Florida has long been one of the best states for residential solar — and that's still true in 2026, even after a significant federal policy shift last year. If you've been putting off a decision because the incentive picture feels confusing right now, this guide will clear it up.
Here's what's actually available, what changed, and how to think about your return on investment.
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The Federal Tax Credit: What Happened
The most important thing to know upfront: the federal residential solar tax credit (Section 25D) expired on December 31, 2025.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, ended the 30% credit for homeowners who purchase or finance a solar system. Systems that were fully installed by December 31, 2025 still qualify when filing 2025 taxes — and any unused credit from previous years can still be carried forward — but new residential installations in 2026 and beyond do not qualify for this credit.
The one remaining federal pathway involves third-party ownership — solar leases and Power Purchase Agreements (PPAs). Because the financing company owns the system, it can claim the commercial Investment Tax Credit (Section 48E) and pass some of that savings along through lower monthly payments. That credit is available through the end of 2027.
If you're evaluating lease vs. purchase, this is a meaningful factor in the comparison right now. A Lunex advisor can walk you through how the economics stack up for your specific situation.
Florida's Incentives: Still Strong
While the federal credit is gone for purchased systems, Florida's own incentive structure was never dependent on it. The state-level benefits remain fully in effect and are among the most favorable in the country.
Property Tax Exemption
Under Florida Statute 193.624, the added value a solar system brings to your home is completely exempt from property tax assessment. That exemption applies to solar panels and qualifying battery storage systems.
In practice, this means your home value goes up without your tax bill going up. A solar installation that adds $25,000–$30,000 in home value could save you $500–$600 per year in property taxes depending on your county's millage rate — roughly $12,000–$15,000 over the life of the system at current rates.
No action required. Your county property appraiser will note the installation and exclude it from taxable assessed value per state law.
Sales Tax Exemption
Florida exempts solar energy equipment from state sales and use tax. This covers panels, inverters, racking, and related components certified by the Florida Solar Energy Center.
Given that Florida's state sales tax is 6% (plus local surtaxes that can push it to 7–7.5% in some counties), this exemption typically saves $1,500–$2,000 on an average-sized system — and it's automatic at the point of purchase.
Full Retail Net Metering
Florida is one of a shrinking number of states that still requires investor-owned utilities to credit solar customers at the full retail rate for excess electricity exported to the grid.
This means every kilowatt-hour your panels produce that you don't use immediately is worth exactly as much as the electricity you would have bought from your utility. For FPL, Duke Energy Florida, and Tampa Electric customers, that credit rolls over month to month throughout the year. Unused credits at the end of the annual cycle are paid out in cash, typically at the utility's wholesale rate (around 3–4 cents per kWh).
Florida's net metering rules have faced legislative challenges in the past — most notably a 2022 bill that would have phased down compensation rates, which Governor DeSantis vetoed. Full retail rate net metering remains the law as of 2026, though it's worth noting the policy environment has not been entirely stable. Getting your system installed and interconnected locks in your access to the current program.
System sizing note: Florida utilities require residential systems to be sized no larger than 115% of your annual household electricity consumption.
Financing Options
For homeowners who want to go solar without a large upfront payment, several programs are available in Florida.
PACE Financing (Property Assessed Clean Energy) allows you to finance a solar installation through your property tax bill. Available in many Florida counties, PACE requires no upfront cost and repayment is tied to the property rather than the homeowner — which can be useful in certain situations. Interest rates tend to run higher than conventional solar loans, so compare carefully.
SELF Loans — The Solar and Energy Loan Fund is a Florida nonprofit offering solar loans up to $50,000 with rates starting around 5%. Designed for homeowners who may not qualify for traditional financing. Worth exploring if conventional options aren't available to you, though if you have good credit, a traditional solar loan or home equity product will typically offer better terms.
Leases and PPAs — As mentioned above, third-party ownership is the only remaining path to a federal tax benefit on a new installation in 2026. Monthly payments are typically lower than a loan payment, but you don't own the system and miss out on some long-term upside. The 20-25 year contract terms also deserve careful reading.
Conventional Solar Loans — For most homeowners with reasonable credit, a $0-down solar loan remains the strongest ownership option. You own the system, benefit from the property and sales tax exemptions, and eliminate or dramatically reduce your electricity bill.
Local Utility Programs
A few Florida utilities offer rebates or programs beyond the statewide net metering requirements:
- JEA (Jacksonville) — Offers up to $4,000 for qualifying battery storage installations.
- City of Tallahassee — Low-interest loans up to $20,000 at 5% APR, repaid on your utility bill.
- OUC (Orlando) and Lee County Electric — Full retail net metering programs available for customers not served by the major IOUs.
Municipal utility and co-op programs vary significantly, so it's worth checking directly with your provider if you're not served by FPL, Duke, or TECO.
What's the ROI Picture in 2026?
The honest answer is that the economics are still favorable, just not as dramatically as they were when the federal credit was available.
Florida's combination of high solar irradiance (~230+ sunny days per year), rising utility rates, full retail net metering, and statewide tax exemptions still produces strong financial returns. Most estimates place payback periods for Florida residential solar in the 8–12 year range in 2026, depending on system size, utility, and financing structure. After payback, a 25-year system lifetime means 13–17 years of net savings — typically in the range of $20,000–$40,000 for an average Florida home.
Electricity rates in Florida have trended upward at both FPL and Duke in recent years, and every rate increase makes your solar investment more valuable retroactively.
The biggest variable is your utility. FPL customers tend to see faster payback due to higher electricity rates and strong irradiance in South Florida. Duke and TECO customers in the Tampa Bay area and central Florida follow close behind.
Is Solar Still Worth It in Florida?
For most homeowners with a suitable roof and above-average electricity bills, yes — though the calculus is now more dependent on your specific utility rates, usage, and financing than it was when a $6,000–$9,000 federal credit was in play.
The state-level incentives — no property tax hit, no sales tax on equipment, full retail net metering — remain genuinely strong. The right sizing and the right installer make a meaningful difference in how much you capture.
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This post reflects current policy as of April 2026. Solar incentive programs change — we update this guide regularly. Always consult a tax professional regarding your specific tax situation.