Florida solar incentives, tax credits, and rebates in 2024

If you are a resident of the Sunshine State, Florida solar incentives can help lower your total installation costs and speed up the payback period for your renewable energy investment.

To make your residential solar energy system as cost-effective as possible, this article provides a comprehensive overview of Florida solar incentives for homeowners in 2024.

Exploring Florida solar incentives

Floridians may be eligible for several national and local solar incentives sponsored by federal and state governments, utilities, and other entities. Florida solar incentives are always subject to change and come in many different forms, including tax credits, exemptions, rebates, and other programs designed to help homeowners reduce net project costs and increase solar ROI.

Florida solar tax credit programs

If you purchase or finance a solar energy system in Florida, you can qualify for the Residential Renewable Energy Tax Credit (RCEC), which is worth up to 30% of total installation costs with no value limit. The RCEC can be redeemed as a credit against federal income taxes owed and can only be claimed by homeowners who own their solar energy system—not a lease or PPA—and live on the property where it’s installed. As the Sunshine State doesn’t collect a personal income tax, there are no state-specific tax credits for solar panels in Florida.

Tax exemptions for solar panels in Florida

Solar panels are exempt from both property and sales taxes in Florida. With a property tax exemption, the increased home value from solar will not increase your property taxes, so as not to penalize you for going green. Likewise, solar equipment and services have been exempt from sales tax in Florida since 1997, helping those all along the supply chain to keep costs low.

Local Florida solar rebates for clean energy systems

Beyond the programs available at federal and state levels, you may be eligible for other solar incentives based on where you live in Florida—usually through an energy utility or local government office.

Where available, rebate programs can provide a direct reimbursement when you go solar. Although the state’s largest electric utility, Florida Power and Light, has no solar rebates available currently in 2024, several initiatives, like the Solar Energy Rebate Grant Program in Dunedin, Florida, reward homeowners for contributing to local sustainability goals.

The difference between Florida solar incentives and net metering

It’s important to separate Florida solar incentives from net metering, as net metering enables you to earn energy bill credits for the solar electricity you export to the grid. By state law, publicly-owned utilities like Florida Power and Light (FPL) and Duke Energy, are required to offer net metering to customers.

While the future of net metering may change if Florida were to follow the path of California and other states adopting net billing tariffs, homeowners who go solar in 2024 can be grandfathered into contracts unaffected by any policy updates.

Florida solar incentive eligibility and application process

To qualify for most solar incentives and programs, your energy system will need to meet several technical specifications, with a professional solar installer almost always required to ensure local electrical, construction, and safety guidelines are met. Besides local regulations, incentive program eligibility and value can also be impacted by the size of your solar energy system, its components, or your household income level.

When determining your eligibility for a solar incentive, it’s recommended to contact a tax or financial professional to ensure you can qualify and maximize your benefits. Beyond Florida solar incentives for photovoltaic (PV) systems, Floridians may also qualify for incentive or rebate programs for thermal solar hot water systems.

Looking ahead and getting started

The future of Florida solar incentives looks promising, as laws that compromised the value of net metering were vetoed in 2021 and 2022, keeping things sunny for homeowners in the Sunshine State. Since then, solar in Florida has continued to boom, leading the country in growth with a 28% installed capacity increase year-over-year in 2023.

As tax credits and incentives are available to make solar power more accessible and affordable for Florida residents, it’s important to talk to your installer and consult a tax professional before making your final investment decisions.

Installed by a certified expert, an Enphase Home Energy System can help guarantee your investment with premium hardware, industry-leading warranty coverage, and smart features to optimize your solar energy production, use, and savings.

Florida solar incentive FAQs

What financing options are available for solar installations in Florida?

In Florida, you may be eligible for several financing options for a residential solar installation through local companies, banks, and credit unions. While many solar installers offer in-house financing options or partnerships, you’re also welcome to explore loans and programs with third-party providers. Depending on where you live, you may be eligible for Florida PACE financing for energy-efficacy improvements sponsored by local cities and counties.

Do solar incentives vary by location within Florida?

The federal solar tax credit, also known as the Residential Clean Energy Credit (RCEC) or Investment Tax Credit (ITC), allows homeowners across the United States to deduct 30% of a solar energy system’s costs from federal taxes owed. Floridians going solar may be eligible for the RCEC statewide, in addition to both property and sales tax exemptions. Beyond these incentives, other programs vary by location, with sparse availability from energy utilities, city and county governments, and private entities.

What is the current percentage of the federal solar tax credit?

The federal solar tax credit is currently worth 30% of total systems’ installation costs, including hardware, labor, and overhead expenses. Unless extended, as it was in the Inflation Reduction Act of 2022, the federal solar investment tax credit (ITC) or RCEC will be worth 30% through 2032 before declining in value and ultimately phasing out in 2035.

Note: This article has been written for educational purposes and is not explicit financial or tax advice.