Florida Solar Incentives 2026: Why the Sunshine State Is Still a Top Pick

If you're a Florida homeowner researching solar panels, you've probably heard the bad news: the federal 30% Residential Clean Energy Credit expired at the end of 2025. That was a significant incentive — on a typical Florida system it saved homeowners roughly $9,700.

But here's what most articles won't tell you: Florida's own incentive stack is so strong that the state remains one of the best places in America to go solar in 2026. Between a 100% property tax exemption, a full sales tax waiver, and mandatory retail-rate net metering from the state's largest utilities, Florida homeowners still see strong payback periods and long-term savings.

Let's break down exactly what's available and what the numbers look like.

Florida's 100% Property Tax Exemption for Solar

This is the big one. Under Florida Statute 193.624, residential solar energy systems — including battery storage — are 100% exempt from property tax assessment through December 31, 2037.

What does that mean in practice? A typical 14.71 kW solar system in Florida adds an estimated $20,000–$30,000 to a home's resale value, according to Zillow research on solar premiums. In most states, that added value would increase your annual property tax bill by $200–$600 per year depending on local mill rates. In Florida, that increase is zero.

Over a 20-year system lifetime, this exemption saves Florida homeowners roughly $4,000–$12,000 in avoided property taxes — money that directly improves your solar ROI.

Sales Tax Exemption: Saving 6%+ on Day One

Florida also exempts all solar energy equipment from its 6% state sales tax. On a $32,365 system (the current average), that's an immediate $1,942 in savings you don't have to think about — the exemption is applied automatically at the point of sale.

Eligible equipment includes solar panels, inverters, mounting hardware, electrical components, battery storage systems, and certified accessories. This applies to both purchased and leased systems.

Net Metering: Getting Full Value for Your Excess Power

Florida's investor-owned utilities — which serve the vast majority of the state's population — are required to offer full retail-rate net metering for residential solar customers. That means every kilowatt-hour your system sends back to the grid is credited at the same rate you'd pay to consume it.

Here's how the major utilities handle it:

Florida Power & Light (FPL) — the state's largest utility serving roughly 5.8 million accounts — offers 1-to-1 net metering. Credits roll over month to month and are settled annually, with any remaining excess paid out at the utility's avoided cost rate (typically 3–5 cents per kWh).

Duke Energy Florida and Tampa Electric (TECO) also provide full retail net metering under the same framework.

Municipal utilities and cooperatives vary. Some, like Lee County Electric Cooperative and Lakeland Electric, offer 1-to-1 net metering. Others, like Orlando Utilities Commission and Jacksonville Electric Authority, use net billing at reduced credit values. If you're served by a municipal utility, check your specific program before sizing your system.

What Happened to the Federal Tax Credit?

The federal Residential Clean Energy Credit (Section 25D), which offered a 30% tax credit on solar installations, expired on December 31, 2025 under the One Big Beautiful Bill Act signed in July 2025.

If you purchased and installed solar before the end of 2025, you can still claim the credit on your 2025 tax return. But for new installations in 2026, the credit is no longer available for homeowner-purchased systems.

There is one workaround: the Section 48E Investment Tax Credit still applies to solar systems owned by businesses, including solar leasing companies. Some lease and PPA providers are passing a portion of this benefit through to customers in the form of lower monthly payments. If you're considering a lease or PPA in Florida, ask your provider specifically about 48E pass-through savings.

The Numbers: What Solar Costs in Florida Right Now

As of April 2026, here's what the Florida solar market looks like based on EnergySage marketplace data:

• Average cost per watt: $2.20 (installed)
• Average system size: 14.71 kW
• Average total cost: $32,365 (before state incentives)
• Average payback period: 11.09 years
• Estimated 25-year savings: $52,080

Those numbers already account for the absence of the federal tax credit. When you factor in the sales tax exemption ($1,942 saved) and the property tax exemption (potentially $4,000–$12,000 over the system's life), the effective cost drops further.

For context, the average Florida electricity rate is rising. FPL's residential rate has climbed from roughly 11.5 cents per kWh in 2020 to over 14 cents per kWh in 2026, a 22% increase in six years. If that trend continues — and most analysts expect it will — your solar savings accelerate over time while your system cost is locked in.

Why Florida Still Ranks Among the Best Solar States

Even without the federal credit, several factors keep Florida in the top tier:

Sun exposure. Florida averages 5.2–5.7 peak sun hours per day, ranking in the top five nationally. More sun means more production, which means faster payback.

Rising electricity rates. FPL and Duke Energy have both filed for rate increases in recent years, and Florida's growing population puts continued pressure on grid infrastructure costs. Solar locks in your energy cost for 25+ years.

Hurricane resilience with batteries. After Hurricane Ian in 2022 and Hurricane Milton in 2024, battery backup adoption in Florida has surged. The property tax exemption covers battery storage too — a significant financial advantage for homeowners adding a Tesla Powerwall 3 ($9,200) or Enphase IQ 5P ($7,800) to their system.

No state income tax. Florida has no state income tax, which means there's no state-level solar tax credit to miss out on. The incentive structure was always built around property and sales tax exemptions rather than income tax credits — making it inherently more resilient to federal policy changes.

How to Maximize Your Florida Solar Investment

1. Get multiple quotes. The price difference between the cheapest and most expensive installer in Florida can be 30%+ for the same equipment. Use EnergyScout's solar calculator to compare options quickly.

2. Size your system for net metering. Since FPL, Duke, and TECO offer full retail credit, sizing your system to offset 100% of your annual usage maximizes your return. Oversizing wastes money since excess annual credits are paid at the much lower avoided cost rate.

3. Consider battery storage. Florida's hurricane risk makes backup power genuinely valuable — not just financially but for safety and peace of mind. With the property tax exemption covering batteries, the math works better here than in most states. Explore battery options on EnergyScout.

4. Check your utility. If you're on a municipal utility or co-op without full net metering, your payback calculation changes significantly. Run your zip code through EnergyScout's incentive finder to see exactly what's available at your address.

5. Don't wait for the federal credit to come back. There's no current legislation to restore the Section 25D residential credit. Meanwhile, electricity rates continue to rise and solar equipment costs are stable. Every month you wait is a month of utility bills you'll never recover.

The Bottom Line

Florida's solar incentive structure was never dependent on the federal tax credit the way some states were. The combination of a 100% property tax exemption (through 2037), full sales tax waiver, and mandatory retail-rate net metering from the state's biggest utilities creates a strong financial case that stands on its own.

At $2.20 per watt installed, an 11-year payback period, and estimated savings of $52,080 over 25 years, solar in Florida remains one of the best home investments available — even in a post-ITC world.

Ready to see what solar could save you? Check your address on EnergyScout and get a personalized estimate in under two minutes.

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Sources

1. EnergySage, "Florida Solar Panel Cost" (April 2026)
2. Florida Legislature, Statute 193.624 — Renewable Energy Property Tax Exemption
3. DSIRE, "Florida Net Metering"
4. Palmetto, "Florida Solar Incentives" (2026)
5. EIA, "State Electricity Profiles — Florida"
6. SEIA, "Florida Solar Factsheet"
7. Zillow, "Solar Panels and Home Values"