Installing Solar Panels In Florida In 2025

There are now more than 219 gigawatts of installed solar energy capacity in the United States, according to the Solar Energy Industries Association (SEIA). However, these solar systems are not evenly distributed across the country. Several states are leaders in solar panel installations and growth, including California, Texas, Florida, Nevada, North Carolina, and Arizona. Florida solar panel installations are widespread and growing in popularity.

Florida has 17,055 megawatts of solar electric capacity, which is enough to power over 2 million Florida homes with solar panels. Four cities in Florida rank among the nation’s leaders in solar capacity in 2022: Jacksonville, Orlando, Tampa, and Miami.

Today, 8.1% of the power comes from solar panels in Florida, and more than 14,100 people are employed in the Florida solar energy industry. The state boasts the greatest solar irradiance in the eastern United States, so well-sited systems will have excellent solar energy output.

Because Florida is the number 3 solar market in the country, there are lots of opportunities for renewable energy professionals. Let’s explore why Florida is such a bright spot for the industry and why solar panel installations in Florida are so widespread.

Considerations for Florida Solar Panels

When exploring options for solar panels in Florida, homeowners and businesses often focus on how much they can save on electricity bills and the timeframe for their solar investment to pay off. While many Florida properties boast excellent solar potential, not every location is ideal for solar panel installation. It’s essential for solar companies to offer reliable and accurate guidance to ensure customers can make well-informed decisions about installing Florida solar panels.

Florida Electricity Rates

The average residential electricity cost in Florida is 14.2 cents per kilowatt-hour (kWh), slightly below the national average of 16.9 cents per kWh. Higher grid electricity costs make solar panels in Florida a more attractive option, as they reduce the payback period for a solar system.

Florida is served by several utility providers, including Florida Power & Light, Tampa Electric Company, Duke Energy Florida, and the Florida Public Utilities Company. Electricity rates can vary depending on the provider and location, so it’s important to consider these differences when evaluating the financial benefits of installing solar panels in Florida.

Florida Power & Light (FPL)

Florida Power & Light (FPL) is the largest electric company in the state, serving 11 million residents. Its service area covers the eastern coast of Florida, including cities like Miami, Fort Lauderdale, West Palm Beach, and parts of the greater Tampa Bay area.

Recognized for its dedication to renewable energy, FPL has made significant investments in Florida solar panel projects, solidifying its position as a leader in solar energy. The company offers net metering for customers with Florida solar panels, allowing them to receive credit for excess energy generated by their systems. The company continues to prioritize innovation and reliability to meet the evolving energy demands of its diverse customer base.

Evaluating A Property in Florida for Solar Panels

Despite having an excellent solar resource, some Florida properties have a lot of shading or other factors limiting solar energy development. For example, some properties do not have a good solar orientation, which results in lower solar energy output. Determine if there is too much shading during the site survey before getting too far into the process. This is also a good time to decide if the home needs an electrical panel upgrade or a new roof.

Also, 45% of Floridians live in properties with homeowners associations (HOAs). Therefore, many customers may need to get permission from the HOA for a solar project to move forward. However, the Florida Solar Rights Act does help protect your potential customers from solar ordinances, deed restrictions, and covenants that limit their use of solar equipment.

Qualifying For Florida Solar Energy Incentive Programs

Although there is a federal solar tax credit available for 30% of the installation cost, not all of your customers will qualify. For example, your customer must own the solar panels, so solar leases and power purchase agreements (PPAs) do not qualify. Also, the homeowner must have a sufficient tax liability to be able to apply the tax credit. If a Floridian cannot use the tax incentive, a solar lease or joining a community solar farm might be a smarter investment.

Florida Solar Panel Incentives

There are several programs available in the state of Florida that make solar electricity more affordable. However, the Sunshine State does not have an active Solar Renewable Energy Credits (SRECs) market, Renewable Portfolio Standard (RPS), or solar rebates.

Net Metering in Florida

Net metering laws for Florida solar panels require utility companies to compensate customers for excess energy generated by their systems and supplied to the grid. This allows homeowners and businesses in Florida to maximize the value of their solar systems without the need for solar batteries.

Utilities offering net metering in Florida include Florida Power & Light, Duke Energy Florida, Tampa Electric, and the Florida Public Utilities Company, helping customers reduce energy costs while supporting the grid with clean energy.

Florida Solar Panel Sales Tax Exemption

Florida does not collect sales tax for various types of solar panel systems, including solar photovoltaics (PV), solar pool heating, and solar water heaters. This renewable energy incentive can reduce the total cost of going solar by 6%.

Florida Solar Panel Property Tax Exemption

Although installing a renewable energy system on a residence can significantly increase the home value, it won’t impact a home or business’s property taxes. This Florida property tax abatement law applies to wind turbines, geothermal heat pumps, solar PV panels, and lithium-ion solar batteries.

Federal Incentives For Installing Solar Panels in Florida

As mentioned above, Florida homeowners and businesses may be eligible for the investment tax credit (ITC), which can lower the total cost of installing solar panels by 30%. The ITC applies to the cost of all solar equipment, such as solar panels, inverters, racking systems, and batteries.

Therefore, a $20,000 solar energy system can qualify for a $6,000 federal tax credit if the client has sufficient tax liability. Also, your Florida solar customers will see the benefits of the income tax credit when they file their taxes for the given tax year, so it isn’t immediate. It’s worth encouraging clients to work with a licensed tax professional to ensure they’re getting the most benefit from the tax credit.

Frequently Asked Questions About Florida Solar Panels

Let’s explore some common questions about using solar electricity in the Sunshine State.

What is the average cost of installing solar panels in Florida?

The average cost per watt for a residential solar panel system in Florida in 2025 is $2.11 per watt before incentives. That means that the total upfront cost of a 5-kW rooftop solar panel system in Florida is around $10,570. The cost of installing solar panels in Florida is a bit lower than the national average, which is $2.75 per watt in 2025, according to EnergySage. Many homeowners can obtain solar loans and pay the cost of Florida solar panels over time.

What is the payback period for solar panels in Florida?

The average payback period for a Florida solar system is about 7.5 years, assuming your client can use the solar ITC. This also assumes they have a pretty good solar resource and can take advantage of Florida net metering programs.

Should homeowners in Florida install solar batteries?

The price of solar batteries has fallen in recent years, but they can still add $10,000 or more to the cost of a solar system. Whether a solar battery is worth the upfront expense depends on how often the customer experiences power outages and if their utility company offers Time-of-Use rates.

Under this rate structure, electricity is more expensive during times of high demand and lower at night and in the winter when demand is lower. Florida homes and businesses with solar batteries can draw from them instead of the power grid during times of peak demand to further reduce their energy bills.

Do I need a permit to install solar panels in Florida?

Yes, you generally need a permit to install Florida solar panels. The permitting process ensures that the installation meets local building and electrical codes, safety standards, and zoning regulations.

Permit requirements can vary by jurisdiction within Florida, so it's important to check with your local city or county building department for specific details on the necessary permits, documentation, and procedures. GreenLancer offers solar plan sets and permitting services, helping streamline the permitting process for Florida solar panel installations. Create a free GreenLancer account to get started shopping for solar design and engineering services.

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Does Florida have a solar rights law?

Florida's solar rights law, also known as the "Florida Solar Rights Act," is designed to protect the rights of property owners to install solar energy devices on their properties. Enacted in 1980, this Florida solar law prohibits restrictions on the installation of solar collectors, clotheslines, or other energy devices based on the use of renewable resources. It ensures that property owners have the right to harvest solar energy without facing unreasonable restrictions from homeowners' associations or local ordinances.

Do I need HOA approval for installing Florida solar panels?

The Florida Solar Rights Act protects homeowners from outright bans on installing solar panels in Florida on residential properties by HOAs and local governments. However, while the law safeguards the right to install solar panels, it doesn’t automatically exempt homeowners from the HOA approval process.

In Florida, HOAs are generally allowed to impose reasonable restrictions on solar panel installations as long as these restrictions do not significantly hinder the performance of the panels or increase installation costs. It's recommended to check with your specific Florida HOA and review their guidelines or covenants related to solar panel projects before proceeding.

Installing Solar Panels In Florida Is A Bright Idea

With a relatively short payback period and lots of sunlight, Florida is an excellent state for installing solar panels. Net metering laws, the solar sales tax exemption, and renewable energy property tax abatement incentives make Florida an excellent opportunity for installers. In addition, Florida is a leading state for electric vehicles, which pair well with a home solar system.

GreenLancer works with solar panel installers in Florida and throughout the country on solar power projects. We’ve helped more than 7,500 solar contractors complete successful clean energy installations.

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