Cost Savings - Solar Energy

Energy from the sun is free. However, capturing and utilizing this free energy does have associated costs, such as installing and maintaining the equipment needed to harness the energy. Solar Thermal Water Heating systems generally produce the biggest economic return on investment. A typical residential solar water heating system sized for a family of four costs about $5,500. It would take approximately 15 – 22 years* to get a return on your investment through electricity savings alone. However, with the state and federal tax incentives, as well as Gulf Power’s $1,000 rebate, this investment can pay for itself in as little as 6 – 9 years.* A 30% Federal Tax Credit with a $2,000 maximum limit is currently available through 2016. In addition, the state of Florida has limited funds available for a variety of solar technologies.

There are many factors that affect the initial cost and subsequent savings, including location and size of the solar panels, weather conditions, actual monthly hot water usage and maintenance.

* Payback ranges were calculated using the Florida Solar Energy Center’s "Residential Solar Hot Water System Calculator", and based on an assumed system energy efficiency of 4.0, current local electric rates, and hot water usage patterns commonly referred to as high and low intensity.