Florida Solar Incentives in 2026: Tax Credits, Net Metering, and More
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Author
Andrew Blok
Electrification and Solar Writer and Editor
Editor
Ryan Barnett
SVP, Policy & New Market Development
The sun gives the state its nickname — the Sunshine State — and its top five rank among states for solar installations.
But residential solar panels make sense when the available sunlight and the cost of going solar and local policies mean they can deliver enough electric bill savings to be worth it.
Solar incentives underwent a huge change in 2025, but there are still solar incentives and policies worth knowing in Florida. Here’s how they break down.
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Federal solar tax credit
The longstanding federal solar tax credit lapsed at the end of 2025 for purchased solar panels. However, a separate tax credit for leased solar systems still exists. While it can only be claimed by the leasing company, those savings can be used to keep your solar lease payment low.
Florida net metering program
Many Florida homeowners who install solar panels are eligible for net metering or net billing. Both systems are different flavors of utility regulations that allow homeowners to earn bill credits for solar electricity they send back to the grid.
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. Under net metering, each kilowatt-hour of electricity you send to the grid offsets one you draw from the grid. Under net billing, those credits are worth less than the full value of a kilowatt-hour.
When you need more power than your solar panels can produce:
- Your electricity will come from the grid instead.
- Your electricity provider charges you for that amount, minus any credits you’ve previously earned.
In Florida, all four investor-owned utility companies and several electric cooperatives offer 1:1 net metering.
Those three utility companies are:
- Florida Power & Light (FPL)
- Duke Energy
- Tampa Electric (TECO)
Municipal utilities and electric cooperatives are not governed by the same law, but some still offer net metering or net billing.
| 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) | Net billing |
| 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 usually increases 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.
See how much you can save by going solar with Palmetto
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 further, visit your utility’s website or contact Palmetto.
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.
See what solar can do for you:
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?
Florida doesn’t have a solar tax credit, but does offer property and sales tax exemptions for solar panels.
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. While it’s not a guaranteed, a combination of high electricity bills, reasonable solar costs, an unshaded roof, and strong incentives can provide solar savings.
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.
