Florida Solar in 2026: The Honest Picture

Florida is one of the sunniest states in the nation, but the solar market here faces a unique challenge: the federal Residential Clean Energy Credit expired at the end of 2025. For homeowners considering solar in 2026, this changes the math. However, Florida’s state-level incentives, strong solar resource, and high electricity costs still make solar a solid investment for most homeowners.

The state has installed over 650,000 residential solar systems to date, and the market continues to grow. What makes Florida different is not federal support, but rather a combination of property tax exemptions, sales tax breaks, and utility rebates that can offset a meaningful portion of upfront costs. Understanding these incentives and how they stack is essential to evaluating whether solar makes financial sense for your home.

This guide covers the current cost landscape, realistic savings scenarios for major Florida cities, available incentives, and how to choose a qualified installer.

Average Solar System Cost in Florida (2026)

A typical 6 kW residential solar system in Florida costs between $24,000 and $29,000 before incentives, or roughly $4.00 to $4.85 per watt. This is slightly below the national average, reflecting Florida’s mature solar market and competitive installer base.

Cost breakdown for a 6 kW system:

  • Equipment (panels, inverter, racking, wiring): $12,000 to $14,000
  • Labor and installation: $8,000 to $10,000
  • Permitting, inspection, and interconnection: $2,000 to $3,000
  • Monitoring and warranty: $1,000 to $2,000

System size varies by home. A typical Florida home uses 10,000 to 12,000 kWh per year, which a 6 to 7 kW system can offset. Larger homes or those with electric vehicles may need 8 to 10 kW systems, costing $32,000 to $42,000.

For current pricing in your area, check EnergySage’s Florida solar cost benchmarks.

Real Florida Homeowner Savings (Sample Scenarios)

Savings depend heavily on location, utility rates, and system size. Here are four realistic scenarios based on major Florida cities.

Miami (FPL service area)

  • System size: 6.5 kW
  • Annual electricity cost before solar: $1,850
  • Annual solar production: 9,100 kWh
  • Estimated annual savings: $1,460
  • 25-year savings (after accounting for degradation and rate increases): $38,000
  • Payback period: 9 years

Tampa (TECO service area)

  • System size: 6 kW
  • Annual electricity cost before solar: $1,620
  • Annual solar production: 8,400 kWh
  • Estimated annual savings: $1,310
  • 25-year savings: $34,000
  • Payback period: 9.5 years

Jacksonville (JEA service area)

  • System size: 6.5 kW
  • Annual electricity cost before solar: $1,540
  • Annual solar production: 8,200 kWh
  • Estimated annual savings: $1,240
  • 25-year savings: $31,000
  • Payback period: 10.5 years

Orlando (Duke Energy Florida service area)

  • System size: 6 kW
  • Annual electricity cost before solar: $1,680
  • Annual solar production: 8,100 kWh
  • Estimated annual savings: $1,290
  • 25-year savings: $33,000
  • Payback period: 10 years

These estimates assume no major rate changes and include the benefit of Florida’s property tax and sales tax exemptions. Actual savings will vary based on your roof condition, shading, system orientation, and your utility’s specific rates and net metering policies.

Florida Solar Incentives Still Available in 2026

Federal Tax Credit (Section 25D) - Expired

The Residential Clean Energy Credit under IRS Section 25D expired on December 31, 2025. Any system placed in service after that date does not qualify. This was a significant change from prior years when homeowners could claim 30% of system costs as a federal tax credit.

The only remaining federal incentive for residential solar is through third-party-owned systems (leases or power purchase agreements) under Section 48E, which allows the lessor to claim a credit. However, the construction of such systems must begin before July 4, 2026. If you are considering a lease, confirm with your installer that the project timeline meets this deadline.

Property Tax Exemption

Florida exempts solar energy systems from property tax assessment. The added home value from a solar installation does not increase your property tax bill. For a $26,500 system, this exemption saves approximately $200 to $400 per year in avoided property tax increases, depending on your county’s assessment rate.

This is one of Florida’s strongest incentives and applies to all homeowners, regardless of income or system size.

Sales Tax Exemption

Florida exempts solar equipment and installation labor from sales tax. On a $26,500 system, the 6% sales tax exemption saves approximately $1,590. This exemption applies to panels, inverters, racking, wiring, and labor costs.

Net Metering (IOUs at Retail Rate)

Florida’s investor-owned utilities (IOUs) are required to provide net metering at the full retail rate under Florida Public Service Commission Rule 25-6.065. That covers Florida Power & Light (FPL), Duke Energy Florida, Tampa Electric Company (TECO), and Florida Public Utilities. Excess kilowatt-hours produced in a billing period roll forward as credits and are reconciled annually, typically at the avoided-cost rate for any year-end surplus.

Municipal utilities (JEA, OUC, Gainesville Regional Utilities, Lakeland Electric, and others) and rural electric cooperatives are not covered by Rule 25-6.065. They set their own interconnection and compensation policies, and the credit structure can differ meaningfully from retail-rate net metering. If you are served by a municipal utility or a co-op, ask for the current tariff in writing before signing a contract.

Confirm your specific utility’s policy with help from the DSIRE database.

Utility Rebates

Florida’s major IOUs do not currently run standing residential solar rebate programs. Older guides still reference an “FPL Solar Rebate Program” or “Duke Energy Florida Rebate,” but those are not active for new residential rooftop systems in 2026. A handful of municipal utilities or co-ops may run small pilot or income-qualified programs from year to year. Check directly with your utility, and confirm against the DSIRE database, rather than relying on a sales pitch.

Is Solar Worth It in Florida Without the Federal Credit?

Without the federal tax credit, the financial case for solar rests on state incentives, electricity savings, and system payback. For most Florida homeowners, the answer is yes.

Payback Analysis:

  • Average system cost: $26,500
  • State incentives (sales tax exemption upfront, plus ongoing property tax exemption): roughly $1,600 upfront, with $200 to $400 per year in avoided property taxes
  • Net cost after sales tax exemption: about $24,900
  • Average annual savings: $1,300 to $1,500
  • Payback period: 10 to 12 years

A 9 to 11 year payback means you break even before the system reaches mid-life. Most solar panels last 25 to 30 years, so you will enjoy 14 to 21 years of free electricity after payback. Over 25 years, cumulative savings typically range from $25,000 to $40,000, depending on location and utility rates.

Decision Framework:

  • If you plan to stay in your home for 10+ years, solar is likely worth it.
  • If your electricity bill is $150+ per month, solar will generate meaningful savings.
  • If your roof is in good condition and receives 4+ hours of direct sunlight daily, your system will perform well.
  • Higher-than-average electricity usage shortens the payback period.

Florida’s high electricity rates (averaging 13 to 15 cents per kWh, among the highest in the nation) and strong solar resource (5.2 kWh/m2/day average) create a favorable environment for solar, even without federal support.

Top Cities for Solar in Florida

  • Miami: Highest electricity costs (15+ cents/kWh), strong sun exposure, fastest payback (9 to 10 years). FPL service area with retail-rate net metering.
  • Tampa: Moderate electricity costs (13 cents/kWh), good sun exposure, 10 to 11 year payback. TECO service area, retail-rate net metering.
  • Orlando: Central Florida location with balanced sun exposure and moderate rates. Duke Energy Florida service area with retail-rate net metering.
  • Jacksonville: Northern location with slightly lower sun exposure but lower electricity costs. JEA service area; as a municipal utility, JEA sets its own terms, so confirm the current net metering tariff before installing.
  • Fort Lauderdale: High electricity costs, strong solar resource, similar payback to Miami. FPL service area.
  • Naples: Southwest Florida with excellent sun exposure and high electricity rates. FPL service area.

What to Look for in a Florida Solar Installer

  1. Licensing and Insurance: Verify the installer holds a Florida electrical contractor license (EECS) and general contractor license (if required). Confirm they carry liability and workers’ compensation insurance.

  2. Experience with Florida Permitting: Florida has specific permitting requirements that vary by county and municipality. Choose an installer with demonstrated experience navigating local codes and interconnection rules.

  3. Net Metering Familiarity: A good installer will know the current net metering tariff for your utility, including the difference between IOUs (FPL, Duke, TECO) bound by PSC Rule 25-6.065 and municipal utilities or co-ops that set their own terms. Ask them to walk you through the interconnection process and the annual reconciliation.

  4. Transparent Pricing: Get itemized quotes that break down equipment, labor, permitting, and incentives. Avoid installers who are vague about costs or push you to decide quickly.

  5. Warranty Coverage: Confirm the installer offers at least a 10-year workmanship warranty and that the equipment carries manufacturer warranties (typically 25 years for panels, 10 to 12 years for inverters).

  6. References and Reviews: Ask for references from recent customers and check independent reviews on Google, Yelp, and the Better Business Bureau. Look for patterns in customer satisfaction.

  7. Post-Installation Support: Ensure the installer provides monitoring setup, maintenance guidance, and responsive customer service. Solar systems require minimal maintenance, but you should have a clear point of contact if issues arise.

Next Steps for Florida Homeowners

The best way to understand your solar potential and costs is to request quotes from multiple installers. Use the SEIA state market data to identify active installers in your area, and cross-reference with the DSIRE incentive database to ensure you understand all available incentives.

When requesting quotes, provide your recent electricity bills (12 months of history) and a photo of your roof. This allows installers to size your system accurately and estimate real-world savings.

Compare quotes on total cost, equipment quality, warranty terms, and the installer’s experience with your specific utility. The lowest price is not always the best value; a slightly higher quote from an experienced, well-reviewed installer often delivers better results and peace of mind.

Want solar power without the installer process at all? A solar generator pairs portable panels with a battery in one box that ships to your door — no permits, no roof work, no sales calls. See our Florida backup power guide for the sizes that fit Florida homes and outage risks.

Sources for 2026 data: IRS, DSIRE (Database of State Incentives for Renewables & Efficiency), Florida Department of Revenue, Florida Public Service Commission, SEIA (Solar Energy Industries Association), NREL (National Renewable Energy Laboratory), EnergySage, FPL, Duke Energy Florida, Tampa Electric Company, JEA.