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 (Limited)

Florida has net metering, but it is not uniform across all utilities. Most major utilities, including FPL and Duke Energy Florida, credit excess solar generation at the retail rate. However, net metering policies vary by utility and are subject to change. Some utilities have caps on the amount of solar they will credit in a given month or year.

Contact your local utility to confirm current net metering rules before signing a contract. The DSIRE database provides up-to-date information on state and utility incentives.

Utility Rebates

Several Florida utilities offer rebates for residential solar installation:

FPL Solar Rebate Program: Up to $2,000 rebate for residential systems in FPL’s service area. Eligibility and rebate amounts may vary based on system size and location. Contact FPL or ask your installer for current details.

Duke Energy Florida Rebate: Up to $1,500 rebate for qualifying residential solar systems. Duke Energy Florida’s program is available in parts of central and northern Florida.

Tampa Electric (TECO) and other utilities: Some smaller utilities offer rebates or incentives. Check with your local utility directly.

Utility rebates are typically applied after system installation and inspection. Combine these with the property tax and sales tax exemptions to reduce your net cost significantly.

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 (property tax + sales tax exemption + utility rebate): $3,500 to $4,500
  • Net cost after incentives: $22,000 to $23,000
  • Average annual savings: $1,300 to $1,500
  • Payback period: 9 to 11 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.
  • If you have access to utility rebates, the payback period shortens by 1 to 2 years.

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 (8 to 9 years). FPL service area with $2,000 rebate available.
  • Tampa: Moderate electricity costs (13 cents/kWh), good sun exposure, 9 to 10 year payback. TECO service area.
  • Orlando: Central Florida location with balanced sun exposure and moderate rates. Duke Energy Florida service area with up to $1,500 rebate.
  • Jacksonville: Northern location with slightly lower sun exposure but lower electricity costs. JEA service area with competitive rates.
  • 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. Familiarity with Utility Rebates: A good installer will help you apply for available utility rebates and ensure your system qualifies. They should know the current rules for FPL, Duke Energy, TECO, and other local utilities.

  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.

Get Free Quotes From Vetted Florida Installers

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.

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.