How Much Does Solar Cost In Florida?
The short answer is $2.25 – $3 a watt, (10 kW system = $22,500 – $30,000). Equipment used, roof type, building height, and installation quality all factor into your out of pocket cost and ultimately the returns.
To put things in perspective let’s say you have a shingle roof one story home with average utility power bill of $167 a month.
$167 x 12 = $2004 a year for utility power, over the course of 25 years (if rates stay the same) is $50,100 you’ll be giving away to the utility company.
Guess what, rates aren’t going to stay the same. In fact electric rates have increased, on average, 6.7% each year for the last 15 years. With the constant flow of new residents coming into our beautiful state you can expect the cost of utility power to rise even higher.
Now take a look at going solar:
- $28,000 Out of Pocket (Cash Price)
- $8,400 Fed Tax Credit (Extended to 2019 for the full 30%)
Giving you a net cost of $19,600 / $2,200 a year in savings = 8.9 ROI from today’s numbers. Factor in the rising cost of utility power and we estimate around a 7 year ROI
At year 25 by going solar you will have saved over $36,072 not including rate increases.
How Much Can I Save with Solar Power?
Our residential grid tied systems include:
- High Efficiency Tier 1 Solar Panels
- SMA Sunny Boy Inverters
- IronRidge Racking (Availible In Black)
- Flashings To Protect Against Water Intrusion
- Online Monitoring
- 5 Year Installation Warranty
As the homeowner you would now own a solar electric system that adds value to
your home, and provides protection against future electric utility rate increases
over the coming years and decades. Solar systems offer a long term, low risk way
to invest your money. In addition to the financial sense of solar power, the
environmental benefits are undeniable, thereby making it an investment into our
planet’s healthy future for many generations to come.
Most electric utility companies bill their customers using a tiered rate plan. This plantypically means the first 1000 kilo-watt hours consumed per month are billed at the lowest rate per kilo-watt hour and anything over that is charged at a higher rate. Solar systems can replace your highest cost power first.
Added Property Value
Homeowners can expect a reasonable increase in their homes resale value. An article in the Appraisal’s Journal showed that a home’s value increases $20,000 for every $1,000 saved in annual electricity which means most systems will have paid for themselves the moment the solar system is installed.
Incentives & Tax Credits
Tax credits can provide a substantial portion of the total solar power system cost. You should confirm the availability of the economic incentives and you should consult your tax advisor about the tax credit before you install a solar Photovoltaic system.
With today’s federal tax incentives, there’s no better time to go solar. The federal energy Investment Tax Credit (ITC) allows you to take a tax credit equal to 30% of the total cost of your solar system, and due to the Energy Improvement and Extension Act of 2008, the federal ITC remains available through 2019.
- Federal 30% Tax Credit: The federal government is offering a 30% tax credit of the total system cost to promote renewable energy installations
(Residential & commercial projects).
- Accelerated Depreciation (MACRS): Renewable energy solutions can be depreciated on a 5 year accelerated schedule (Commercial Projects).
- 50% Bonus Depreciation: Renewable energy solutions can take advatage of a one year, 50% bonus depreciation incentive (Commercial projects).
Fortunately, Photovoltaic (PV) technology has matured such that the payback question can now be given a serious answer, backed by 40 years of weather data, solid math, and accounting.
These answers vary slightly by local climate, utility rates and incentives. In the best cases in Florida, the compound annual rate of return is well over 12 percent, the cash flow is positive, and the increase in property resale value more than covers the cost of the PV system.
Net metering provides the greatest benefit to you as a consumer. Under this arrangement, a single, bi-directional meter is used to record both electricity you draw from the grid and the excess electricity your system feeds back into the grid.
The meter spins forward as you draw electricity, and it spins backward as the excess is fed into the grid. If, at the end of the month, you’ve used more electricity than your system has produced, you pay retail price for that extra electricity. If you’ve produced more than you’ve used, the power provider generally pays you for the extra electricity at its avoided cost. The real benefit of net metering is that the power provider essentially pays you retail price for the electricity you feed back into the grid.