Florida gets abundant sunshine year-round, has electricity rates rising faster than the national average, and currently offers some of the most favorable net metering in the country. On paper, it looks like an ideal solar market. In practice, the picture is a bit more nuanced: there is no state tax credit, you cannot lease a system, and a policy shift scheduled after 2026 is creating real urgency for homeowners who have been on the fence.
This guide covers the numbers Florida homeowners need to make an informed decision in 2026.
Net metering: what Florida currently offers
Net metering is a billing arrangement that credits you for the excess solar electricity you send to the grid. In Florida, the four investor-owned utilities (IOUs), Florida Power & Light (FPL), Duke Energy Florida, Tampa Electric Company (TECO), and Florida Public Utilities (FPU), are required by state law to offer full retail-rate net metering to residential solar customers.
Here is how it works in practice. When your panels produce more electricity than your home is using, the excess flows to the grid and your meter runs backward. You earn a credit worth the full retail rate for every kilowatt-hour (kWh) you export, the same rate you would pay to buy that power back. Those credits roll over month to month throughout a 12-month period. At the end of the annual cycle (typically in January), any remaining unused credits are paid out in cash at a reduced rate of approximately 3 to 5 cents per kWh, depending on the utility.
This is meaningful. In California, Arizona, and most states that have recently revised their solar policies, exported power earns a fraction of the retail rate. Florida homeowners under the current rules get full value for every kilowatt-hour they produce, whether they use it immediately or not. That significantly shortens payback periods and improves 25-year returns compared to states with lower export rates.
One important clarification: Florida's net metering credits are denominated in kilowatt-hours, not dollars. This matters because your utility can adjust its rates without affecting your credit balance directly. You bank kWh and draw them down at whatever the prevailing rate is when you use them.
The 2027 policy change: why 2026 matters
Florida's favorable net metering has been contested for years. FPL, one of the most politically active utilities in the country, has pushed repeatedly to reduce compensation rates for distributed solar. Those efforts largely failed through 2026, but the window is closing.
Under the current regulatory trajectory, Florida's full retail-rate net metering is scheduled to change for new installations after 2026. The expected structure drops export compensation to 60% of the retail rate in 2027 and 50% in subsequent years. Homeowners who install solar before the change takes effect are expected to be grandfathered under the current full-rate policy, likely for 20 years from their interconnection date.
The financial difference is significant. At current FPL rates of around $0.15/kWh, the difference between exporting at 100% vs. 60% is $0.06 per kWh. A typical Florida home with solar might export 3,000 to 5,000 kWh per year. Over 20 years, grandfathering saves $3,600 to $6,000 compared to installing under the new rates, before accounting for rate increases that make the gap larger over time.
This is not manufactured urgency. The policy trajectory is real, and it mirrors what happened in California (NEM 3.0), Nevada, and other states that reduced net metering rates after years of industry lobbying. Florida homeowners who have been delaying a solar decision have a concrete, time-limited financial reason to act in 2026.
Florida electricity rates and utilities in 2026
Florida's statewide average electricity rate is approximately $0.15 to $0.16 per kWh as of early 2026, near the national average. Rates vary meaningfully by utility:
- Florida Power & Light (FPL) serves most of Florida outside the Panhandle, including Miami, Fort Lauderdale, West Palm Beach, and Orlando. FPL's rates are around $0.15/kWh on average, but the company is mid-way through a multi-phase rate increase approved through 2026, one of the largest rate hikes in the state's history. Customers paying today are paying more than two years ago, and further increases are baked in through the end of the year.
- Duke Energy Florida serves the Tampa Bay area, west-central Florida, and parts of central Florida. Duke's rates are around $0.18/kWh as of early 2026, above the state average and rising. Duke requires solar customers to maintain a minimum monthly bill of $30, regardless of how much solar they produce. This is a structural cost to factor into payback calculations for lower-usage households.
- Tampa Electric Company (TECO) serves the greater Tampa area. TECO's rates are approximately $0.17/kWh as of early 2026.
- Florida Public Utilities (FPU) serves northwest Florida and parts of northeast Florida. FPU's rates and solar program details are available at fpuc.com.
Municipal utilities and electric cooperatives in Florida may offer different net metering structures, and some pay below the full retail rate for exported power. If your power is provided by a co-op or municipal utility rather than one of the four IOUs listed above, check directly with your provider before assuming full retail-rate net metering applies to your account.
Florida solar incentives in 2026
Florida has no state income tax, which means there is no mechanism for a state solar tax credit. Incentives come through exemptions and policies rather than a direct credit on a tax return.
- Property tax exemption. The added home value from a solar installation is exempt from property tax assessment under Florida law. A solar system typically adds $15,000 to $25,000 in assessed home value in Florida. Without the exemption, that increase could add $150 to $300 or more per year to your property tax bill depending on your county's millage rate. The exemption applies for as long as you own the home and the system is installed.
- Sales tax exemption. Solar energy equipment is exempt from Florida's 6% state sales tax. On a $25,000 system, that saves $1,500 upfront.
- No utility rebates from major IOUs. FPL, Duke Energy Florida, and TECO do not offer upfront solar rebates as of 2026. Some municipal utilities and co-ops may offer limited rebate programs; check with your specific provider. Do not assume a rebate is available without confirming directly.
- No statewide SREC market. Florida does not have a Solar Renewable Energy Credit program. Solar savings in Florida come entirely from net metering credits and the avoided cost of electricity you would otherwise buy from the grid.
The absence of a state tax credit is a common point of confusion for Florida homeowners researching solar. If a solar salesperson tells you Florida offers a state tax credit, ask them to show you the program details. No such credit exists.
The solar lease ban: you must own your system
Florida law prohibits third-party solar ownership arrangements (leases and power purchase agreements, or PPAs) for residential customers who want to participate in utility net metering programs. To receive net metering credits from FPL, Duke, TECO, or FPU, you must own your solar system.
This matters because in many states, solar leases are a popular financing option that lets homeowners go solar with no upfront cost while the installer retains ownership of the system. That option is not available in Florida for net metering participants.
What this means in practice: Florida homeowners who want the financial benefits of solar need to either pay cash or take out a solar loan. Cash purchases produce the strongest long-term returns since there is no interest cost. Solar loans allow ownership with no upfront payment, but the total cost of the system increases based on the loan's interest rate and term. Compare loan offers carefully. A 25-year loan at a high interest rate can erode much of the financial benefit of going solar.
Note: Some solar companies offer creative structures that technically comply with Florida's law while still providing a no-upfront-cost option. If you are presented with such an offer, read the contract carefully and understand who owns the system and what happens to your net metering eligibility.
Florida sun resource and typical system performance
Florida averages 5.0 to 5.5 peak sun hours per day statewide, with South Florida (Miami, Fort Lauderdale) running slightly higher and the Panhandle running slightly lower. This is a strong solar resource, well above the national average of about 4.5 peak sun hours.
A typical 10 kW residential system in central Florida produces approximately 13,000 to 15,000 kWh per year. Florida homes tend to use more electricity than the national average due to year-round air conditioning demand; the average Florida home uses around 1,100 kWh per month. A well-sized solar system can offset most or all of that usage under current net metering rules.
Under Florida's 115% sizing rule, your solar system cannot be designed to produce more than 115% of your annual household electricity consumption. Installers will size your system based on 12 months of utility bills. Systems that exceed this limit may not qualify for net metering interconnection.
System costs and payback in 2026
As of April 2026, the average residential solar installation cost in Florida is approximately $2.20 per watt. A typical 10 kW system runs about $22,000 before incentives. After the sales tax exemption (saving roughly $1,320 on a $22,000 system), your effective out-of-pocket cost before financing is around $20,680.
Under current full retail-rate net metering, payback periods in Florida are competitive:
- FPL customers on rising rates can expect payback in roughly 9 to 12 years for a cash purchase, depending on system size and energy usage. FPL's ongoing rate increases improve the economics with each passing year.
- Duke Energy Florida customers have higher rates (around $0.18/kWh) but must account for the $30 minimum monthly bill regardless of solar production. For most households with normal usage, solar still makes strong financial sense. Very low-usage households should model the $30 floor carefully.
- TECO customers in the Tampa area see payback in a similar range to FPL, with rates of about $0.17/kWh supporting solid returns.
Over 25 years, a Florida homeowner with solar can expect to avoid $35,000 to $55,000 in electricity costs, depending on utility, system size, and how much rates rise over that period. With FPL's ongoing rate increases, that range skews higher for FPL customers.
Should you add battery storage?
Under Florida's current full retail-rate net metering, battery storage is not financially essential the way it is in California or Arizona. The reason is that Florida's net metering policy effectively makes the grid act as a free battery: you bank excess solar production as credits and draw them down at night or on cloudy days without losing value. A physical battery that stores your solar power does not dramatically improve your financial returns when the alternative (sending it to the grid) earns you the same rate.
The compelling case for battery storage in Florida is resilience, not financial return. Florida leads the nation in named hurricane landfalls. Grid outages during and after hurricanes can last days or weeks in the hardest-hit areas. A solar-only system cannot power your home during a grid outage. Without battery storage, your panels shut down automatically when the grid goes down as a safety measure to prevent feedback into downed lines. A solar plus battery system can keep your essential loads running through an outage.
For homeowners in coastal areas, hurricane-prone regions, or areas with a history of extended outages, the resilience argument for battery storage is strong and arguably more valuable than the financial calculation. For homeowners in areas with reliable grid service, solar-only remains a sensible and financially solid choice under current net metering rules.
One forward-looking consideration: if net metering rates drop after 2026 as expected, battery storage will become financially valuable in the same way it is in California today. A system designed with battery-ready components now can be paired with storage later at lower cost than a full retrofit.
Installer and interconnection responsibilities in Florida
Understanding who handles what can prevent surprises during the installation process.
- Your installer is responsible for: system design and engineering, pulling all required permits, submitting the interconnection application to your utility, coordinating the utility inspection, and activating the system once Permission to Operate (PTO) is granted.
- You are responsible for: selecting your installer, financing or paying for the system, ensuring your roof is in good condition before installation, signing the interconnection agreement with your utility, and notifying your homeowner's insurance carrier.
- Your utility is responsible for: reviewing the interconnection application, installing or upgrading the bi-directional meter (at no cost to you under Florida law), conducting the utility inspection, and activating net metering on your account.
The timeline from signed contract to system activation in Florida typically runs 6 to 12 weeks, depending on permit processing times in your county and your utility's interconnection queue. FPL's queue is among the largest in the state and can take longer than smaller utilities. Ask your installer for a realistic timeline estimate based on current conditions in your area.
Bottom line: Is solar worth it in Florida in 2026?
Yes, and 2026 is a particularly strong year to act. Florida's combination of abundant sunshine, rising electricity rates, full retail-rate net metering, and a real policy change on the horizon makes the financial case more compelling now than it will likely be in 2027 or beyond.
The lack of a state tax credit is a real disadvantage compared to states like Arizona or New York, and the solar lease ban limits financing flexibility. But the current net metering policy compensates significantly: it is one of the most consumer-favorable solar billing structures in the country while it lasts.
The most important steps before signing any contract: get at least three quotes from licensed Florida solar installers, ask each one to model your specific utility's rate schedule and show you a 25-year savings projection, confirm they will handle permitting and interconnection end to end, and check that the installer holds a Florida state contractor's license (EC or CVC class).