Florida Solar Incentives, Cost & Payback (2026)
Written by Aditya Patil · Last updated 2026-09-24
The Sunshine State lives up to its name when it comes to solar energy. Thanks to full 1:1 net metering and statewide tax exemptions, going solar in Florida is generally an excellent financial decision for homeowners.
$195
Avg. monthly bill
15.1¢/kWh
Avg. rate
$2.80/W
Est. installed cost
Estimated average
12 yrs
Est. payback (solar only)
typical household
Cost of solar in Florida
For a typical Florida household consuming about 15,512 kWh per year, you would need a solar system sized around 10.94 kW to offset all your usage.
At an estimated price of $2.80 per watt, the gross cost of a 10.94 kW system would be approximately $30,640. Because the federal residential clean energy credit (§25D) currently does not apply for installations completed after the end of 2025, this represents your net cost as well.
Solar only, no battery
With Florida's 1:1 net metering, your excess daytime production is credited at full retail value, making a battery financially optional.
$2,342 / yr
12-year payback · $79,855 over 25 years
Solar + battery
Adding a battery provides crucial backup power during hurricane outages, though it adds upfront cost without increasing savings.
$2,342 / yr
12-year payback · $79,855 over 25 years
Battery hardware cost isn't included in either estimate above — see our best solar battery guide for real installed battery prices.
Florida solar incentives
Florida keeps things straightforward by offering substantial, statewide tax exemptions rather than complex rebate programs. This means less paperwork and guaranteed savings on your upfront purchase and ongoing property value.
| Program | Benefit | Status |
|---|---|---|
| Florida Property Tax Exemption for Renewable Energy Source Devices | 100% of the added just value attributable to a renewable energy source device is excluded from the property tax assessment of residential property (80% for non-residential property). Installing solar (or a paired battery that stores solar/wind/geothermal/biogas energy) does not increase the home's taxable assessed value. | open |
| Florida Solar Energy Systems Sales and Use Tax Exemption | 100% exemption from Florida's 6% state sales and use tax on qualifying solar energy equipment, including solar collectors, photovoltaic modules and power-conditioning equipment, energy storage units, and accessories integral to a certified solar energy system. | open |
Net metering rules
Net metering is where Florida truly shines for solar homeowners. Under Rule 25-6.065, all of the state's major investor-owned utilities (like FPL, Duke Energy, and TECO) must offer 1:1 net metering for residential solar installations up to 2 MW.
When your panels produce more electricity than your home is using, the extra energy flows onto the grid. Your utility credits you for this excess power at the full retail rate. Those credits carry forward each month.
| Policy | Full Retail Net Metering |
| Regulator | Florida Public Service Commission (FPSC) |
| Export valued by | 1:1 against the retail electricity rate |
| True-up | Annual (remaining banked kWh paid at avoided cost generation rate) |
| System Cap | Up to 2 MW (capped at 90% of utility service capacity) |
| Legislative Status | Full retail net metering remains in effect after 2022 veto of phase-down bill |
Excess kWh generated in a billing month are credited 1:1 against the customer's retail electricity rate and roll forward as a kWh 'bank' each month. At the customer's annual true-up (the December meter read, per FPL's published guidelines), any remaining banked kWh are paid out or credited based on the utility's average annual cost of generation rather than the retail rate -- for example, FPL calculates this true-up credit using its Cost of Generation (COG-1) rate. This avoided-cost-style true-up rate is materially lower than the roughly 12-15 cents/kWh residential retail rate; third-party estimates put it in the low single digits of cents per kWh, but the exact COG-1 (or equivalent) figure is set in each utility's own tariff filings and changes periodically, so it should be confirmed against the customer's specific utility before publishing a number.
Top utility companies
| Utility | Residential rate | Customers |
|---|---|---|
| Florida Power & Light Co | 13.71¢/kWh | 5,236,277 |
| Duke Energy Florida, LLC | 16.63¢/kWh | 1,793,067 |
| Tampa Electric Co | 14.67¢/kWh | 757,280 |
Residential rate and customer counts are from EIA-861 (see Data sources below).
Battery & VPP pilot programs
While Florida doesn't have statewide battery rebates, some utility companies are experimenting with Virtual Power Plant (VPP) and demand-response programs to improve grid resiliency.
Duke Energy Florida Residential Battery Storage Pilot (Hunter's Creek, Orlando)
A Duke Energy Florida pilot, launched February 2026, installing Generac battery systems in more than 75 homes in the Hunter's Creek neighborhood of Orlando to test using home batteries for demand response and backup power. Participation appears limited to the initial selected homes in this neighborhood; no public compensation amount or open sign-up process for other Florida customers was found, so this is not a general-public incentive and is listed here for informational purposes only, not as an open program.
Duke Energy Florida 'Bring Your Own Battery' Study
A Duke Energy Florida pilot recruiting existing residential battery owners (via partners Sunrun, Generac, SolarEdge, and Virtual Peaker) to enroll their home batteries in a demand-response study aimed at improving grid resiliency and testing customer bill-savings potential. This was announced as a roughly 12-month study starting January 2022; its current 2026 enrollment status and whether it has been extended or superseded by newer Duke Florida storage pilots could not be confirmed from primary sources during this research and should be treated as unverified for ongoing enrollment.
FAQ
Does Florida have a solar tax credit?
Florida doesn't have a state-level income tax credit for going solar, but it does offer excellent property and sales tax exemptions. You are also eligible for the federal clean energy tax credit (§25D) if you purchase the system, though that credit is scheduled to end after 2025 under current law.
How does net metering work in Florida?
Florida has very favorable 1:1 retail net metering for investor-owned utilities like FPL, Duke, and Tampa Electric. Every excess kilowatt-hour your solar panels send to the grid offsets a kilowatt-hour you pull from the grid later that month. Any leftover credits roll over month-to-month until your annual true-up.
Do I need a battery with my solar panels in Florida?
From a purely financial perspective, a battery isn't strictly necessary in Florida because 1:1 net metering acts as a virtual battery. The grid effectively stores your excess daytime power for full value. However, many Floridians still add batteries to keep the lights and AC on during hurricane-related grid outages.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil