Naples, Florida, is known for its beautiful beaches, homes, golf courses, fishing, nature, shopping, and most of all — abundant sunshine. Located in Florida, the “Sunshine State” itself, Naples gets an average of 264 sunny days a year, significantly higher than the national average. If you’re a homeowner in Collier County, you may be wondering if solar energy makes sense for your home. Let’s dive into why homeowners can benefit from solar in Naples, Florida.
Higher Energy Usage in Collier County
The primary electric provider in Naples is Florida Power & Light Company (FPL). FPL has standard residential electric rates as well as Time-of-Use rates, which can be a motivator for customers to switch to solar and reduce their electricity usage during high-demand hours. There is also Lee County Electric Cooperative (LCEC) that serves some areas near Naples, Florida.
As of March 13, 2025, the average residential electric rate in Naples was approximately 15.85 cents per kilowatt-hour (¢/kWh). The average home in Naples uses 14,400 kWh per year, 20% higher than the national average. This high energy usage can be in part attributed to the air conditioning use in Naples’ hot and humid climate, which is known to run for 8-9 months a year. Homes in Naples are also larger than the average home, requiring more energy for heating, cooling, and appliances.
At 15.85 ¢/kWh, and with an average annual usage of 14,400 kWh annually, homeowners in Naples can expect to spend $2,280 per year or $190 per month on electricity. Factoring a 3% annual rate increase, over the course of 25 years, homeowners in Naples can expect to pay $75,000 or more in electricity. This is a significant cost that could be eliminated or at least reduced with rooftop solar.
Solar Market Maturity
Florida is ranked 3rd nationally for total installed solar capacity with 12.9 GW (gigawatts) of solar installed. That is 180,000 solar installations, made up of residential, commercial, municipal, and even community solar projects. In fact, solar makes up approximately 7-8% of the state’s total electricity generation.
With favorable solar policies and strong net metering programs, Florida’s solar market is expected to grow even further in the coming years. Solar is nothing new to Southwest Florida. It is one of the strongest markets in the country. It is tried and tested already, paving the way for thousands of future residences to take advantage of solar’s many cost-saving benefits.
Optimum Solar Panel Production
A major benefit of solar in Florida is just how much energy a solar panel can produce in Florida when compared to the rest of the country. For homeowners in Naples, this means faster paybacks, more energy savings, and more affordable solar solutions. Higher energy production for solar allows a homeowner to accomplish their energy goals with the use of fewer solar panels.
For example, a 7 kW system in Southwest Florida will, on average, generate between 10,500-11,200 kWh annually — a 1.6 production factor! Compared with the national average, which for that same 7 kW system would produce 8,400-8,600 kWh annually.
In Florida, you can get more with fewer solar panels, making a transition to solar energy more affordable for those considering a solar installation.
Florida Solar Incentives
With higher energy usage and optimum solar panel production alone, solar makes economic sense in Florida. If that wasn’t enough, the solar incentives available to Florida homeowners make solar even more attractive.
Investment Tax Credit (ITC)
The Federal Solar Tax Credit, also known as the ITC, allows Florida homeowners to deduct 30% of their solar investment dollar-for-dollar off of their federal income tax liability. The ITC is not limited to just solar; it also covers battery backup.
For example, a 7 kW solar installation in Florida, priced at $3.52/watt, would have a total cost of $24,640.
Example System Cost: $24,640
Solar Tax Credit (ITC): $7,392
Net Cost: $17,248
The tax credit allows for a significant reduction in the total system cost after taxes. If the tax credit exceeds the homeowner’s tax liability within the taxable year the system was installed, any unused credit can be carried forward to future tax years.
As it stands, the ITC will be available through 2032 and should remain an important incentive for homeowners switching to solar in Florida.
Net Metering
Net Metering is a billing mechanism for homeowners with solar, which allows excess solar energy production to be sent to the grid in exchange for a credit on their electricity bill. When a homeowner goes solar in Florida, they will have two sources of electricity: the grid and solar.
Net Metering ensures there is no waste when it comes to the solar energy being produced and allows the solar to remain cost-effective even on cloudy days or at night. For example, on a nice sunny day in Florida, the first stop of the solar electricity from the panels will be to cover the energy usage in the home. Anything left over will go back into the grid for a billing credit. Then at night, or whenever the solar isn’t producing enough electricity to satisfy the needs of the home, electricity will be pulled from the grid. The homeowner won’t be charged, however, unless there aren’t any net metering credits available.
Net Metering rolls over month to month with a “true-up” happening once a year. FPL, the primary electric provider in Southwest Florida, provides a full retail (1:1 credit) net metering rate for excess energy produced from solar.
Return on Investment
Unlike many home upgrades undertaken by Florida homeowners, like updated siding, lanais, hardscaping, and landscaping, solar provides an actual return on investment and monthly financial payback to the homeowner. Most Florida homeowners will experience a return on investment of under 10 years on their solar investment and then enjoy free electricity production for the remainder of the life of the system. The return on investment is reached by electricity savings through net metering and shortened when the homeowner can take advantage of the 30% solar tax credit.
Solar Plus Battery Backup
Grid blackouts and power outages are common in Southwest Florida, especially during hurricane season. Some outages can be brief, while some can last for several days or even weeks. Hurricane Ian, for example, in 2022 left homeowners stranded without power for an extended period of time. Homeowners in the Naples, Fort Myers, and Cape Coral area were left without power for 7-10 days, while some utility customers in more rural areas were left without power for 3 weeks or longer. On average, utility customers in Southwest Florida experience power outages 5-10 times per year.
By adding battery backup to a solar installation, homeowners can keep the lights on and essential appliances running. With solar plus battery backup, the solar panels can continue to charge the batteries while the sun is shining. Battery storage even qualifies for the 30% ITC.
Affordable Solar Financing
Many homeowners who decide to go solar in Florida do so without spending any money upfront by taking advantage of solar financing. Public Service Solar exclusively offers outright purchases and solar loans to customers in Florida with the belief that solar ownership is always best for homeowners.
With a solar loan, the homeowner owns their solar, receiving all the benefits and incentives available, including the ITC. The terms of the loan can vary, oftentimes allowing the homeowner to decide between putting money down or not, and even having authority in the selection of a term between 5-25 years.
With Florida’s abundant sunshine, high electricity expenditures, and available incentives, many homeowners who choose to go solar for no money down can even be cash flow positive month to month. Solar loans are often unsecured, meaning there is absolutely no lien on the home. There are no prepayment penalties for paying off a solar loan earlier, and the loans can easily be transferred over to a new homeowner. In order to qualify for a solar loan, a credit application must be submitted with a minimum FICO, usually in the 650 range. If you are considering financing your solar project in Florida, contact Public Service Solar to find out if you qualify.
Conclusion
For homeowners in Naples, Florida, going solar is a smart financial decision that delivers immediate and long-term benefits. With 264 sunny days per year, higher-than-average energy consumption due to air conditioning, and rising utility rates, solar offers a practical solution to reducing or even eliminating high electricity bills.
Florida’s strong solar market, favorable net metering policies, and the 30% Federal Solar Tax Credit further enhance the affordability and attractiveness of solar. Homeowners can expect a payback period of under 10 years, followed by decades of free electricity.
Additionally, battery backup systems provide peace of mind during Florida’s frequent grid outages and hurricane seasons. With flexible solar financing options, many Naples homeowners can go solar with no money down and enjoy savings right away.
If you’re ready to explore how solar can transform your home’s energy future, contact Public Service Solar.
