Not much talk about solar power in SW Florida (real estate, 2015)

[davephan]

There doesn't seem to be much talk about installing PV solar panels in SW Florida. There's a lot of sunshine in Florida compared to other states, it seems like it would make economic sense to install solar power.

In Minnesota, the break even time is now 8 years for a PV solar system. The sunshine in Minnesota is significantly less than Florida, but the incentives to install a system might be better. The cost of electricity is where I live is 13 cents per KWH. There are generous incentives that reduce the payback time to 8 years. There's the Federal tax credit, a utility rebate, and you are even paid 8 cent per KWH for all the solar power you generate, even if you use the solar power yourself! So, if you size the system correctly, after 8 years, all your electric power is free, minus a hopefully small grid connection fee. The resale value of your home would be increased too. The panels are guaranteed for 25 years and are replaced for free if they do not function. We are thinking about installing a PV solar system here, but we might not have that many years left in Minnesota.

In Hawaii, where the electric costs are about 35 cents a KWH, the break even time can be as short as 4 to 5 years, due to the very high electric rates in that state.

I've seen some homes in Florida with PV solar systems using Google Earth, but no where as many PV solar installations as I would expect to see with all the sunshine there. Maybe the electric power rates are dirt cheap in Florida. Maybe there are restrictions against solar power from HOV's and the electric utility companies lobbying the politicians restricting or discouraging solar power to protect the utilities.Or, may be people don't have the financial ability to spend the money up front to install a PV solar system.

[Macgregorsailor51]

Electric is pretty reasonable here.. Solar is expensive to install and it will be installed by who? Someone with years of traing in that industry? Not likely.. Wind Damage is almost common down here .. roofing materials seldom last 25 years down here. IMHO NEVER put a P.V. system on anything but a brand new roof. there are a few exceptions and they are few...( that said recently the last 10 years, they have gotten a lot better but PV systems may take awhile to catch on..) I dont know for a fact but I would guess you have bigger and better incentives for home owners.. Politics are such down here that , that wont happen down here.. P.V. Panels is a communist socialistic liberal conspiracy aimed at taking away our freedoms..and guaranteed constitutional rights... JSYK : )

[Harbor Hopper]

This topic has been brought up many, many times (use the search function and see). Solar for electricity has historically been too expensive to justify. Breakeven was just too long and not a significant resale factor to justify it.
Prices have been decreasing though and more and more people are doing it. FPL has announced a HUGE solar farm project to reduce dependency on coal & natural gas.

[Macgregorsailor51]

It just doesnt pay here because its so ready availability and at such a reasonable cost per KW..
My niece just put $45K in PV on her roof on St Croix and she holds 20,000 gallons of rain water in her underground cistern.
The cost of electric is very high on St Croix and potable water is a limited commodity and expensive.. It makes ALL the sense in the world down there.

[snowtired14]

Originally Posted by Harbor Hopper

This topic has been brought up many, many times (use the search function and see). Solar for electricity has historically been too expensive to justify. Breakeven was just too long and not a significant resale factor to justify it.
Prices have been decreasing though and more and more people are doing it. FPL has announced a HUGE solar farm project to reduce dependency on coal & natural gas.

Yeah, the payback/breakeven point is longer than most retiree's lifetimes.- LOL

[MartyGras]

When people calculate the break even they fail to factor in a few very important factors.
30% federal tax credit
Increased value of your home
The increase in the value of you home is not reflected in an increased property tax bill (Florida Law)
The return on investment is better than anything you will get on bonds
Electric rates will increase in the future
Think of it as a retirement investment that will pay tax free dividends down the road.

I don't have solar but it is on my makes sense would like to do list.

The increase in the value of the home alone makes it instantly break even.

Gary

[Chrisandra]

FPL used to give solar rebates...about 15 million dollars worth each year. Just stopped the solar rebate program 2015. Their reasoning behind it is why should FPL customers who can't afford solar energy installation be responsible for paying into the rebate program. The end.

[SeaRay35]

Amazing how Florida is 3rd in the nation in solar potential but 18th in installed solar capacity.

[SeaRay35]

In Sunshine State, Big Energy Blocks Solar Power*|*Florida Center for Investigative Reporting

[HarborRat]

Originally Posted by MartyGras

When people calculate the break even they fail to factor in a few very important factors.
30% federal tax credit
Increased value of your home
The increase in the value of you home is not reflected in an increased property tax bill (Florida Law)
The return on investment is better than anything you will get on bonds
Electric rates will increase in the future
Think of it as a retirement investment that will pay tax free dividends down the road.

I don't have solar but it is on my makes sense would like to do list.

The increase in the value of the home alone makes it instantly break even.

Gary

Electricity is cheap here. While you may break even in 10 years you have to worry about storms destroying the panels in that time and higher insurance costs. Also, from what I understand, the Florida heat actually reduces the efficiency and life expectancy of the panels. In 10 years you may get half the output of when new. When it comes time to replace the roof every 15 years or so (down here) it would not be worth paying to reinstall the old and worn out panels on the new roof, so don't expect "free power forever" after you get your ROI. Home buyers won't pay much extra for a house with 10 year old panels, if anything.

In a perfect world solar would be great down here. But most people weigh the reward against the risk and money outlay and it's not worth it to them.

When you consider two options: 1. Invest $30k in solar and hope to get your money back in 10 years, or 2. Wisely invest $30k in stocks, bonds, real estate etc.... In 10 years "1" might get you back to even whereas "2" has a pretty good chance of doubling your money or more. So either you broke even or you have $60k in your pocket, most smart investors choose the latter.