Florida is the third most solar-active state in the US, and for good reason. Over 320 days of sunshine per year, the highest residential electricity rates in the Southeast, and a straightforward incentive stack that, while not as elaborate as California’s, still makes solar one of the strongest financial investments a homeowner can make.
Florida has no statewide solar income tax credit. Eligible state tax exemptions, utility net-metering credits and verified local incentives may still help. The federal homeowner Residential Clean Energy Credit (§25D) does not apply to new installations completed after December 31, 2025.
This guide explains Florida incentives and financing. Federal-credit corrections and illustrative cost calculations were reviewed October 2, 2026. Confirm current local funding and eligibility directly with programme administrators.
Florida Solar Incentives — Quick Snapshot 2026
| Incentive | Value | Who Qualifies | Expires? |
|---|---|---|---|
| Federal homeowner credit (§25D) | $0 for new 2026 installations | Earlier qualifying installations considered separately | Ended Dec. 31, 2025 |
| Property Tax Exemption (100%) | Avg. $250–$600/yr saved — permanently | All Florida homeowners | No expiry |
| Sales Tax Exemption (6%) | Avg. $1,452 saved at point of purchase | All Florida homeowners | No expiry |
| Full Retail Net Metering | Credits at retail rate (~$0.13–$0.15/kWh FPL) | FPL, Duke Energy FL, TECO, FPU customers | No expiry — monitor |
| Jacksonville Battery Rebate | Up to $2,000 | Jacksonville residents only | Check status |
| Boynton Beach Energy Edge | Up to $1,500 solar + $500 EV charger | Boynton Beach residents only | Check status |
| Dunedin Solar Grant | $0.25/W up to $2,500 total | Dunedin homeowners only | Check status |
| Lakeland Electric Battery Rebate | 50% of battery cost up to $1,000 | Lakeland Electric customers only | Check status |
| Tallahassee Solar Loan | Up to $20,000 low-interest, no down payment | Tallahassee Utilities customers | Ongoing |
| PACE Financing | $0-down repaid via property tax — all of Florida | Property owners in PACE zones | Ongoing |
| SELF Low-Interest Loan | Loans for solar + efficiency, nonprofit rates | Income-qualified homeowners statewide | Ongoing |
What Has Changed or Expired — Important Updates for 2026
Federal Homeowner Solar Credit — Closed to New 2026 Installations
The homeowner Residential Clean Energy Credit (§25D) previously provided 30% of qualifying expenditure. It ended for new expenditure after December 31, 2025. Paying in 2025 does not qualify an installation completed in 2026. Eligible earlier installations and carryforwards are separate from new 2026 systems. Business-owned and lease/PPA systems follow different rules. Source: IRS.
| Programme | Location | Incentive Value | What’s Covered | Notes |
|---|---|---|---|---|
| Jacksonville Solar Battery Storage Rebate | Jacksonville (JEA) | Up to $2,000 | Battery storage with solar | Verify current status with JEA before contracting |
| Boynton Beach Energy Edge Rebate | Boynton Beach | Up to $1,500 solar + $500 EV | Solar PV + EV charger | Additional rebates for other efficiency improvements |
| Dunedin Solar Energy Rebate Grant | Dunedin | $0.25/W up to $2,500 | Solar PV installations | Lower of $0.25/W or $2,500 cap applies |
| Lakeland Electric Battery Rebate | Lakeland Electric territory | 50% of cost, up to $1,000 | Solar battery storage only | Must be a Lakeland Electric customer |
| Tallahassee Utilities Solar Loan | Tallahassee city limits | Loans up to $20,000 | Solar PV + energy efficiency | No down payment, low interest rate |
| Gainesville Regional Utilities | Gainesville | Check status | Varies | GRU has historically offered solar rebates |
| Orlando Utilities Commission | Orlando (OUC area) | Check status | Varies | Verify solar-specific terms directly with OUC |
| FPL SolarTogether | FPL territory (most of FL) | Waitlist only | Community solar subscription | Currently fully subscribed — join waitlist |
| Duke Energy Clean Energy Connection | Duke Energy FL territory | Community solar credit | Customers without rooftop solar | Currently costs more than standard electricity |
| TECO Sun Select | Tampa Electric territory | Community solar offset | Locks in fuel charge at current rates | Minor savings vs. standard electricity |
PACE Financing — Solar with No Upfront Cost
What PACE Is
Property Assessed Clean Energy (PACE) financing allows Florida homeowners to fund solar installations (and other energy improvements) with no down payment. Instead of a traditional loan, the repayment is attached to your property and collected through your annual property tax assessment. PACE is available in most Florida counties through programmes like Ygrene, HERO, and Green Finance Florida.
How It Works
- Apply through a PACE administrator (Ygrene, Renew Financial, etc.)
- Funding is approved based on home equity and property value — not credit score
- Repayment is added to your annual property tax bill over 5, 10, 15, or 20 years
- PACE liens attach to the property — if you sell, the new owner assumes the PACE obligation (this must be disclosed and can affect mortgage eligibility)
- Interest rates typically range from 5–9% depending on term and programme
When PACE Makes Sense
PACE spreads payments through property assessments, but does not restore the expired homeowner federal credit. Compare total repayment, fees, lien implications and sale/refinancing conditions against other financing options.
PACE Cautions
SELF — Solar and Energy Loan Fund (Non-Profit Financing)
The Solar and Energy Loan Fund (SELF) is a Florida-based non-profit CDFI (Community Development Financial Institution) that provides low-interest loans for solar and energy efficiency improvements. SELF specifically targets income-qualified homeowners who may not qualify for traditional solar financing.
SELF loans are available for solar installations, HVAC replacement, insulation, and other energy improvements. Loan amounts and interest rates vary — visit self-fi.org for current terms. SELF operates primarily in Treasure Coast, Okeechobee, and Heartland regions.
How Much Do Solar Panels Cost in Florida After Incentives — 2026
The following cost examples use an illustrative $2.20/W installed price, rather than a current quote. The 2026 homeowner federal credit is $0. Do not subtract a sales-tax exemption again from an installed price that already excludes the tax.
| System Size | Gross Cost | 2026 Federal Credit | Sales Tax Treatment | Cost Before Local Incentives | Est. Annual Savings |
|---|---|---|---|---|---|
| 8 kW | $17,600 | $0 | Verify tax treatment in quote | $17,600 | $1,800–$2,200 |
| 10 kW | $22,000 | $0 | Verify tax treatment in quote | $22,000 | $2,200–$2,700 |
| 11 kW | $24,200 | $0 | Verify tax treatment in quote | $24,200 | $2,400–$3,000 |
| 14 kW | $30,800 | $0 | Verify tax treatment in quote | $30,800 | $3,100–$3,800 |
| 18 kW | $39,600 | $0 | Verify tax treatment in quote | $39,600 | $4,000–$5,000 |
Typical payback period: 8–12 years for Florida homeowners in 2026. At 5.5–6.5 peak sun hours per day (South Florida) to 4.8–5.5 (North Florida), Florida’s solar resource is excellent. After payback, most systems continue generating electricity for 25+ years.
These 2026 cost examples include no homeowner federal credit. State tax exemptions are not cash rebates; confirm whether an exemption is already reflected in the quote.
Is Solar Worth It in Florida in 2026 — The Honest Answer
The Case For Going Solar Now
Florida’s electricity rates have increased 45% from 2020 to 2026 — and FPL’s locked-in four-year rate plan (2026–2029) guarantees further increases averaging $7–$15 per month per year for the typical household. The average FPL bill for 1,000 kWh usage is now approximately $136/month and projected to hit $148 by 2029.
A solar system converts a variable, rising expense into a fixed capital cost. Every kilowatt-hour you generate is one you do not buy at an ever-increasing retail rate. With full retail net metering, the math is straightforward: every kWh your panels generate is worth exactly what FPL or Duke would charge you to buy it.
Florida Solar by the Numbers — 2026
| Metric | Value |
|---|---|
| Average installed cost | $2.20/W — one of the lowest in the US |
| Average system size (Florida) | 11 kW |
| Average gross cost | $24,200 |
| 2026 cost before local incentives | $24,200 |
| Average daily peak sun hours | 4.8–6.5 hrs (varies by location) |
| Annual electricity generated (11 kW) | ~14,300 kWh/year |
| Average FPL retail rate (2026) | ~$0.13–$0.14/kWh |
| Average annual bill savings | $1,850–$2,000/year |
| Typical payback period | 8–12 years |
| 25-year net savings (EnergySage) | ~$51,778 for 14.76 kW system |
| Property tax impact | $0 — 100% exempt |
| Sales tax paid on system | $0 — 100% exempt |
The Honest Caveats
Solar is not right for every Florida homeowner. Specific situations where solar may be less financially attractive:
- Shaded roofs — palm trees, large oaks, and multi-story neighbours are common in Florida and significantly reduce output
- Roofs nearing end of life — replacing a roof during or after solar installation is expensive and complex; replace your roof before installing solar
- HOA-managed communities where restrictions apply — Florida HOA solar rights are protected but not absolute
- Plans to sell in under 5 years — solar does increase resale value, but recouping full value on a short timeline is uncertain
- Expired federal homeowner credit — new 2026 projects cannot rely on a 30% credit
Illustrative 2026 Costs Without the Homeowner Federal Credit
| System Size | Installed Cost (@$2.20/W) | 2026 Federal Credit | Your Net Cost |
|---|---|---|---|
| 8 kW | $17,600 | $0 | $17,600 |
| 10 kW | $22,000 | $0 | $22,000 |
| 11 kW | $24,200 | $0 | $24,200 |
| 14 kW | $30,800 | $0 | $30,800 |
| 18 kW | $39,600 | $0 | $39,600 |
Source: EnergySage Florida market data, February 2026. Average Florida system cost $2.20/W — lowest in the Southeast due to the state’s competitive installer market and high solar demand.
What’s Covered
For qualifying installations completed by December 31, 2025, eligible expenditure could include the items below, subject to IRS rules. This historical list does not establish eligibility for new 2026 installations:
- Solar panels (all brands and technologies)
- Inverters (string, microinverters, power optimisers)
- Battery storage systems (when installed alongside solar, or standalone systems over 3 kWh)
- Racking and mounting hardware
- Wiring, electrical work, and labour costs
- Sales tax on equipment (though Florida already exempts this)
- Permitting and inspection fees
How to Claim It
Earlier qualifying installations use the applicable Form 5695 and instructions. Eligible unused credit may carry forward under the applicable rules; do not assume a five-year limit. A new 2026 installation does not qualify. Check IRS guidance.
Key Rules
- You must own the system — not lease it or use a PPA — to claim the ITC
- The system must be installed and operational in the tax year you claim
- Earlier installation eligibility depends on qualifying residential use; rental/investment properties do not automatically qualify under §25D
- The earlier 2032–2034 timetable was superseded; §25D ended for new expenditure after December 31, 2025
🔗 What are all the solar incentives available nationally? → /solar-panel-incentives/
Florida Property Tax Exemption — 100% of Solar Value
What It Is
Florida Statutes Section 196.175 provides a complete exemption from property tax reassessment for residential renewable energy systems, including solar panels. When you add solar to your home, the added value that solar creates is excluded from your home’s assessed value for property tax purposes.
What It’s Worth
Solar installations typically add $15,000–$30,000+ to a Florida home’s market value. Property tax rates in Florida average approximately 1% of assessed value per year. This exemption saves the typical Florida solar homeowner $150–$300 per year in property taxes — permanently, for the life of the system.
(system lifetime) ~$5,000 saved
How to Claim It
The property tax exemption is automatically applied in Florida — your county property appraiser excludes the solar system’s value when assessing your property. You do not need to file a separate application. Your assessed value stays the same after installation. If you are concerned, contact your county property appraiser’s office to confirm the exemption has been applied correctly.
Florida Solar Sales and Use Tax Exemption — 6%
What It Is
Under Florida Statute 212.08(7)(hh), all solar energy equipment and installation costs are exempt from Florida’s 6% state sales and use tax. This is not a rebate you claim — it is applied automatically at the point of sale by your installation contractor.
What’s Covered
- Solar panels and modules
- Inverters (string, micro, power optimiser)
- Battery storage systems
- Racking and mounting systems
- EV chargers installed as part of a solar project
- Labour and installation costs
- Monitoring systems
What It’s Worth
At an average Florida system price of $24,200, the 6% sales tax exemption saves the typical homeowner approximately $1,452 upfront — automatically, with no paperwork required.
How to Claim It
Your solar installer is legally required to apply this exemption. You do nothing. If an installer quotes you a price that includes Florida sales tax, that is either an error or a red flag. Confirm with your installer that the quoted price already excludes Florida sales tax.
Florida Net Metering — Full Retail Rate for Investor-Owned Utility Customers
Why Net Metering Is Florida’s Most Powerful Incentive
Net metering is not usually classified as a “rebate” or “tax credit” — but for Florida homeowners, it is arguably the most financially significant solar benefit available. Without net metering, a solar system that generates more electricity than your home needs at any given moment would simply waste that surplus. Net metering converts that surplus into bill credits, effectively turning the grid into a free battery.
How Florida Net Metering Works
When your solar panels produce more electricity than your home is using, the excess flows to the grid. Your electric meter runs backward — or in modern smart meters, your utility tracks the export separately. You receive a bill credit at the full retail rate for every kWh you export. At night, on cloudy days, or when your usage exceeds production, you draw from the grid and use those credits first. You only pay for net electricity consumption.
Which Utilities Offer Full Retail Net Metering
| Utility | Territory | Net Metering Rate | Monthly Minimum Bill | Annual Credit Handling |
|---|---|---|---|---|
| Florida Power & Light (FPL) | Most of FL (43 counties) | Full retail (~$0.13–$0.14/kWh) | Basic charge only | Cash credit on January bill for unused annual credits |
| Duke Energy Florida | Central FL / West FL | Full retail (~$0.13/kWh) | $30/month minimum | Non-firm wholesale rate (~$0.02/kWh) for unused year-end credits |
| Tampa Electric (TECO) | Tampa Bay area | Full retail (~$0.13/kWh) | Basic charge only | Annual cash-out at avoided cost for remaining credits |
| Florida Public Utilities (FPU) | Panhandle / NE Florida | Full retail | Varies by rate class | Annual settlement |
Important: Municipal Utilities and Co-ops
Municipal utilities (JEA in Jacksonville, Orlando Utilities Commission, Gainesville Regional Utilities, TECO Sun Select, SMUD equivalent) and rural electric cooperatives are NOT required under Florida law to offer full retail net metering. Their programmes vary significantly. Always verify net metering terms with your specific utility before signing an installer contract.
The Net Metering Risk to Watch
Florida Local Solar Incentives by City and Utility — 2026
Florida has no statewide cash rebate programme. However, a growing number of cities, municipal utilities, and county programmes offer solar-specific rebates, grants, and low-interest financing. Here is every active local programme we have verified for 2026.
Storage in Florida — Worth It?
Storage value depends on utility billing, outage needs and loads. Batteries can improve resilience, but are not automatically required for good economics. New battery installations completed in 2026 do not qualify for the expired §25D homeowner credit.
Florida Electricity Rate Trends — Why 2026 Is a Strong Year to Go Solar
FPL Rate History and Projections
Florida Power & Light, which serves approximately 75% of Florida’s population, has locked in a four-year rate increase plan from 2026 to 2029. The typical FPL residential bill has increased approximately 45% since 2020. Projected increases under the 2026–2029 plan:
| Year | Avg. FPL Bill (1,000 kWh) | Annual Increase |
|---|---|---|
| 2024 | ~$128/month | Baseline |
| 2025 | ~$131/month | +~2.3% |
| 2026 | ~$136/month | +~3.8% |
| 2027 | ~$143/month | +~5.1% |
| 2028 | ~$146/month | +~2.1% |
| 2029 | ~$148/month | +~1.4% |
Source: SunVena Solar analysis of FPL rate filings, December 2025.
Duke Energy Florida and TECO
Duke Energy Florida bills increased approximately $7.54 for residential customers in January–February 2026, but then decreased by approximately $44 in March 2026 due to removal of the storm cost recovery charge related to 2024 hurricane cleanup. TECO (Tampa Electric) bills increased $8.88 per 1,000 kWh as of January 2026 due to base rate increases. Both utilities project continued modest annual increases through 2029.
Florida Solar by Region — Sun Hours, Costs, and Local Incentives
| Region / City | Primary Utility | Peak Sun Hours/Day | Avg. System Size | Notable Local Incentives |
|---|---|---|---|---|
| Miami / South Florida | FPL | 5.8–6.5 | 10–12 kW | State tax benefits; verify local options |
| Fort Lauderdale / Boca Raton | FPL | 5.6–6.2 | 10–12 kW | Boynton Beach Energy Edge ($1,500) |
| Orlando / Central Florida | OUC, Duke Energy | 5.2–5.6 | 11–13 kW | Check OUC programme status |
| Tampa Bay / St. Pete | TECO, Duke Energy | 5.0–5.5 | 11–14 kW | TECO Sun Select (community solar) |
| Jacksonville | JEA | 5.0–5.4 | 11–14 kW | JEA Battery Rebate up to $2,000 |
| Gainesville | GRU | 5.0–5.3 | 11–14 kW | GRU programmes — verify current |
| Tallahassee | Tallahassee Utilities | 4.8–5.2 | 12–15 kW | Solar loans up to $20,000 |
| Fort Myers / Naples | FPL | 5.8–6.3 | 10–12 kW | State tax benefits; verify local options |
| Sarasota / Bradenton | FPL | 5.5–6.0 | 10–12 kW | State tax benefits; verify local options |
| Dunedin / Clearwater | Duke Energy / TECO | 5.0–5.4 | 11–13 kW | Dunedin Solar Grant ($0.25/W) |
| Lakeland | Lakeland Electric | 5.2–5.6 | 11–13 kW | Lakeland Electric Battery Rebate (50%, up to $1,000) |
How to Stack Florida Solar Incentives for Maximum Savings
Florida’s incentive stack is simpler than California’s or New Jersey’s but still requires deliberate planning to capture every available benefit. Here is the optimal order of operations:
Step 1 — Confirm Your Utility Territory and Net Metering Terms
Before anything else, confirm which utility serves your property. If you are in FPL, Duke Energy Florida, TECO, or FPU territory, you have full retail net metering. If you are in a municipal utility or co-op territory, verify net metering terms directly with your utility before evaluating solar economics.
Step 2 — Check Local Rebate Programme Availability
Before signing with an installer, verify whether your city or municipality has an active solar rebate programme. Jacksonville’s battery rebate, Boynton Beach’s Energy Edge, Dunedin’s grant, and Lakeland’s battery rebate all have limited annual funding. Confirm the programme is open before contracting — some programmes have waitlists.
Step 3 — Size Your System for Net Metering Optimisation
Under Florida’s full retail net metering, your utility will only grant export credits for systems sized at up to 115% of your average monthly usage (FPL’s limit — other utilities have similar caps). Work with your installer to size your system at 100–110% of your actual usage based on 12 months of bills. Oversized systems waste money without proportional benefit.
Step 4 — Compare Ownership and Financing
Compare cash purchases, loans, leases and PPAs using total payments, ownership, maintenance and transfer terms. No financing method restores §25D for a new 2026 installation. Lease/PPA providers may have separate business-tax eligibility; any benefit passed to the homeowner must be documented.
Step 5 — Check Tax Eligibility Without Assuming a New Federal Credit
Check whether a tax claim relates to an earlier qualifying installation or eligible carryforward. Do not claim a 30% homeowner credit for a new 2026 installation. Use current IRS guidance.
Step 6 — Confirm Property Tax Exemption With Your County
While the property tax exemption is automatic under Florida law, it is worth confirming with your county property appraiser’s office after installation that the solar system value has been excluded from your home’s assessed value.
HOA Rules and Solar in Florida — What the Law Protects
Florida homeowners in HOA communities have meaningful legal protections for solar installation, though HOA rules are not completely without force.
Florida Statutes Chapter 163 and HOA Solar Rights
Florida law restricts HOAs from enforcing any rule, covenant, or restriction that “effectively prohibits” solar collectors or other energy devices on a residential property. This means HOAs cannot flatly ban solar panels.
What HOAs CAN Still Do
- Require advance architectural approval before installation
- Specify reasonable aesthetic requirements — such as flush-mounting or panel colour preferences
- Determine a roof location oriented south or within 45° east or west of due south, if that location does not impair effective operation
- Review the proposed roof location within the limits of Florida Statutes §163.04
What HOAs CANNOT Do
- Outright prohibit solar panels on any area of your roof
- Require a location that impairs the effective operation of the collectors
- Use restrictions that prohibit or have the effect of prohibiting solar collectors
- Unreasonably delay or withhold architectural approval
Practical Advice
Submit your proposed roof location and system plans for association review before installation. Review times vary; any placement determination must meet §163.04 rather than an assumed percentage-output rule.
Frequently Asked Questions
Does Florida have a state solar tax credit?
No. Florida has no state solar income tax credit. State tax exemptions are separate from the federal homeowner credit, which ended for new expenditure after December 31, 2025.
Is the 30% federal solar tax credit still available in Florida in 2026?
No. New homeowner solar installations completed in 2026 do not qualify for §25D. The earlier 2032 timetable was superseded by Public Law 119-21. Earlier qualifying installations and eligible carryforwards are separate.
What is Florida’s net metering policy in 2026?
Florida requires all investor-owned utilities (FPL, Duke Energy Florida, Tampa Electric, and Florida Public Utilities) to offer net metering at the full retail rate. Under full retail net metering, excess solar electricity your system exports to the grid is credited at the same rate you pay to buy electricity. This is one of the most favourable net metering policies in the US and significantly better than California’s current NEM 3.0 avoided-cost export rate.
Does Florida have a battery storage rebate?
Verify any local storage rebate directly with its administrator before contracting. Amounts and funding can change. New 2026 battery installations do not qualify for the expired federal homeowner credit.
How long does a solar installation take in Florida?
Typically 2–4 months from signed contract to Permission to Operate. Florida’s permitting process varies significantly by county — Miami-Dade, Broward, and Palm Beach counties can take 4–8 weeks; smaller counties often process permits in 2–3 weeks. Utility interconnection with FPL typically takes 3–6 weeks for residential systems. Duke Energy Florida interconnection takes 4–8 weeks typically.
Can I go solar with an HOA in Florida?
Florida Statutes §163.04 prohibits covered restrictions that prohibit, or have the effect of prohibiting, solar collectors. An association can determine a roof location oriented south or within 45° east or west of due south only if it does not impair effective operation. Do not apply generic 20% or $2,000 limits to Florida. Read the statute.
Do solar panels increase my Florida property taxes?
No. Florida law provides a 100% property tax exemption for the added value of residential solar installations. Installing a $24,200 solar system that adds $20,000 to your home’s value creates zero additional property tax liability — permanently.
What happens to my net metering credits if I generate more than I use?
Unused monthly net metering credits carry forward to the following month within the same calendar year. At the end of the calendar year (typically January for FPL), any remaining unused credits are settled in cash — but at a lower rate than retail (FPL pays out at an avoided-cost rate; Duke Energy Florida pays out at approximately $0.02/kWh). This makes it important not to significantly oversize your system relative to your actual usage.
📚 Data Sources
EnergySage Florida Solar Market Data, February 2026
IRS Residential Clean Energy Credit — current cutoff
Florida Statutes § 196.175 — Property Tax Exemption for Renewable Energy
Florida Statutes § 212.08(7)(hh) — Solar Equipment Sales Tax Exemption
Florida PSC — Net Metering Rules (Rule 25-6.065, F.A.C.)
FPL 4-Year Rate Plan 2026–2029 (FPSC Docket)
Duke Energy Florida Rate Announcements 2026
SunVena Solar FPL Rate Timeline Analysis, December 2025
Florida Statutes Chapter 163 — HOA Solar Rights
EcoWatch Florida Solar Incentives Guide 2026
SolarReviews Florida Solar Incentives Guide 2026