Miami residents are dealing with an intense combination this year: record-breaking temperatures and skyrocketing electricity prices. Energy costs in Florida have seen double-digit increases in recent years, at a time when residents are using more electricity to keep their homes cool.
Investing in rooftop solar could help. While there’s a hefty initial investment involved, solar panels can greatly reduce your monthly electricity bill and help you take advantage of that intense Florida sunlight. In fact, Florida has some of the cheapest solar costs in the country and the federal solar tax credit can help ease some of the financial burden.
This large tax credit, created by the Inflation Reduction Act, allows you to recoup up to 30% of the total cost of your solar panel system. Miami residents can benefit from local incentives too, as Florida has a very favorable net metering policy, helping you to pay back your panels quicker.
Best national solar panel companies in Miami
The first (and most important) step in your solar journey is to find a reputable installer. The following installers operate in Miami and earned some of the highest scores in CNET’s ranking of the best national solar companies.
Palmetto Solar
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
SunPower Solar
If you’re looking for top-of-the-line solar panels, SunPower is your best choice. But don’t write it off if you’re looking for a less flashy installation that will get the job done. This year it started installing Qcells panels, which should make an installation from the longest-tenured company on our list available to more people.
Elevation
Elevation’s focus on your home’s energy efficiency isn’t the norm in the industry. If you’re planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation’s solar equipment comes from well-established and well-regarded companies. Elevation’s warranties on workmanship and weatherization could be a bit longer.
Freedom Forever
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that’s changing.
Tesla Solar
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.
Momentum Solar
Momentum installs in 11 states without using subcontractors. While using in-house installers doesn’t guarantee a better experience, it does suggest you’re likely to get a more uniform experience from Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews’ ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum’s is five years, which isn’t the best.
Best local solar panel installers in Miami
National solar companies aren’t your only option. There are plenty of local solar installers in Miami that can get the job done too. Gathering multiple quotes and comparing them between several installers can help you get the best price. Here are a couple of solid local solar companies in Miami.
In addition to solar installations, Florida Solar & Air also works on roofing, windows, doors and HVACs. The company installs panels from Jinko Solar and REC Group. It also offers financing options. Florida Solar & Air has an A+ rating from the Better Business Bureau and a 4.7 rating on Google.
How to determine which solar company is best
Essentially, finding the right solar installer comes down to talking to multiple companies and vetting each one carefully. Ask how long they’ve been in business, which certifications they have (which you can also check here), and whether they do installation in-house or work with subcontractors. “It’s just about asking questions,” Daniel Massaad, CEO of Florida contractor Guardian Home, told CNET. Massaad has worked in the solar industry for close to a decade.
Referrals could point you in the direction of a reputable installer. If you’ve got neighbors who have solar (and in Miami, you likely do), ask them who their installer was and if they would recommend them. You can also check Yelp, Angie, or Google reviews to find highly-rated installers near you. If you want to vet an installer more extensively, check their Better Business Bureau rating.
Solar is an extremely pricey investment, so don’t be afraid to ask questions. If an installer can’t answer any of your questions, that’s a red flag. It’s also a good idea to get at least three quotes from different solar installers. The more installers you hear from, the more of an informed purchasing decision you’ll be able to make. Comparing quotes could end up saving you thousands in the long run.
The costs of solar panel installation in Miami
Solar costs are hard to get a solid grasp on. Because every home is different, every solar installation is going to be uniquely different. A good installer will help you size the system to your roof (and your electricity needs). Obviously, the larger the system, the more it will cost. If you add a home battery to your solar system, it will increase the price significantly. But it might be worth it in the long run.
Solar panels also vary in cost based on which installer you use. This is why it’s important to get multiple quotes to make sure you’re getting the best price. The one thing that can decrease the cost, however, is taking advantage of solar incentives from federal and state governments, which can shave more than 30% off the sticker price.
Average cost of solar panels in Miami
| Typical system size (kW) | Price per watt | Total installed cost (before incentives) | Total cost after 30% federal tax credit | |
|---|---|---|---|---|
| Miami, Florida | 9.0 | $3.21 | $28,890 | $20,223 |
| National average | 6.7 | $3.67 | $31,558 | $22,091 |
Solar panel incentives and rebates in Miami
Miami residents have a lot of financial rebates at their fingertips. The federal solar tax credit is a strong, 30% rebate on the total cost of your solar panel system installation. But the state of Florida offers some strong local incentives that make going solar a bit easier.
The state’s net metering policy is incredibly favorable. Florida has state-governed retail rate net metering, which means you’re getting credited at the full retail rate (the rate you pay for electricity) for any of the excess electricity you send to the grid. This can help cut down your solar payback period.
While the state doesn’t fully exempt solar panel systems from increasing your property taxes, you can shave 80% off their value. You’re also free from paying sales taxes on the solar panels. If you decide you can’t finance a solar system, or you’re a renter, local community solar programs might be a decent alternative for you to reap some of the benefits associated with switching to solar.
Residential solar incentives in Miami
| Program | Description |
|---|---|
| Federal solar tax credit | The federal government offers a tax credit to cover up to 30% of the cost of a solar installation. There are no income restrictions here, but the rebate is not a blank check. It reduces your tax liability at the end of the year. |
| Net metering | Florida’s net metering policy is governed by the state, with utilities compensating solar customers the full retail rate for any excess power they send to the grid. |
| Property Assessed Clean Energy program | Residents of Miami-Dade County can access financing for solar through the PACE program, which allows the debt to be repaid through “voluntary assessments on their property tax bills.” |
| Community solar | Florida is the top state for community solar availability, with 1,600 MW of community solar currently installed. If your home isn’t a good candidate for rooftop solar, this can be an alternative to powering your home with solar. |
| Sales tax exemption | In Florida, the purchase of solar panels themselves are exempt from sales tax. |
| Property tax exemption | Homeowners in Florida are protected from property tax increases due to a solar installation. The state exempts 80% of the value of the solar array from property tax calculations. |
Solar installation factors to keep in mind
Before you jump right into a solar installation, there are some factors you should consider to make sure you’re making the right move for your home. Here are a few things to consider.
- Roof condition: How old is your roof? If it’s near the end of its life, you’ll want to replace it before installing solar. The location and pitch of your roof matters too, and will determine how much energy your panels can produce. Ask potential solar installers if your roof is a good fit for solar panels.
- Peak sun hours: Miami has around 250 sunny days per year, which bodes well for solar panels. Florida as a whole gets about 4.8 to 5.4 peak sun hours per day, which is better than average (experts recommend at least 4 peak sun hours for best performance).
- HOA regulations: If you live in an HOA, you’ll want to check if they have any rules about solar panels. In Florida, HOAs aren’t allowed to ban solar systems entirely. But Massaad said they can sometimes dictate which part of the roof they can be installed on.
- Homeowners insurance: Take a look at your homeowners insurance policy to make sure it covers a solar array — don’t just assume that it does. And even if the policy covers solar, make sure your coverage limit can accommodate a $20,000 or more increase to your home value after installation.
- Renting versus owning: If you rent your home, you probably don’t have the option to make an improvement like rooftop solar. But that doesn’t count you out entirely: You can also sign up for community solar to enjoy many of the benefits that come with switching to solar energy.
How to pay for solar panels in Miami
There are a lot of different ways to finance solar panels, depending on your situation and risk tolerance. Here’s a breakdown of your options.
Cash
This is the simplest, most cost-effective way to pay for solar. Covering the entire cost upfront allows you to avoid paying interest. And it gives you a shorter payback period. But it does require you to have thousands of dollars on-hand for your initial purchase.
Solar loan
A solar loan from the installer (or from a bank) is a common financing option. This allows you to give a small down payment and spread out the rest of the cost over monthly installments, just like any other loan. The downside is that you will be paying interest, and won’t fully own the panels until the loan is paid off.
Solar lease
Many solar installers will allow you to lease the solar panels from them, almost like renting a solar system. This often means you put little or no money down, but instead pay a monthly fee to lease the panels from the solar company. You don’t own the solar panel system — you’re paying the solar company to use them. Keep in mind that this can get complicated if you decide to sell your home during the lease period.
Personal loan
A personal loan from your bank can be used for just about anything, including solar systems. It can be a quick, easy source of money, but the interest rates are often extremely high compared to other loan products.
SELF or PACE loans
Florida residents can access two special loan programs designed for solar. The SELF program offers low interest rates and favorable terms to state residents, while the PACE program allows homeowners to pay back the solar loan through their property tax bills.
HELOC or home equity loan
If you’ve got a lot of equity in your home, you could also tap into that to pay for your panels by taking out a home equity line of credit or home equity loan. This can be a bit risky, as you’re using your home as collateral for the loan in the event you can’t keep up with payments. This means you could lose your home. And some home equity loans have adjustable interest rates, which can spike unexpectedly.
How we found the best solar panel companies
The companies we listed above as “the best” are curated from CNET’s best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state. Whether we’ve completed a full review on a company or not, it’s always a good idea to get multiple quotes from different installers before choosing a company.
Frequently asked questions
What are the advantages of solar panels?
Solar panels help you generate your own electricity, which can reduce your monthly bills and even generate profit over a long period of time if you sell excess energy to the grid.
How long does it take to pay off solar panels?
It depends on how much you pay for them and how you finance them. Here’s a guide to calculating your solar payback period.
Are solar panels worth it in Miami?
They could be. Miami has plenty of sunny days and peak sun hours to give you lots of solar energy, and solar costs in Florida are low enough to make the investment pay off.
Does Miami offer a solar tax credit?
The city doesn’t have a specific solar tax credit, but Miami residents can take advantage of federal and state solar incentives.
