Solar Incentives Florida 2026: Net Metering and Rebates

Florida added more rooftop solar than almost any other state over the past decade. The reason is not generous rebates. It is a stable stack of three policies: no state sales tax on equipment, no property tax on added home value, and full retail-rate net metering. That stack made solar work even when the sticker price was high.

In 2026, the top of the stack changed. The federal Residential Clean Energy Credit under Section 25D expired for homeowner-owned systems on December 31, 2025. A $25,000 system no longer gets an automatic $7,500 federal discount. Installers who still open sales calls with “30% tax credit” are using outdated language. The new math depends almost entirely on state law and the customer’s utility.

This guide covers every Florida solar incentive that matters in 2026. It explains full retail net metering, state tax exemptions, local rebates, and payback modeling without the federal credit. For the broader federal context, see our post on tax credits for solar products. For help sizing systems and modeling utility rates, SurgePV combines solar design and financial modeling in one platform.

In this guide:

• How the federal credit expiration changes Florida solar math in 2026.
• Which utilities offer full retail net metering and which do not.
• How Florida’s property tax and sales tax exemptions work.
• Local rebates and battery incentives available by city and utility.
• Financing options including PACE and SELF.
• Commercial and third-party ownership pathways under Section 48E.
• The most common mistake installers make when quoting Florida incentives.
• A step-by-step checklist to stack every available benefit.

How Florida Solar Incentives Changed in 2026

Florida’s solar incentives did not shrink in 2026. They shifted. The federal layer came off, and the state and local layers became the whole story.

The Federal Residential Credit Is Gone

The Residential Clean Energy Credit under Internal Revenue Code Section 25D allowed homeowners to claim 30% of qualified solar costs on their federal tax return. It expired on December 31, 2025, after Congress terminated the credit rather than extending it. Homeowner-owned solar, battery, and solar water heating systems placed in service on or after January 1, 2026, no longer qualify.

This matters more in states that built their value proposition around the federal credit. Florida did not. The state’s solar economics have always rested on strong net metering and tax exemptions. A homeowner who installed solar in 2025 might have paid $18,000 after the federal credit. In 2026, that same system costs roughly $25,000 before state and local savings. The payback period stretches, but the project can still work.

Commercial and Lease Systems Still Have a Federal Path

Section 48E, the Clean Electricity Investment Tax Credit, offers a 30% credit for eligible clean electricity projects. Projects that begin construction by July 4, 2026, or are placed in service by December 31, 2027, can qualify. That is why lease and PPA providers can still advertise lower monthly payments in 2026. They own the system and claim the credit.

For homeowners with limited tax liability, a lease or PPA was already attractive. In 2026, the gap between cash purchase and third-party ownership widens because only the third-party owner can access the federal credit.

State Programs Remain Unchanged

Florida Statute § 193.624 still excludes 100% of added solar value from property tax assessments. Florida Statute § 212.08(7)(hh) still exempts qualifying solar equipment from the 6% state sales and use tax. Florida Statute § 366.91 still requires investor-owned utilities to offer net metering. Those three laws were not tied to the federal credit and did not change.

Sources: Florida Statute § 193.624; Florida Statute § 212.08(7)(hh); Florida Statute § 366.91; SEIA Florida Solar Policy.

Florida Net Metering Rules by Utility

Net metering is the billing rule that determines how much a solar customer gets paid for exports. In Florida, the rule depends almost entirely on who sells you electricity.

Investor-Owned Utilities: Full Retail Rate

Florida law requires the four investor-owned utilities to offer net metering at the full retail rate. That means one kilowatt-hour exported earns one kilowatt-hour of credit. The utilities are:

• Florida Power & Light (FPL) – serves roughly 79% of Florida customers.
• Duke Energy Florida – serves northwest and central Florida.
• Tampa Electric Company (TECO) – serves the Tampa Bay area.
• Florida Public Utilities Company (FPU) – serves limited areas including Fernandina Beach and Marianna.

Under this structure, a kWh exported at noon in April is worth the same as a kWh imported at 8 PM in August. That 1:1 credit makes solar-only systems economically strong. It also means batteries are not financially required the way they are in California.

How Credits Roll Over and True Up

Most Florida IOUs credit exports in kilowatt-hours, not dollars. Excess kWh credits roll forward month-to-month. At the end of a 12-month period, any remaining unused credits are paid out at the utility’s avoided-cost rate, typically $0.03–$0.05 per kWh. This is much lower than the retail rate, so installers usually size systems to offset 90–100% of annual usage rather than producing large surpluses.

System size is capped at 2 MW AC per customer service point, which is far above any residential need. Utilities may require that the system not be sized to produce more than 115% of the customer’s historical usage.

Municipal Utilities and Electric Cooperatives: The Exception

Municipal utilities and electric cooperatives are not required by Florida law to offer full retail net metering. Some offer reduced export credits or have moved away from 1:1 metering entirely.

The most important example is the Orlando Utilities Commission (OUC). Effective July 1, 2025, new OUC solar customers receive export credits at the community solar rate, approximately 4.6¢/kWh, rather than the full retail rate. For an OUC customer, the same system that pays back in 9 years under FPL might pay back in 14 years.

Other municipal utilities and co-ops set their own rules. A customer served by JEA, Lakeland Electric, or a rural electric cooperative must verify the current tariff before signing a contract.

Grandfathering Risk

Florida utilities have repeatedly tried to reduce net metering compensation through legislation and regulatory changes. The most visible attempt was SB 1024 in 2022, which led to legal challenges and regulatory uncertainty. As of 2026, full retail net metering remains in place for the four IOUs. When net metering rules change, existing customers are usually grandfathered under the old rules for 10–20 years. That is what happened in California, Nevada, and Hawaii. Installing before a policy change locks in the better rate.

Florida State Tax Exemptions for Solar

Florida has no state income tax, so it cannot offer a state income tax credit. Instead, it offers two broad tax exemptions that reduce the cost of going solar.

Property Tax Exemption

Florida Statute § 193.624 prevents county property appraisers from including the value added by renewable energy systems in the taxable assessment. The exemption covers solar panels, inverters, racking, battery storage, and wiring specific to the solar system. It does not cover structural roof improvements or standard electrical work.

The exemption is automatic. Homeowners do not file an application. When the property is reassessed after installation, the appraiser notes the solar system but excludes its value from the assessed value.

The savings depend on the system value and local millage rate. A $20,000 solar system in Miami-Dade County, where effective property tax rates are roughly 1%, would otherwise add about $200 per year in property taxes. Over 25 years, the exemption saves roughly $5,000 or more. The current exemption is authorized through December 31, 2037.

Sales Tax Exemption

Florida Statute § 212.08(7)(hh) exempts solar energy systems and components from the 6% state sales and use tax. The exemption applies to equipment certified by the Florida Solar Energy Center, including panels, inverters, racking, batteries, disconnect switches, and monitoring equipment. Labor is not exempt.

On a $30,000 system, the sales tax exemption saves $1,800 at the point of sale. Installers should show the exemption as a $0 sales tax line on the invoice. If sales tax was charged in error, homeowners can file Form DR-26S with the Florida Department of Revenue for a refund within three years.

Local and Utility Rebates in Florida

Florida does not have a statewide solar rebate program, but a handful of cities and municipal utilities offer cash incentives. These programs are small compared with California’s SGIP or New York’s NY-Sun, but they stack cleanly with state tax exemptions.

Boynton Beach Energy Edge Rebate

The City of Boynton Beach offers a one-time $1,500 rebate for qualifying rooftop solar systems of 5 kW or larger. The panels must have a minimum efficiency of 17.5%, and the system must be installed by a Florida-certified solar contractor registered with the city. The property must be the owner’s primary residence or principal place of business. Applications must be submitted within 90 days of final inspection.

Dunedin Solar Energy Grant

The City of Dunedin pays $0.25 per watt of installed solar capacity, up to a maximum grant of $2,500. A 10 kW system receives the full $2,500. The program is first-come, first-served based on annual budget funding. Solar permits must be applied for and completed according to city requirements.

Jacksonville Electric Authority Battery Rebate

JEA offers a rebate for qualifying battery storage systems installed with solar. Program details and amounts change, so customers should verify current terms directly with JEA before purchasing.

Orlando Utilities Commission Battery Rebate

OUC residential customers can receive up to $2,000 in rebates for installing a qualifying battery storage system. This is notable because OUC reduced solar export credits in 2025, making batteries more valuable for OUC customers who want to store solar for self-consumption.

Lakeland Electric Battery Rebate

Lakeland Electric solar customers can receive a 50% rebate on the cost of a battery energy storage system, capped at $1,000. The battery must meet minimum capacity and warranty requirements.

Sources: City of Boynton Beach; City of Dunedin; JEA; Orlando Utilities Commission; Lakeland Electric.

Financing Options: PACE and SELF

Without the federal tax credit, financing choices matter more. Florida has two programs designed for homeowners who may not qualify for traditional solar loans.

Property Assessed Clean Energy (PACE)

PACE financing allows homeowners to install solar with little or no money down and repay the cost through an assessment on their property tax bill over 10–20 years. The debt attaches to the property, not the borrower. If the home is sold, the buyer typically assumes the remaining PACE obligation.

PACE has advantages. It requires no credit score minimum, offers fixed rates, and spreads payments over a long term. It also has risks. Some mortgage lenders refuse to finance homes with active PACE liens. The obligation can complicate refinancing or home sales. Homeowners who plan to move within five years should compare PACE carefully against a standard solar loan.

Solar and Energy Loan Fund (SELF)

SELF is a Florida-based nonprofit lender that provides low-interest financing for solar and energy improvements. Unlike traditional lenders, SELF does not require a credit check or impose strict income limits. This makes it an option for homeowners who are underserved by conventional financing. Rates and terms vary, so applicants should compare the total cost against other loan products.

For a deeper comparison of cash, loans, leases, PPAs, and PACE, see our solar financing options guide.

Commercial and Third-Party Ownership Incentives

Residential homeowners who buy systems outright lost the federal credit in 2026. Commercial, agricultural, and third-party-owned projects still have a federal pathway, plus the same Florida tax exemptions.

Section 48E for Commercial and Lease/PPA Systems

Section 48E, the Clean Electricity Investment Tax Credit, offers a 30% credit for eligible clean electricity projects. Projects that begin construction by July 4, 2026, or are placed in service by December 31, 2027, can qualify. Projects over 1 MW AC must meet prevailing wage and apprenticeship requirements to receive the full 30% rate. Otherwise the base rate is 6%.

Bonus adders can push the total credit higher:

• Domestic content bonus: adds 10% for projects that meet U.S. manufacturing thresholds.
• Energy community bonus: adds up to 10% for projects in census tracts tied to fossil fuel employment or brownfield sites.
• Low-income bonus: adds up to 20% for certain qualified low-income residential buildings or economic benefit projects.

For lease and PPA providers, the credit is the reason they can still offer attractive monthly payments in 2026. The savings are indirect, but they are real. Homeowners who do not have enough tax liability to use a credit anyway may find a lease or PPA more attractive than a cash purchase.

Commercial Property Tax Exemption

Florida Statute § 193.624 also applies to commercial properties, though the exact treatment can differ. Non-residential renewable energy property may receive an 80% property tax abatement rather than the 100% exemption available to residential systems. Commercial property owners should confirm the current abatement percentage with their county property appraiser.

For large commercial and industrial arrays, the property tax savings can be significant. A 500 kW rooftop system on a warehouse can add hundreds of thousands of dollars in assessed value. Avoiding property tax on that added value improves project returns over the system lifetime.

Who Benefits Most from Florida Solar Incentives in 2026

The value of Florida’s 2026 incentive stack depends on the utility, the home, and the financing structure.

High-Usage Homeowner in FPL, Duke, or TECO Territory

A household with high summer air conditioning usage served by one of the four IOUs has the strongest case for residential solar. Full retail net metering lets a properly sized system offset nearly all annual usage. The sales tax exemption reduces upfront cost, and the property tax exemption protects long-term value. Payback periods typically fall in the 9–12 year range, depending on system size, electricity rates, and financing costs.

Homeowner in OUC or Co-op Territory

The same system can look very different under a municipal utility with reduced export credits. An OUC customer installing solar after July 1, 2025, receives roughly 4.6¢/kWh for exports instead of the full retail rate. Solar-only payback stretches to 13–16 years. A battery becomes more valuable because it stores midday solar for evening use instead of exporting at the low community solar rate.

Low-Income or Credit-Challenged Homeowner

Florida does not have an income-qualified solar rebate like California’s DAC-SASH. However, PACE and SELF financing can make solar accessible to homeowners who do not qualify for prime solar loans. These programs have tradeoffs, but they fill a gap that the federal credit used to cover for some buyers.

The Biggest Mistake Florida Installers Make in 2026

The most common error is assuming every Florida customer gets the same net metering value. A proposal built for FPL cannot be copied to an OUC customer without changing the export credit assumptions. The difference between full retail net metering and a 4.6¢/kWh community solar rate is large enough to make a project look profitable when it is not.

Verify the Utility Before Quoting

The first step in every Florida proposal should be to confirm the utility. A ZIP code is not enough. The same street can be served by different utilities. The utility determines the net metering value, interconnection timeline, and any local rebate eligibility.

Size for Annual Offset, Not Maximum Production

Because unused credits are paid out at avoided cost at the end of the year, oversizing a system does not help. The goal is to produce roughly 100% of annual usage, not 130%. A 10 kW system on a home that only needs 7 kW will export excess kWh all year and receive a low true-up payment.

Model Without the Federal Credit

Installers should stop defaulting to a 30% federal tax credit in residential proposals. For cash and loan customers, the 2026 model starts at full system cost, then subtracts state and local incentives. Only lease and PPA proposals can include indirect federal credit benefits, and those benefits depend on whether the provider meets Section 48E deadlines.

SurgePV’s solar design software and generation and financial tool let installers model each utility’s net metering rules, export credit rates, and local incentives. For production accuracy, pair it with shadow analysis. When it is time to present, solar proposal software keeps the incentive stack clear and defensible.

How to Stack Florida Solar Incentives

Stacking incentives correctly is more important than finding more incentives. A Boynton Beach customer served by FPL can combine the local rebate, the state sales tax exemption, the property tax exemption, and full retail net metering.

Step 1: Confirm the Utility and Net Metering Tariff

Check the electric bill to confirm the utility. Then verify whether the customer qualifies for full retail net metering or a reduced export credit. This single check changes the entire financial model.

Step 2: Apply the Sales Tax Exemption

Make sure the installer shows $0 Florida sales tax on qualifying equipment. The exemption is automatic at the point of sale. If the invoice includes sales tax on panels, inverters, or batteries, ask for a correction before signing.

Step 3: Check Local Rebates and Battery Programs

Search the customer’s city and utility for active rebates. Boynton Beach, Dunedin, JEA, OUC, and Lakeland Electric all run programs with limited funding. Most require pre-approval or application within a specific window after installation.

Step 4: Choose the Ownership Structure

If the customer buys the system outright or with a loan, there is no federal residential credit in 2026. If the customer leases or enters a PPA, the financier may claim Section 48E and pass part of the savings through as lower monthly payments. Ask any PPA or lease provider to confirm Section 48E eligibility in writing.

Step 5: Verify the Property Tax Exemption

The property tax exemption is automatic, but homeowners should review their next TRIM notice to confirm the solar value was excluded from the assessed value. If the assessed value includes the system, contact the county property appraiser.

Step 6: Document Everything

Keep itemized invoices, interconnection agreements, proof of placed-in-service date, manufacturer certifications, and rebate approval letters. Incentives are increasingly audited, and missing paperwork can delay or cancel a rebate.

What a Stacked Incentive Looks Like

Consider a 10 kW solar system installed for a homeowner in Boynton Beach served by FPL. The gross cost might be $28,000 before incentives.

• Florida sales tax exemption: $28,000 × 6% = $1,680 saved.
• Boynton Beach Energy Edge rebate: $1,500.
• Net out-of-pocket cost: approximately $24,820, plus any financing costs.

With full retail net metering, the system offsets roughly $2,000 to $2,400 in annual electricity bills. The property tax exemption saves another $200 to $400 per year depending on the home value and millage rate. Simple payback falls in the 9–12 year range.

Conclusion

Florida solar incentives in 2026 are different but not weak. The federal residential credit is gone. The state still offers a 100% property tax exemption, a 6% sales tax exemption, and mandatory full retail net metering. Local rebates in Boynton Beach, Dunedin, Orlando, Jacksonville, and Lakeland add smaller but stackable savings.

• Confirm the utility and net metering tariff before quoting any savings.
• Verify local rebates and battery programs early in the sales process.
• Size systems for annual offset, not maximum production.

For installers looking to model these moving parts accurately, SurgePV combines solar design, shading analysis, and incentive-aware financial modeling in one platform.

Frequently Asked Questions

What solar incentives are available in Florida in 2026?

Florida offers a 100% property tax exemption on added solar value through 2037, a 6% state sales tax exemption on qualifying equipment, and mandatory full retail-rate net metering for customers of FPL, Duke Energy Florida, Tampa Electric, and Florida Public Utilities. Local rebates exist in Boynton Beach, Dunedin, Jacksonville, Orlando, and Lakeland. The federal residential tax credit under Section 25D expired for homeowner-owned systems after December 31, 2025.

Does Florida have full retail net metering?

Yes, for the four investor-owned utilities. FPL, Duke Energy Florida, Tampa Electric, and Florida Public Utilities must credit excess solar exports at the full retail rate under Florida law. Credits roll over month-to-month, and unused credits are paid out annually at avoided-cost rates. Municipal utilities and electric cooperatives are not required to offer full retail net metering; some have reduced export credits.

Is the federal solar tax credit still available in Florida in 2026?

No. The 30% federal Residential Clean Energy Credit under Section 25D expired for homeowner-owned systems placed in service after December 31, 2025. Commercial projects and leased systems may still qualify for a 30% credit under Section 48E. Construction must begin by July 4, 2026, and the system must be placed in service by December 31, 2027.

Will solar increase my property taxes in Florida?

No. Florida Statute § 193.624 excludes 100% of the value added by residential renewable energy systems from property tax assessments. The exemption currently runs through December 31, 2037. Your home may appraise higher, but the solar value is not included in the taxable assessment.

Does Florida have a state solar tax credit?

No. Florida does not have a state income tax, so there is no state income tax credit for solar. The main state-level incentives are the property tax exemption, the sales tax exemption, and the net metering law. Some local governments and municipal utilities offer additional rebates or low-interest loans.

What local solar rebates are available in Florida?

Active local programs include the Boynton Beach Energy Edge rebate of up to $1,500, the Dunedin Solar Energy Grant of $0.25 per watt up to $2,500, the Jacksonville Electric Authority battery rebate, the Orlando Utilities Commission battery rebate of up to $2,000, and the Lakeland Electric battery rebate of 50% up to $1,000. Funding is often first-come, first-served and subject to change.

Do I need a battery with solar in Florida?

A battery is not required for net metering, but it provides backup power during hurricanes and grid outages. Unlike California, Florida does not have time-of-use export rates that make batteries financially essential. Many Florida homeowners install batteries for resilience, not rate arbitrage.

How long does net metering approval take in Florida?

For residential systems under 10 kW, approval typically takes 2 to 8 weeks depending on the utility. Tampa Electric often approves in 2 to 4 weeks. FPL and Duke Energy Florida typically take 4 to 8 weeks. Municipal utilities and cooperatives set their own timelines.