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Policy Memo: Amendment to 2021 Florida statute to accommodate lay-person installation of portable solar panels

Florida sunshine

In Brief

Florida is a state with tremendous resources and opportunity for residential solar adoption. High upfront costs of solar installation and lack of flexibility deter homeowners and renters from adopting clean energy solutions. Revising a Florida law to reduce cost and installation barriers for Plug and Play solar solutions will open opportunities for homeowners and renters to enjoy the cost savings and clean energy generation from on premise solar.

To: Sara Kane, Sustainability & Resilience Manager, Sarasota FL

From: Hedi Katz

 

The U.S. solar photovoltaic market size was estimated at $30 billion in 2022 and is projected to grow 14% annually from 2023 to 20301. Since solar power generates clean electricity without emitting greenhouse gases, residential solar panels are an important tool in facilitating the transition to clean energy. They can also save users thousands of dollars a year and decrease their reliance on the local power grid.

According to the Statute, solar panels must be installed by licensed electricians. The Statute is outdated since portable, or Plug & Play (P&P), solar panels are designed to be safely installed by the average person. Currently, the Statute prevents homeowners, renters, and communities, including those in low and moderate income (LMI) areas, from benefitting from a safe, affordable, clean energy solution to rising electricity costs.

 

High Upfront Cost Limits Potential of Solar

As a result of technological advances and economies of scale, the cost of all types of solar energy has decreased. However, even with a 30% tax credit available to most homeowners via the Inflation Reduction Act (IRA), the average up-front cost of installing traditional rooftop solar panels for a 2,000 square foot home is around $20,0002, still firmly out of reach for most Floridians. This includes the cost associated with hiring a licensed contractor. Furthermore, the average American moves more than 11 times over a lifetime3 and more than a third of Floridians rent housing4. This makes a 25-year investment in a rooftop solar system even less attractive.

 

Plug & Play Is a Safe, Low Cost, Alternative

P&P solar panels are self-contained modular units that don’t require any technical expertise to install. They are designed to be plugged into a home outlet where they can directly offset some of the electricity used in the home. They require no special wiring or structural modifications and may be installed on a porch or in a backyard by the average person with no training. They can also be easily transported from one home to another. The cost can range from as little as $150 a panel to full home systems for $7,000 (Amazon.com). These prices don’t even include the IRA 30% tax credit. Clearly, P&P is a significantly less expensive option.

Despite its tremendous potential as a source of affordable clean energy, P&P solar technologies have lagged in the US versus other countries. Demand for such systems in Europe is growing rapidly, with the number of installed P&P systems in Germany reaching over half a million in 20235. A study conducted in 2016 estimated the potential US market for P&P solar could reach over 57 million households representing over 57 gigawatts of new energy production6. This is equivalent to the power generated by 57 large coal or nuclear power plants. Using the same percentage of households in Florida which had 8.35 million households in 2022, the number of households that could utilize P&P solar would be 3.8 million. This is a conservative estimate since there is more sunshine in Florida than most other states.

P&P solar panels have evolved considerably such that they may be safely installed by a lay person. According to a study conducted by experts at the Department of Materials Science & Engineering at Michigan Technological University7, these systems may be installed by the average person without the need for permitting, inspection and interconnection processes.

 

Florida is the Perfect Place for P&P Solar

A 2016 Harvard Business Review article asserted that solar in the US is being held back by outdated regulations, not by technology8. These include arbitrary fees or paperwork that make it harder and more expensive for people to get permission to install P&P systems9. Here in Florida, although the requirements regarding net metering, permitting, and utilities may vary across counties, the Statute referenced above is the primary roadblock for millions of Floridians to cut down on their electric bills with this affordable clean energy solution. A simple amendment to the Statute could make P&P solar panels a reality in the state.

The sunshine state enjoys an average of 237 days of sunshine every year10 giving Florida a unique opportunity to be a leader in solar power. Floridians want clean energy and need help in reducing both the cost of and reliance on fossil fuels. In fact, 73% of Floridians believe that global warming is happening and 79% support policies to generate renewable energy on public land11.

P&P solar panels provide an outstanding, affordable option for homeowners, renters and LMI communities, broadening the reach and equitability of participation in the transition to clean energy.

 

Simple to Execute

Florida statutes are updated annually after the conclusion of a regular legislative session. Short, simple language may be added to the Statute to amend it to exempt P&P solar panels from the requirement of installation solely by a licensed electrician. This amendment applies only to those P&P solar panels that have been specifically designed and certified to be installed by a lay person. This effort will require little, if any, funding.

Although Florida utilities face a complex array of incentives with respect to renewable energy goals, Florida laws have evolved to prevent utilities, HOAs and others from prohibiting the installation of solar panels. Furthermore, Florida law requires all investor-owned utilities to allow net metering of solar panels.

 

Florida Should be a Leader

P&P solar panels represent a practical, efficient and affordable way to generate electricity. They reduce dependence on fossil fuel sources and lower electricity bills. They allow virtually everyone to enjoy the benefits of solar, even renters and LMI populations. Given the considerable sunshine and relatively simple, low-cost effort associated with making these affordable panels available to Floridians, our great state should seize the opportunity to be a leader in the space.

 

References

[1] Grand View Research, “U.S. Solar PV Market Size, Share & Trends Analysis Report By Application (Residential, Non-residential, Utility), By State, and Sement Forecasts, 2023-2030” p. 1

[2] Sam Wigness, “How Much is a Solar System for a 2,000 Sq Ft House?” Solar.com, Dec 28, 2023

[3] Karen Doyle, “Here’s How Often Americans Move-and How Much They’re Spending” GO Banking Rates, Dec 29, 2023.

[4] “Renters vs Homeowners by State 2024” World Population Review.

[5] Melissa Eddy, “Germans Combat Climate Change From Their Balconies” New York Times, Jul 30, 2024.

[6] Aishwarya S. Mundada, Yuenyong Nilsiam, and Joshua M. Pearce, “U.S. Market for Solar Photovoltaic Plug-and-Play Systems” Renewable Energy, DOI:10.1016/j.renene.2016.11.034.

[7] Aishwarya S. Mundada, Yuenyong Nilsiam, and Joshua M. Pearce, “A Review of Technical Requirements for Plug-and-Play Solar Photovoltaic Microinverter Systems in the United States” Solar Energy” 135, (2016), pp. 455-470.

[8] Joshua M. Pearce, Solar Is being Held Back by Regulations, Not Technology” Harvard Business Review, Dec 15, 2016.

[9] Ibid.

[10] “Florida Climate” Best Places website.

[11] Jennifer Marlon, Emily Goddard, Peter Howe, Matto Mildenberger, Martial Jefferson, Eric Fine, Anthony Leiserowitz, “Estimated % of adults who think global warming is happening” Yale Climate Opinion Maps 2023, Dec 13, 2023.