Is Solar Worth It in Florida? The Real Math for 2026

Florida has some of the best solar resource in the continental U.S., full retail net metering protected by gubernatorial veto, a 6% sales tax exemption on equipment, and a 100% property tax exemption on added home value. Those structural advantages remain intact in 2026 even as the federal picture shifted.

The changed element: the residential federal ITC (Section 25D) expired December 31, 2025, so homeowners who buy outright see longer paybacks than in prior years. Florida’s moderate electricity rate ($0.14/kWh) means each kilowatt-hour is worth less per unit than in high-rate states. What offsets that is sheer volume: Florida households use far more electricity than the national average, and the sun delivers more of it than nearly anywhere else in the country. Here’s how the numbers work.

What Floridians pay for electricity

Florida’s average residential electricity rate is $0.14/kWh (EIA State Electricity Profiles, 2025). That’s slightly below the national average of roughly $0.16/kWh.

Florida Power & Light (FPL) serves the largest territory, covering South Florida, the east coast, and parts of central Florida. Rates run $0.12–$0.15/kWh depending on usage tier. Duke Energy Florida covers the Tampa Bay area, central, and north-central Florida with similar ranges. Tampa Electric (TECO) serves the immediate Tampa area at $0.13–$0.15/kWh.

The average Florida household uses about 1,247 kWh per month, well above the national average, driven by air conditioning from April through October (EIA State Profile, 2024). At $0.14/kWh, that’s roughly $2,100 per year in electricity costs.

Rates of $0.14/kWh are not as high as California ($0.28) or Massachusetts ($0.25), which means each kilowatt-hour your panels produce is worth less per unit. But Florida’s high consumption and excellent sun offset this with sheer volume.

Florida’s solar resource

Florida averages 1,750 peak sun hours per year (NREL PVWatts). Unlike Oregon or Washington, where there’s a dramatic east-west split, Florida’s variation is a north-south gradient.

South Florida (Miami, Fort Lauderdale, West Palm Beach): expect 1,850–1,950 peak sun hours. Miami averages about 5.2 peak sun hours per day across the year. This is among the best solar resource in the continental U.S.

Central Florida (Orlando, Tampa, Sarasota): 1,700–1,800 peak sun hours. Still excellent, comparable to parts of Texas.

North Florida (Jacksonville, Tallahassee, Gainesville): 1,600–1,700 peak sun hours. Lower than the south, but still well above the national average of roughly 1,500.

A typical 7 kW system in Miami produces roughly 10,640 kWh per year. The same system in Jacksonville produces closer to 9,400 kWh. Both are strong numbers compared to most states.

One factor unique to Florida: humidity and afternoon cloud buildup. Summer afternoons often bring thunderstorms that reduce production during peak hours. Annual totals remain high, but daily production curves are less predictable than in dry-sun states like Arizona or Colorado.

Available incentives

Federal Investment Tax Credit (ITC): The residential ITC (Section 25D) expired December 31, 2025. H.R. 1 (“One Big Beautiful Bill”), signed July 4, 2025, eliminated it for homeowner-owned systems placed in service after that date (IRS.gov). If you install in 2026 with a cash purchase or solar loan, you receive no federal credit. Systems installed before January 1, 2026 are grandfathered at 30%. Lease and PPA customers are unaffected: the third-party owner of those systems can still claim the commercial ITC (Section 48E, available through at least 2027) and typically passes the benefit through as a lower contracted rate.

Florida state incentives: None. Florida has no state income tax, so there is no mechanism for a state solar tax credit. There is no statewide rebate program either (DSIRE, 2025).

Sales tax exemption: Florida exempts solar energy systems from the 6% state sales tax. On a $21,000 system, that’s $1,260 you don’t pay. This is a real, tangible savings that most states with sales tax don’t offer.

Property tax exemption: Florida exempts 100% of the added value of a solar energy system from property tax assessment. Your panels increase your home’s market value without increasing your property tax bill.

Utility rebates: Some Florida utilities offer occasional rebate programs, but these are inconsistent and typically oversubscribed. Do not count on utility rebates in your base-case calculation. If one is available when you install, treat it as a bonus.

Net metering: protected by law (for now)

Florida requires full retail rate net metering for utilities with 100,000+ customers (DSIRE/Florida PSC). This covers FPL, Duke Energy Florida, Tampa Electric, and JEA in Jacksonville.

Full retail net metering means every kilowatt-hour you export to the grid earns a credit at the same rate you pay to buy electricity. At $0.14/kWh, each exported kWh is worth $0.14 in credits.

The political context matters. In 2022, the Florida legislature passed HB 741, which would have phased out full retail net metering and replaced it with lower avoided-cost compensation. Governor DeSantis vetoed the bill, preserving the current policy. Another attempt could come in any legislative session. If you’re considering solar in Florida, the current net metering policy is a significant part of the financial case, and it’s worth understanding that it has been and will continue to be a political target.

Credits roll over monthly. At the annual true-up, excess credits are typically paid at a lower avoided-cost rate. Size your system to match your annual usage rather than significantly exceed it.

Realistic payback period

Let’s run the numbers for two Florida scenarios.

These paybacks are longer than they were when the 30% federal ITC was in effect (roughly 9.9 and 11.2 years respectively). They are still comparable to Texas (14–16 years without federal subsidy) and reflect the current incentive environment. The combination of excellent sun and full retail net metering continues to do real work here.

Rate increases: Florida electricity rates have been rising 2–4% annually. FPL implemented significant rate increases in 2022 and 2023. If rates rise 3% per year, your year-10 savings are 34% higher than year-1, and the effective payback drops by 1–2 years.

System lifespan: Panels last 25–30 years. With a payback in the 14–16 year range, you still get 10–15 years of essentially free electricity. Lifetime savings for a Miami system run roughly $15,000–$25,000. For Jacksonville, $10,000–$18,000.

Hurricanes, humidity, and insurance

This is the section most Florida solar articles either skip or sensationalize. The reality is more nuanced.

Wind resistance: Modern solar panels are tested to IEC 61215 and UL 61730 standards, which require withstanding wind loads of 140+ mph. Most properly racked systems survive Category 3 hurricanes. The panels themselves are rarely the failure point. Flying debris is the primary risk.

Insurance: Most homeowner’s insurance policies cover solar panels under dwelling coverage. Check your policy to confirm. Some insurers add a small premium ($50–$150/year) for rooftop solar. Factor this into your payback calculation, but it’s rarely a deal-breaker.

Humidity and salt air: Coastal installations face accelerated corrosion on racking hardware. Use stainless steel or marine-grade aluminum racking if you’re within a few miles of the coast. This adds $500–$1,000 to installation cost. Panels themselves are sealed and handle humidity well, but dirty panels from pollen, dust, and salt film can reduce output by 2–5% if not occasionally rinsed.

Post-hurricane grid outages: Standard grid-tied solar systems shut down during grid outages (anti-islanding protection). If you want power during hurricane-related outages, you need a battery backup system, which adds $8,000–$15,000 to the project cost. This is a resilience decision, not a financial one. The battery rarely improves the ROI math.

HOA protections

Florida Statute 163.04 is one of the strongest solar access laws in the country. It prohibits HOAs, condo associations, and local governments from banning solar installations or imposing restrictions that significantly increase cost or decrease system efficiency.

An HOA can require reasonable aesthetic standards (like placing panels on a rear-facing roof section if it doesn’t significantly reduce production), but cannot prohibit solar outright. If your HOA tries to block your installation, the statute is your legal backstop.

Financing options

Cash purchase: Returns the most over the system’s life, and in Florida two state exemptions sweeten it: the 6% sales-tax exemption lowers what you pay up front, and the property-tax exemption means the home value the system adds is not taxed. With Florida’s strong production, cash buyers see the cleanest payback even without a federal credit.

Solar loan: Rates of 6–9% APR over 10–25 years is more typical in the current market. At $0.14/kWh and high production, monthly savings may cover a long-term loan payment, but run the numbers for your specific rate and term. Shorter loan terms have higher payments but better total economics.

HELOC: Often a lower rate than a dedicated solar loan, with interest that may be deductible when the funds go toward home improvement. A shorter term raises the payment but cuts total interest.

PACE financing: Florida is one of the states with active residential PACE programs, which finance solar through an assessment repaid on your property-tax bill rather than a conventional loan. Terms and county availability vary, so confirm the specifics locally before counting on it.

Lease/PPA: Third-party ownership, no upfront cost, lower total savings. Because the system owner (not you) can claim the commercial ITC (Section 48E, available through at least 2027), lease and PPA customers can still benefit from a version of the federal subsidy passed through as a lower contracted rate. Make sure the PPA rate is meaningfully below your utility rate and watch for annual escalators above 2–3%.

The honest verdict

Florida’s structural advantages are real and intact: some of the best sun in the continental U.S., full retail net metering (HB 741 vetoed, still law), no sales tax on equipment ($1,260 saved on a typical system), and a 100% property tax exemption on added home value. Lease and PPA customers have an additional path: the commercial ITC (Section 48E) remains available to third-party system owners through at least 2027, and that benefit is typically passed through as a lower contracted rate. With paybacks in the 14–16 year range and panel lifespans of 25–30 years, the math leaves 10–15 years of essentially free electricity after the system pays for itself.

The honest caveat: the expiration of the 30% residential ITC for homeowner-owned systems stretched paybacks from the low double digits to the current range. There is no state solar incentive. And net metering, while protected today, has been a legislative target and could change. Those factors belong in any honest assessment.

The biggest risk to Florida solar economics is political, not meteorological. Net metering has been targeted by utility-backed legislation, and any future reduction in export credits would stretch payback periods further.

For homeowners weighing the numbers in Florida: the sun, the net metering policy, and the two state tax exemptions are doing real work, even without a federal backstop. A 14–16 year payback still leaves a decade or more of savings over a typical system’s life. Run your specific numbers before deciding.

FAQ

How much does solar cost in Florida in 2026?

A typical residential system (6–8 kW) costs $18,000–$24,000. The federal Section 25D residential ITC expired December 31, 2025 (IRS.gov), so homeowners installing in 2026 with a cash or loan purchase receive no federal credit. The 6% state sales tax exemption saves an additional $1,000–$1,400 and is still in effect.

Does Florida have a state solar tax credit?

No. Florida has no state income tax, so there is no mechanism for a state solar tax credit. The federal Section 25D residential ITC also expired December 31, 2025 (IRS.gov). The remaining financial incentives for 2026 buyers are the sales tax exemption (6% saved on equipment) and the property tax exemption for the added home value. Lease and PPA customers can still benefit from a federal subsidy: the commercial ITC (Section 48E) is available to third-party system owners through at least 2027 and is typically passed through as a lower contracted rate.

How does net metering work in Florida?

Florida requires full retail rate net metering for utilities with 100,000+ customers, which includes FPL, Duke Energy Florida, Tampa Electric, and JEA. Excess electricity you send to the grid earns credits at your full retail rate. Credits roll over month to month, with an annual true-up. A 2022 bill to phase out full retail NEM was vetoed by the governor, but similar legislation could return.

Do solar panels survive Florida hurricanes?

Modern panels are tested to withstand 140+ mph winds (IEC 61215). Most properly installed systems survive Category 3 hurricanes without damage. The primary risk is flying debris, not the wind load on the panels themselves. Homeowner’s insurance typically covers solar under dwelling coverage. Standard grid-tied systems do shut down during outages; if you want power during a hurricane, you need a battery backup.

Can my HOA block me from installing solar in Florida?

No. Florida Statute 163.04 prohibits HOAs, condo associations, and local governments from banning solar installations. They can set reasonable aesthetic guidelines, but cannot prohibit solar or impose restrictions that significantly increase cost or decrease system efficiency. This is one of the strongest solar access laws in the country.

Comparing other states

Solar math shifts with each state’s electricity rates, sun hours, and net metering rules. See the state-by-state solar comparison to weigh your options side by side.

Data sources: electricity rates and household usage (EIA State Electricity Profiles, 2024, released Nov 2025; Apr 2026), federal tax credit status (IRS.gov, Section 25D; H.R. 1 signed July 4, 2025), incentives and net metering (DSIRE, 2026; Florida PSC), sun hours (NREL PVWatts). Data current as of June 2026. Energy rates, incentive programs, and tax law change over time; verify current figures before deciding.