solar Panels
The cost of installing solar panels on your home in Florida can range widely depending on system size, type of panels, batteries, the contractor you choose, your home’s energy use and other factors. However, on average for a residential solar installation, Floridians can expect an upfront system cost of around $17,000-$24,000 after tax credits. Here’s a breakdown of typical costs to purchase and install solar panels in Florida:
- $9,000 to $15,000 for solar panels (based on system size)
- $4,000 to $8,000 for inverters, racking, wires and other electrical hardware
- $2,000 to $5,000 for permits, inspection fees and any electrical upgrades or roof repairs needed
- $2,000 to $4,000 for installation labor
Adding a battery storage system will increase costs by around $7,000-$12,000 depending on battery capacity. Going solar is a significant investment, but the energy bill savings and tax credits available in Florida can make it feasible for many homeowners to recover costs within 5-7 years.
Solar Incentives and Rebates in Florida
Florida has several state and federal incentives designed to help offset the upfront costs of installing solar panels. These rebates, tax credits, and other savings can reduce a solar system’s payback period.
The most lucrative incentive is the federal solar investment tax credit (ITC). This provides a 26% tax credit for systems installed in 2022, which will reduce to 22% in 2023. There is no maximum limit on the federal ITC.
Florida also offers a rebate program called the Renewable Energy Technologies Grants Program. This provides rebates up to $20,000 for solar PV systems installed at homes, businesses, schools, and government buildings. The program accepts applications in competitive funding rounds.
Some utilities like Florida Power & Light also offer rebates to customers who install solar. These local utility rebates can range from a few hundred dollars up to $1,500 in certain cases.
Additionally, many counties, cities, and towns in Florida have their own solar incentives, such as property tax exemptions or solar permits/fee waivers. Checking for local incentives is advisable.
In total, Florida solar incentives can offset around 30-40% of the installation costs. Combining local, state, and federal incentives provides substantial savings and a faster payback on a solar energy system investment.
Electricity Bill Savings
Installing solar panels in Florida can lead to significant savings on your monthly electricity bills. The exact savings depends on several factors, including your electricity usage, system size, electricity rates, and more. However, most homeowners see a reduction of 50-100% in their electricity bills after going solar.
On average, a 6kW solar system covers about 75-80% of a typical household’s electricity usage in Florida. For a home that uses 1,200 kWh per month, this could mean a reduction of $100-$150 per month on the electricity bill. With net metering, excess solar electricity produced during the day flows back to the grid, offsetting usage at night. This allows solar customers to maximize the bill savings from their system.
To calculate potential electricity bill savings, you’ll need to know your average monthly energy consumption and compare it to how much electricity a solar array can produce in your area. Online tools like the Google Project Sunroof calculator can provide estimated solar production and savings customized for your roof and location.
It’s also important to account for future electricity rate increases. Utility electricity prices have been rising 6-7% per year in Florida, and are projected to keep increasing. With a solar system, you essentially lock in much of your electricity costs for the 25+ year lifespan of the panels. So the long-term savings of solar are even greater than the immediate reduction to your energy bills.
In summary, most Florida homeowners with solar panels see a 50-100% reduction in their monthly electricity bills. This stable, long-term savings is one of the biggest incentives for going solar.
Solar Loan and Financing Options
One of the biggest considerations with going solar is how to pay for the system. While solar panels will save money over time through lower electricity bills, the upfront cost can be daunting. Thankfully, there are financing options to help spread out solar costs over time.
One option is a home equity loan or line of credit, which uses your home’s equity as collateral. Interest rates are usually lower than a regular personal loan. This allows you to borrow against the value of your home to pay for solar panels. But it also puts your home at risk if you default.
Solar loans provided by solar companies are another alternative. Interest rates are competitive and terms usually range from 10-20 years to match the lifespan of a system. This spreads payments out so they’re less than projected utility savings each month. Loans can cover solar panels and installation costs upfront so you immediately benefit from lower bills without paying the full amount at once.
Solar leases and power purchase agreements (PPAs) allow you to host solar panels on your property while a solar provider retains ownership. You pay a monthly fee based on the system size that’s usually lower than your current utility rate. At the end of the contract term, typically 20-25 years, you can extend the agreement, have the panels removed or buy the system at fair market value.
The various solar financing options make it possible for homeowners to adopt solar energy even with limited funds. Consult with solar providers to find the best model based on your financial situation and goals.
Factors That Impact Solar Savings
The amount you can save by going solar in Florida depends on a variety of factors like your electricity usage, solar panel system setup, amount of sun exposure, and more. Understanding what affects potential savings can help you maximize the financial benefits of installing solar panels.
Your electricity usage is one of the biggest factors. The more energy you consume, the higher your electric bills will be and the more you can save by generating your own solar power. Larger households with high energy demands will likely achieve greater savings compared to smaller households.
The size of your solar panel system plays a role too. More solar panels and higher system capacity means more energy generation. But larger systems also cost more upfront, so finding the right system size for your home’s needs is ideal. Systems in Florida are usually sized between 3-10 kilowatts.
Sun exposure is critical for solar panel productivity. Solar panels need direct sunlight to effectively produce electricity. Homes with unshaded south-facing roofs get the most sunlight and maximize solar panel output. Partial shade can drastically reduce energy production.
The direction your roof faces also impacts savings. South-facing roofs are optimal in Florida for solar gain. East and west-facing roofs work too but produce less total energy. North-facing roofs typically don’t get enough sun.
Your region’s electricity rates make a difference. Higher utility rates mean greater savings opportunities with solar since the rates you offset are higher. Generally, electricity prices are on the rise, so solar savings will climb over time.
Florida’s climate and weather are well-suited for solar with abundant sunshine and minimal temperature extremes. This allows solar panels to operate very efficiently throughout the year.
Understanding these variables can help Florida homeowners predict potential solar savings more accurately and design an optimal system for their home. Proper solar panel siting and sizing along with energy efficiency measures can maximize financial returns.
Going Solar – Process and Timeline
Going solar is a major home improvement project that requires careful planning and preparation. Here are the typical steps involved in installing solar panels on your home in Florida:
Consultation and Site Assessment – The first step is to request quotes from reputable local solar installers. They will assess your site and usage to determine the optimal system size. They should provide a detailed proposal outlining projected costs, savings, incentives, and financing options.
System Design – If you decide to move forward, the solar company will create a customized system design for your home, maximizing sun exposure and energy production. They’ll obtain the required permits and handle all paperwork.
Installation – Once permits are secured, installation typically takes 1-2 days for a 3-5kW residential system. Solar panels are mounted on your roof or ground, then connected to your electrical panel.
Inspection – Your city will inspect the completed installation to ensure it meets code requirements. Your solar provider will work with inspectors as needed until the system passes.
Utility Approval – Before final approval, your utility company will inspect the system and replace your existing meter with a special solar-ready meter.
Operation – Once approved, you can start generating clean solar energy for your home! Your installer will explain monitoring, maintenance and how to gain maximum savings.
The entire process usually takes 4-6 weeks from design to completion. With proper planning and a reputable installer, going solar is a smooth process resulting in energy bill savings for decades to come.
Summary of Key Takeaways
In summary, most homeowners in Florida who install solar panels end up saving 20-30% off their monthly electricity bill. The average savings for a 5kW solar system range from $80-$120 per month. With typical solar installation prices between $10,000-$20,000, the payback period ends up being 6-10 years for Florida homes.
The exact solar savings depend on system size, electricity usage, utility rates, and other factors. Homeowners can maximize savings through solar incentives, rebates, and financing options. While solar in Florida makes financial sense for most homeowners, it’s important to evaluate your specific situation.
By going solar, homeowners gain energy independence, hedge against rising electricity rates, increase home value, and benefit the environment. We hope this guide provided useful information to help Florida residents decide if solar is right for them.
