The Sunshine State, fittingly, ranks third among states for solar panels installed, just behind California and Texas.
All that Florida sunshine (and the threat of hurricanes) helps, but so do the incentives available to Floridians who want to install solar panels on their roofs. If you’re considering adding solar panels to your Florida home, here’s what you need to know.
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Federal Solar Tax Credit
Most Florida residents are eligible to receive the Federal Solar Tax Credit — also known as the Residential Clean Energy Credit. This allows eligible homeowners to deduct up to 30% of their solar panel installation cost from their federal income taxes. Many Florida homeowners also pair battery storage with their solar panel system. Conveniently, energy storage systems also qualify for the Residential Clean Energy Credit.
Florida Net Metering Program
Most Florida homeowners who install solar panels are eligible for net metering. Net energy metering is a unique billing mechanism that allows you to earn credit towards your electricity bill.
When your solar panels produce more electricity than you are using:
- The excess electricity is sent to the electricity grid to power other homes and businesses nearby.
- Since you are offsetting the utility company’s need to produce that amount of electricity, they compensate you in the form of bill credits.
When you need more power than your solar panels can produce:
- Your electricity will come from the grid instead.
- Your electricity provider will record how much electricity you use and charge you for that amount, minus any credits you’ve previously earned.
At the end of the month, your electricity provider will charge you only for the net usage: the total difference between the electricity your panels produce and the electricity you use.
In Florida, all four investor-owned utility companies and several electric cooperatives offer 1:1 net metering. This means the credit is the same value as the rate of electricity the utility charges you. This is great, as some states are moving to systems that offer credits below the retail rate called net billing. Solar panels with net billing can still save you money, but net metering will typically save you more.
Those four utility companies are:
- Florida Power & Light (FPL)
- Duke Energy
- Tampa Electric (TECO)
- Gulf Power
Municipal utilities and electric cooperatives are not governed by the same law, but some still offer net metering. Others offer net billing or some other variation of the system.
| Utility | Net metering type |
|---|---|
| Florida Power & Light (FPL) | 1-to-1 net metering |
| Florida Power & Light - North | 1-to-1 net metering |
| Duke Energy - Florida | 1-to-1 net metering |
| Tampa Electric Company (TECO) | 1-to-1 net metering |
| Orlando Utilities Commission (OUC) | 1-to-1 net metering |
| Kissimmee Utility Authority (KUA) | Net billing |
| Lee County Electric Cooperative (LCEC) | 1-to-1 net metering |
| Sumter Electric Co-op (SECO) | Net billing |
| Peace River Electric Cooperative (PRECO) | Net billing |
| Withlacoochee River Electric Cooperative (WRECO) | 1-to-1 net metering |
| City of New Smyrna Beach (UCNSB) | 1-to-1 net metering |
| City of Winter Park | 1-to-1 net metering |
| City of Tallahassee (Your Own Utilities) | 1-to-1 net metering |
| Lakeland Electric | 1-to-1 net metering |
| Gainesville Regional Utility (GRU) | Net billing |
| Jacksonville Electric Utility (JEA) | Net billing |
Property Tax Exemption
Going solar can increase the value of your home. Florida enhances that value by being one of several states that provides a 100% property tax exemption for residential solar panels, plus any accompanying battery storage devices. This means that although your home value may increase, you won’t pay any additional property taxes because you got solar panels installed.
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Sales Tax Exemption
In addition to a 100% property tax exemption for residential solar panels, Florida law also exempts solar from its sales and use tax. According to the Florida Department of Revenue, the exemption applies to equipment and any component currently certified by Florida Solar Energy Center as a qualifying solar energy component. This may include:
- Solar panels
- Inverters and mounting hardware
- Electrical equipment including disconnect switches and wiring
- Energy storage unit (solar battery)
- Other accessories necessary for function
Contact a tax professional for complete tax and financial advice.
Local Utility Rebates
Some local electric cooperatives and municipal utilities may also offer solar rebate programs not listed here. To explore every available financial incentive in Florida that can help offset the cost of your system even further, visit the Database of State Incentives for Renewables & Efficiency.
If you’re interested in installing solar at your home, start by reaching out to a reputable solar installer. Estimate your savings with Palmetto’s solar savings calculator, or reach out to a solar expert today.
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Frequently Asked Questions
Does Florida offer net metering?
Florida’s investor-owned utilities and some of the municipal and cooperative utilities offer 1-to-1 net metering. That means the electricity you send to the grid earns you credits worth the retail rate of electricity (what you pay your utility). Some Florida municipal and electric cooperatives offer versions of net billing, where the credits you earn are worth less than the retail rate.
Does Florida have a solar tax credit?
Floridians can likely take advantage of the federal solar tax credit, but the state doesn’t offer its own tax credit. Florida does have property tax and sales tax exemptions for solar panel systems.
Do solar panels make sense in Florida?
Solar panels can definitely make sense — Florida has the third most solar panels of any state. Whether they make sense for you depends on the specifics of your roof, your energy usage, your utility’s solar policies, and more.
Will solar panels save me money in Florida?
Solar panels can save you money, but they won’t always. In some instances, a combination of low electricity bills, higher solar costs, a shaded roof, or weak incentives could mean you won’t save money.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
