Florida Solar at a Glance
Florida isn’t just the Sunshine State — it genuinely earns the name. At 5.0–5.5 peak sun hours per day, the Miami metro and most of South Florida rank among the top solar resources in the entire country. Even the comparatively cloudier Jacksonville and Orlando areas average 4.8–5.2 hours, well above most of the Northeast and Midwest.
The trade-off: Florida’s electricity rates are $0.13–$0.15/kWh — below average nationally — which softens the bill savings compared to high-rate states. But Florida homes also run more electricity (averaging 1,100–1,400+ kWh/month due to air conditioning running nearly year-round), which means larger systems and more total savings dollars.
The short version: installed solar in Florida runs $2.50–$3.20/watt, putting a typical 10kW system at $25,000–$32,000 installed. The 30% federal Investment Tax Credit (ITC) expired December 31, 2025 — it is not available for 2026 installations. Florida’s state incentives — property tax exemption, sales tax exemption, and net metering — remain fully in effect. Payback periods land in the 9–13 year range depending on utility, location, and system size.
Florida homeowners paying $150–$200+/month for electricity are strong solar candidates. The sun is exceptional, the state incentives are real, and rising FPL and Duke Energy rates only improve the math each year.
The Federal ITC Is Gone — Here’s What That Means
Important: The 30% federal residential solar Investment Tax Credit (ITC) expired December 31, 2025. Homeowners who installed solar before that date could claim a dollar-for-dollar credit equal to 30% of their system cost against their federal income tax liability. For 2026 installations, no federal solar tax credit exists.
On a $28,000 Florida system, the ITC used to cut the effective cost to $19,600. That credit is gone. The full $28,000 is now your out-of-pocket cost, offset only by FL state incentives and long-term energy savings. Payback periods are longer than pre-2026, but Florida’s exceptional sun still makes the economics work — especially compared to less sunny states that are also losing the same credit.
Cost Per Watt in Florida
Installed solar in Florida averages $2.50–$3.20/watt in 2026 — slightly below the national average of $2.80–$3.50/watt. Florida’s large solar market, competitive installer base, and generally simpler roofline (single-story concrete block construction is common) keep prices competitive.
Key factors that move your quote within that range:
- Tile vs. shingle roofs: Florida has a high proportion of clay and concrete tile roofs, which cost more to mount panels on than standard asphalt shingle. Budget an additional $500–$2,000 for tile roof installation.
- Panel tier and efficiency: Budget panels cost less; premium Tier 1 panels (SunPower, REC, Panasonic) cost more per watt but produce more per square foot — important on smaller roof footprints in dense neighborhoods.
- Battery storage: Florida’s hurricane season makes battery storage a serious consideration. Adding a home battery adds $9,000–$15,000 but provides power during outages — a real value proposition here that doesn’t exist the same way in most other states.
- System size: FL homes typically need 10–14kW systems due to high AC usage. Larger systems have lower per-watt costs due to economies of scale.
- Installer competition: Miami, Tampa, and Orlando have dense installer markets with strong competition. More rural areas (Panhandle, Central FL) may see slightly higher quotes.
Total System Costs by Size
The table below shows installed cost ranges for Florida homeowners in 2026. These are gross costs — the 30% federal ITC expired December 31, 2025. Florida’s sales tax exemption (6%) on solar equipment is already reflected (you won’t pay FL sales tax on the panels or installation).
| System Size | Est. Monthly Usage Covered | Installed Cost | Cost Per Watt |
|---|---|---|---|
| 8 kW | ~1,100–1,250 kWh/mo | $20,000–$25,600 | $2.50–$3.20 |
| 10 kW | ~1,370–1,560 kWh/mo | $25,000–$32,000 | $2.50–$3.20 |
| 12 kW | ~1,640–1,870 kWh/mo | $30,000–$38,400 | $2.50–$3.20 |
| 14 kW | ~1,920–2,180 kWh/mo | $35,000–$44,800 | $2.50–$3.20 |
Monthly usage estimates assume 5.2 peak sun hours/day (FL statewide average). Cost ranges reflect market variation across FL installers. FL 6% sales tax exemption already applied — solar equipment is tax-exempt in Florida.
Not sure which system size fits your home? Our solar sizing calculator takes your monthly electric bill and zip code and generates a personalized kW recommendation — sized to cover your actual Florida electricity usage without over-building.
Florida Solar Incentives in 2026
Florida has no state income tax — which means no state tax credit for solar (there’s no income tax to credit against). That surprises some homeowners. But FL still has three substantive incentives that deliver real savings.
1. Florida Property Tax Exemption
Under Florida Statute 196.175, the added value solar panels bring to your home is completely exempt from property tax assessment. Solar systems reliably add 3–5% to home values — on a $450,000 Miami or Orlando home, that’s $13,500–$22,500 in added value you’re not paying property tax on every year.
At Florida’s effective property tax rates (roughly $8–$11 per $1,000 of assessed value), the exemption saves $110–$250/year — every year, for the life of the system. Over 25 years, that’s $2,750–$6,250 in cumulative property tax savings that most homeowners don’t factor into their ROI calculations.
2. Florida Sales Tax Exemption
Under Florida Statute 212.08(7)(hh), solar energy systems are exempt from Florida’s 6% state sales tax (plus any applicable local option surtax). On a $30,000 system, that’s $1,800–$2,400 in immediate savings — the exemption applies to both equipment and installation.
This is a straightforward, upfront benefit. Your installer should automatically apply it — if your quote includes Florida sales tax, push back.
3. Net Metering
Florida state law requires all investor-owned utilities to offer net metering to residential solar customers. When your panels produce more electricity than your home is using — common during sunny Florida afternoons when you’re at work — the excess goes to the grid and your utility credits your account.
Net metering is why system sizing matters in Florida: you want to cover roughly 90–100% of your annual usage. Without battery storage, over-production typically earns a credit (not cash), and the credit structures vary by utility. Florida homes that over-produce in summer can bank credits to offset winter bills, but wholesale vs. retail credit rates differ — check your utility’s current net metering terms before finalizing system size.
How much will solar save you in Florida? →
Enter your monthly electric bill and FL zip code. Get your estimated annual savings, system cost range, and payback period — specific to your FPL, Duke, or TECO territory.
Calculate My FL Solar Savings →Florida by Utility: FPL, Duke Energy, TECO, and JEA
Florida’s major utilities each have different rate structures and net metering terms. Where you live shapes the economics significantly.
FPL (Florida Power & Light) — Miami, Fort Lauderdale, West Palm Beach
FPL is the largest utility in Florida and one of the largest in the US, serving roughly 5.7 million customer accounts across South Florida and the East Coast. FPL territory gets 5.3–5.5 peak sun hours/day — among the best in the country. FPL’s residential rates run $0.13–$0.15/kWh on average, with rate increases approved in recent years as the utility expands solar generation infrastructure.
FPL offers net metering for residential solar. Credits roll month-to-month and are trued up annually. For most Miami-area homeowners, the excellent sun and high AC usage (most homes run 1,200–1,600 kWh/month) make solar a strong fit despite moderate electricity rates.
Duke Energy Florida — Orlando, Clearwater, St. Petersburg
Duke Energy Florida serves approximately 1.9 million customers in Central Florida and along the Gulf Coast. Orlando gets around 5.1–5.3 peak sun hours/day. Duke’s rates have risen in recent years, currently sitting at $0.13–$0.15/kWh for typical residential usage. Duke offers net metering, crediting excess solar production to your bill at the retail rate — among the more favorable structures in the state.
Tampa Electric (TECO) — Tampa, Hillsborough County
TECO serves the Tampa metro with around 830,000 customers. Tampa averages 5.2–5.4 peak sun hours/day. TECO’s rates are competitive within Florida at roughly $0.12–$0.14/kWh. TECO’s net metering program credits solar production to monthly bills. Tampa’s strong sun, hurricane exposure (good battery storage case), and rising rates make it a solid solar market.
JEA — Jacksonville
JEA (Jacksonville Electric Authority) is a community-owned utility serving the Jacksonville metro. Jacksonville sits furthest north among Florida’s major metros, averaging 4.8–5.0 peak sun hours/day — still excellent by national standards. JEA’s rates and net metering policies have evolved in recent years; confirm current terms directly with JEA or your installer before sizing a system.
The Hurricane Resilience Case for Battery + Solar
This is the angle that’s genuinely unique to Florida. When a Category 3+ hurricane makes landfall, grid power can be out for days or weeks. A solar-only system without battery storage goes dark during a grid outage — by design, to protect utility workers. A solar + battery system keeps your critical loads running: refrigerator, medical equipment, phone charging, fans.
The economics of battery storage improved significantly in 2025–2026 as costs fell. Adding a Tesla Powerwall 3 or Enphase IQ Battery runs $9,000–$15,000 on top of the system cost, but Florida homeowners also typically carry higher home insurance premiums and have experienced first-hand what extended outages look like. For households with medical equipment dependencies or those who experienced extended outages from past hurricanes, the payback calculus is different from a purely financial ROI model.
If you’re in a coastal or hurricane-prone area, ask your installer about battery sizing for a “critical loads” backup scenario — powering your refrigerator, some lights, and phone charging for 2–3 days costs much less battery capacity than trying to power a whole home normally.
What size solar system does your FL home need? →
Enter your monthly bill and zip code. Get the exact kW recommendation for your home — factoring in Florida sun hours and your utility’s rate structure.
Find My System Size →ROI Timeline: Florida Solar in 2026
Here’s a worked example for a typical Tampa-area homeowner on TECO:
| Detail | Value |
|---|---|
| System size | 10 kW |
| Installed cost (no federal ITC) | $28,000 |
| Annual production (est.) | ~15,200 kWh |
| Annual electricity savings (at $0.13/kWh) | ~$1,980 |
| Property tax savings (est.) | ~$150–$200/yr |
| Total annual benefit | ~$2,130–$2,180/yr |
| Simple payback period | ~12–13 years |
25-Year Cumulative Savings
With electricity rates rising ~4% per year (FPL and Duke Energy have both received approved rate increases), annual savings compound significantly. Here’s the projection assuming 3.5%/year rate escalation and 0.5%/year panel degradation:
| Year | Annual Savings | Cumulative Savings | Net Position |
|---|---|---|---|
| Year 1 | $2,150 | $2,150 | −$25,850 |
| Year 3 | $2,310 | $6,640 | −$21,360 |
| Year 5 | $2,490 | $11,510 | −$16,490 |
| Year 8 | $2,800 | $19,560 | −$8,440 |
| Year 10 | $3,000 | $25,450 | −$2,550 |
| Year 12 | $3,250 | $31,820 | ~Breakeven |
| Year 15 | $3,550 | $42,380 | +$14,380 |
| Year 25 | $5,020 | $77,500 | +$49,500 |
Assumes $28,000 installed cost (no federal ITC — expired Dec 2025), 3.5%/year rate escalation, 0.5%/year panel degradation, property tax savings included. Illustrative — actual results depend on utility, usage, and system performance.
Breakeven around year 12, then 13 more years of essentially free electricity. Total net gain over 25 years: ~$49,500 — on a $28,000 investment, that’s a strong return by any measure, and it comes with reduced utility dependence and hurricane backup capability if you add storage.
Florida Financing Options
Without the federal ITC reducing your effective out-of-pocket cost, financing terms matter more than ever. Here are the main paths:
Solar Loan
The most common approach. You own the system from day one and keep all FL incentives. Rates typically run 3.99%–7.99% APR depending on credit score and term (10–25 years). At 6.99% APR over 15 years on a $28,000 system, monthly payments run about $252 — still competitive with rising utility bills for most FL homeowners. Loan payments are fixed; FPL and Duke energy bills are not.
PACE Financing (Florida-Specific)
Florida is one of the most active PACE (Property Assessed Clean Energy) states. PACE lets you finance solar through a property tax assessment — no traditional loan qualification required. The financing is repaid through your property tax bill. The upside: accessible to homeowners who don’t qualify for traditional solar loans. The downside: PACE liens attach to the property and must be disclosed in a sale. Understand the terms fully before signing.
Home Equity Loan or HELOC
If you have home equity (common in Florida markets where values have risen sharply), borrowing against it typically offers the lowest effective interest rates (5–7% in current conditions) and potential interest deductibility. Your home is the collateral — that’s the risk to weigh.
Solar Lease or PPA
Zero upfront cost, fixed monthly payment or per-kWh rate. You don’t own the panels, so you don’t benefit from the FL property tax exemption increase in home value. Long-term returns are smaller, but for homeowners who can’t qualify for loans or prefer predictable monthly costs without a large upfront investment, a lease or PPA is a viable entry point.
When Solar May Not Make Sense in Florida
Florida is one of the better solar states, but not every homeowner is a great candidate:
- Tile roof near end of life. Removing and reinstalling solar panels for a roof replacement costs $3,000–$6,000. If your clay or concrete tile roof needs replacing in the next 5 years, coordinate both projects simultaneously to avoid the double cost.
- Significant shading from palm trees or structures. Florida’s year-round foliage means shading is consistent. A roof with mature trees casting 30–50% shade loses a proportional share of production. Microinverters or power optimizers mitigate partial shading but don’t eliminate it.
- Planning to sell within 2–3 years. Solar adds home value in Florida, but it’s unlikely you’ll fully recoup a $25,000+ investment on a short holding period. If you’re planning a move, the math changes.
- HOA restrictions. Florida law (the Solar Rights Act) largely prohibits HOAs from blocking solar installations, but aesthetics rules may limit panel placement or visibility. Check your HOA documents before getting quotes.
- Very low electricity usage. If your monthly bill is below $80–$100, the system is small and payback periods extend. Solar adds the most value for homes with high AC-driven bills.
Still on the fence? Our solar decision tool asks 8 questions and gives you a direct go / no-go recommendation based on your actual situation — no sales calls, no pressure.
FAQ
What solar incentives are available in Florida in 2026?
FL homeowners have three state incentives: (1) Property tax exemption — added home value from solar excluded from assessment; (2) Sales tax exemption — no 6% FL sales tax on solar equipment/installation; (3) Net metering — utility credits for excess solar production. The 30% federal ITC expired December 31, 2025 and is not available for 2026 installations. Florida has no state income tax, so there’s no state tax credit — but the property and sales tax exemptions deliver meaningful savings. Use our savings calculator to see the full picture.
How much do solar panels cost in Florida in 2026?
Installed solar in FL runs $2.50–$3.20/watt in 2026. A typical 10kW system (right-sized for many FL homes) costs $25,000–$32,000 installed. Note: the 30% federal ITC expired December 31, 2025, so these are full out-of-pocket costs. FL sales tax exemption applies (6%), so your quote should not include FL sales tax. Get your exact system size here.
Does Florida have net metering?
Yes — Florida state law requires all investor-owned utilities (FPL, Duke Energy Florida, TECO, Gulf Power) to offer net metering to residential solar customers. Excess solar production is credited to your bill. Credit rates and rollover policies vary by utility — FPL, Duke Energy Florida, and TECO each have their own terms. Confirm your specific utility’s current net metering structure before finalizing system size.
Is solar worth it in Florida without the federal tax credit?
Yes. Florida’s 5.0–5.5 peak sun hours/day make it one of the top solar-producing environments in the country. More production per dollar invested compensates for the lost federal credit. Combined with state property and sales tax exemptions, rising utility rates, and hurricane resilience value (especially with battery storage), most FL homeowners paying $140+/month in electricity see solid long-term returns — even at 2026’s full out-of-pocket costs.
What size solar system do I need in Florida?
Most Florida homes need a 10–14kW system — larger than most other states — due to year-round air conditioning driving high electricity usage (1,100–1,600+ kWh/month is common). Smaller homes or those with efficient AC systems may be right-sized at 8–10kW. FL’s excellent sun means more production per kW installed, which is a partial offset to system size. Get your exact personalized recommendation here.