Maximizing Your Investment on Solar Panels in Florida
With the cost of utilities continuing to rise, Florida homeowners are looking for a more sustainable and cost-effective way to power their homes and cut down on energy costs. Luckily, the sunshine state offers an abundance of harvestable energy that can be used to power homes across the state. Installing solar panels on your home is becoming more popular and is a great way to skip out on rising utility costs.
However, with so many options available, choosing the right system and understanding how to maximize your investment can be overwhelming. Luckily, we’re here to answer your commonly asked questions and teach you how you can maximize your investment on your solar energy system. Let’s dive in!
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How long does it take to get your money back on solar panels?
The time that you will receive a positive return on investment varies depending on many different factors. However, the payback period in Florida ranges from 8 to 12 years on average. Determining your payback period is not as straightforward as it seems. If you’re considering installing solar panels to your home and are attempting to determine when you would receive a return on your investment, consider these factors: the size of solar system needed, installation fees, and how much you spend on your utility bill.
Some of this information may be difficult to determine on your own, which is why we recommend that you meet with various solar companies to help you calculate your potential savings. However, while each individual home differs, the state of Florida is a great place to receive a positive return on investment.
What is the typical ROI on solar panels in Florida?
Energy Sage estimates that the average return on investment for solar panels in Florida within a 20-year period is between $20,000 and $35,000. However, it is important to note that most solar panels come with a 25Y warranty to produce 80% of their nameplate power after 25 years. This means that the average return on investment in Florida may be higher than estimated. It has also been reported that an average of 80%-100% of Florida homeowners have been able to completely offset their electric bills after their solar panel installation.
Additionally, with utility companies such as FPL, Duke, and TECO announcing proposals for heightened rates, the average return on investment may ultimately increase. Unfortunately, utility costs will not be lowered anytime soon. While this is an unfortunate situation, it makes the switch to solar a much smarter move to level your energy costs and shield yourself from increasing rates.
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Earning tax credits and incentives
Fortunately, for Florida homeowners, there are more ways to maximize your solar investment on renewable energy through tax credits and incentives.
In Florida, the federal tax credit is a key incentive for investing in solar panels. The Inflation Reduction Act allows Florida homeowners to deduct 30% of the solar installation cost from their federal taxes. Additionally, residential solar panels are 100% exempt from property taxes.
Not only do these credits and incentives help you receive a return on investment quicker, but they also help you maximize your solar investment. Be sure to do your research before your installation and take full advantage of them!
What if I may want to eventually sell my home?
Don’t worry, you can still maximize your investment on solar panels, even if you may want to eventually sell your home. Installing a solar panel system not only helps you save money on energy bills but also adds to the overall value of your property.
Solar panels add desire to homebuyers who are looking to reduce their carbon footprint and electricity consumption rates. Fortunately for you, this means that homebuyers who are searching for these factors may end up offering more money for your home. Maximizing your solar investment is still possible!
How to get the most out of your residential solar panels
After you install solar panels, how can you make sure you’re getting the most out of your solar system? Here are a few tips!
Use a monitoring system
Regularly tracking your solar panel performance is key when preventing system damage. Consistently monitoring your solar system will help you stay on top of its health and lower your chances of paying out of pocket for repair costs. Monitoring your solar system may sound complicated, but SEM Power makes it easier than ever! We offer a way for you to track the production of your system on your mobile device so you can be on top of any disturbances.
Install a solar battery
Installing a solar battery is a great addition to your solar system. A solar battery can generate power even when the power goes out, which is especially useful during storm season. Additionally, if you own an electric car, you can install a solar carport which can keep you from paying charging costs elsewhere. Solar batteries work by storing renewable energy produced by your solar panels for the times you may need it most!
Keep an eye on your surroundings
For solar panels to receive the maximum amount of sunlight possible, it is important to ensure that there are no surrounding obstructions. If you have objects surrounding your home, such as tall trees, it is important that you are aware of any growing branches that may become an obstruction. If you see this occur, simply remove the obstruction as soon as possible so your panels can continue producing the maximum amount of energy possible!
Is Florida a good place for Solar Panels?
Fortunately, Florida is a great place for solar power! Depending on your location within the state, you can experience an average of 240 sunny days per year. With this being the case, we can confidently say that switching to solar power in Florida is a logical idea!
Take the First Step to a Sunnier Future
At SEM Power, we want to help make the switch to solar power easier than ever! Our professionals will work with you to help you determine the best how you can maximize your solar energy system and get the best bang for your buck. Contact us today!
Common Questions About Solar Panels
What can I do to get the most out of my solar panels?
To get the most out of your solar panels, you should ensure that they are positioned correctly to receive the most sunlight, consider installing a solar battery and modify your daily habits.
How do I calculate my ROI?
To calculate your ROI, you need to determine the total cost of installation, as well as the amount of energy savings you’ll achieve over a certain period of time. The ROI can be calculated by dividing the net savings by the initial investment. For example, if you calculated a gross cost of $15,000 and annual savings of $2,000, your payback period would be 7.5 years.
How do I know that I will get a good ROI?
To determine if you’ll get a good ROI from your solar panels, consider factors such as the cost of electricity in your area, the size and efficiency of your solar panels, and the amount of sunlight your panels receive.
How do I know if I’m eligible for tax incentives and rebates?
Research the programs available in your area and the qualifications required. Information can usually be found on your state’s website. Additionally, be sure to have a conversation with your solar contractor.
Partner with SEM Power Today to Leverage Incentives and Rebates for Solar Energy
SEM delivers clean solar energy systems that reduce energy costs for Florida homes, businesses, and communities. Our best-in-class solar panel technology and experienced solar service experts can help you save and enjoy clean, renewable solar energy.