Florida's solar market sits in an interesting spot in 2026 — it's still one of the more favorable states for solar economics, despite losing the federal Section 25D credit. The state's sales and property tax exemptions, full retail net metering (for now), and solid sun exposure create a genuine business case. The catch: you'll need hurricane-rated equipment, and state net metering policy is under active political pressure.
Disclaimer: Cost estimates are based on Lawrence Berkeley National Laboratory's Tracking the Sun 2024 report and NREL PVWatts data. Section 25D expired December 31, 2025 — quotes including a 30% federal residential credit are out of date. Electricity rates from EIA Electric Power Monthly. Get at least three installer quotes before deciding.
Key Takeaways
- A typical 8 kW Florida system costs ~$22,400 at $2.80/watt (LBNL 2024) with no federal 25D credit
- Florida's sales tax exemption on solar equipment and 100% property tax exemption for added home value are real, ongoing savings
- Full retail net metering (FPL, Duke, TECO) still applies in 2026 — but state legislation has attempted to reduce export credits; stay informed
- At $0.141/kWh (EIA 2025), Florida electricity rates support an 8–11 year payback on a right-sized system
- Hurricane hardening matters: IBC-rated panels and racking cost more but are required in most Florida counties
What Does Solar Cost in Florida in 2026?
Florida's installed solar costs fall in the middle of the national range. The LBNL Tracking the Sun 2024 report places the Florida median at approximately $2.80/watt — lower than California or New York, somewhat higher than Texas. Labor costs are moderate, permitting fees vary widely by county, and the competitive installer market keeps margins in check.
| System Size | Gross Cost at $2.80/W | Annual Production (est.) | Notes |
|---|---|---|---|
| 6 kW | $16,800 | ~12,100 kWh/year | Smaller home, low usage |
| 8 kW | $22,400 | ~16,100 kWh/year | Typical Florida single-family home |
| 10 kW | $28,000 | ~20,200 kWh/year | Larger home, pool, or EV charging |
| 12 kW | $33,600 | ~24,200 kWh/year | High-usage home or two EVs |
Production estimates use 5.5 peak sun hours per day, representative of central Florida (Orlando area). South Florida (Miami, Fort Lauderdale) averages 5.5–6.0 peak sun hours. North Florida and the Panhandle average 5.0–5.5. NREL's PVWatts Calculator gives ZIP-code-specific estimates.
Florida's Solar Incentives in 2026
Florida has no state income tax, which means tax credits that apply against income tax — like the expired Section 25D — were never directly beneficial to Florida homeowners anyway. The state's actual solar incentives are property-based and sales-tax-based, which means they benefit everyone equally regardless of income.
| Incentive | Type | Value | Who Qualifies |
|---|---|---|---|
| Sales Tax Exemption (FL Statute 212.08) | Upfront cost reduction | Saves 6% on solar equipment | All Florida homeowners |
| Property Tax Exemption (FL Statute 196.175) | Ongoing tax savings | Solar added value excluded from assessed value | All Florida homeowners |
| Net Metering (retail rate) | Ongoing bill credit | Export kWh credited at full retail rate | FPL, Duke Energy FL, TECO, JEA customers |
On a $22,400 system, the 6% sales tax exemption saves approximately $1,344 upfront. The property tax exemption prevents your annual property taxes from rising when the solar system increases your home's assessed value — at Florida's average effective rate of ~0.83%, a $22,400 system adding $18,000 in home value saves roughly $149/year in avoided property taxes.
Net Metering in Florida: Full Retail, For Now
Florida's investor-owned utilities — FPL (Florida Power & Light), Duke Energy Florida, Tampa Electric (TECO), and Gulf Power — all currently offer net metering at the full retail rate. That means when your solar panels produce more than you consume, the excess kWh earns a credit at the same rate you'd pay to buy electricity: roughly $0.14/kWh.
Full retail net metering is valuable and meaningfully different from the avoided-cost rates seen in Texas, Nevada, and post-NEM-3.0 California. It means system sizing to 90–110% of your consumption makes financial sense — you get real value for the excess you export.
The Policy Risk
Florida has made two attempts in recent years to restructure solar net metering away from full retail rates toward lower avoided-cost rates. HB 741 in 2022 passed the legislature but was vetoed. Similar legislation resurfaced in 2023. As of 2026, full retail net metering remains intact — but homeowners considering solar should be aware that this policy could change, and a rate reduction would affect the ROI of systems installed today.
If Florida does reduce net metering export rates, systems installed before any change would likely be grandfathered under existing terms for a period (typically 10–20 years in other states that have made similar transitions). Locking in today while full retail net metering is active is one argument for acting sooner rather than later.
Hurricane Hardening: The Florida-Specific Cost Factor
Every Florida solar installation must meet the requirements of the Florida Building Code, which incorporates wind speed standards significantly higher than most other states. After Hurricane Ian (2022) and Hurricane Milton (2024), most Florida counties require panels and racking rated for wind speeds of 130–170 mph depending on location.
This requirement adds real cost compared to an equivalent installation in a non-hurricane state:
- Hurricane-rated racking systems: adds $500–$1,500 to installation cost
- Impact-rated panels: some manufacturers offer hurricane-tested panels; not all panels qualify
- Roof condition requirement: insurers and installers often require roof to be within 10 years of replacement before installation proceeds
The insurance angle is also relevant. Some Florida homeowners insurers have started scrutinizing solar installations, particularly on older roofs. Before getting solar quotes, confirm with your homeowner's insurance provider that your policy remains unchanged with solar installed.
According to NREL research on panel performance after hurricanes, properly installed and rated systems have a strong track record in Florida — but the key phrase is "properly installed." Verify any installer's Florida-specific track record and their racking certifications.
Florida Solar Payback Math
At $0.141/kWh average (EIA, 2025) and with full retail net metering, an 8 kW system in central Florida looks approximately like this:
- Annual production: ~16,100 kWh
- Estimated self-consumption (70%): 11,270 kWh × $0.141 = $1,589 savings
- Estimated export (30%): 4,830 kWh × $0.141 = $681 export credits
- Total annual benefit: ~$2,270
- Gross system cost: $22,400
- After sales tax exemption (~$1,344): ~$21,056 net cost
- Estimated payback: ~9.3 years
Add an EV that charges at home and the annual benefit increases by $600–$900/year (displacing grid electricity with solar-produced power), bringing payback to 7–8 years in that scenario. Use the Solar ROI Calculator to model your specific numbers.
FPL vs. Duke Energy vs. TECO: Does It Matter Which Utility You Have?
For most Florida homeowners, the utility affects billing structure but not the fundamental solar economics, since all three offer retail net metering.
| Utility | Service Area | Net Metering Policy | Notable Features |
|---|---|---|---|
| Florida Power & Light (FPL) | Southeast & East FL, parts of Central | Full retail net metering | Largest utility; straightforward solar interconnection |
| Duke Energy Florida | Central FL (Tampa Bay, Orlando area) | Full retail net metering | Offers SolarChoice program for renters |
| Tampa Electric (TECO) | Hillsborough County area | Full retail net metering | Rapid growth area; many new installs |
| JEA (Jacksonville) | Jacksonville metro | Full retail net metering | Municipal utility; slightly different interconnection process |
All four offer the same basic net metering structure. Where they differ is in interconnection timeline (FPL tends to be faster) and the specific billing mechanics for net metering credits.
Bottom Line
Florida solar in 2026 works well — particularly for homeowners with full retail net metering utilities, good sun exposure, and plans to stay in their home for 8+ years. The sales and property tax exemptions reduce real costs from day one. The absence of Section 25D has raised the gross cost, but it didn't change the fundamental economics much for Florida homeowners who never benefited from it as an income tax credit anyway (no state income tax means the credit was always limited to federal taxes owed).
The main risk to watch: Florida net metering reform. Full retail net metering is currently intact but has faced legislative challenges. Installing in 2026 while that policy remains favorable is a reasonable consideration.
Run your specific payback estimate with the Solar ROI Calculator. If you're comparing cash purchase to a lease or PPA, the Solar Lease vs. Buy vs. PPA Calculator can model the difference for your situation.
Related Guides
- Is Solar Worth It in 2026? — National payback analysis and state comparison to help you decide whether the math works.
- Net Metering Guide 2026 — Full explanation of how net metering works and which states have reformed export rates.
- Solar Panel Cost by State in 2026 — See how Florida's costs compare to every other state.
- Home Battery Storage Cost in 2026 — Whether battery storage makes sense in Florida given net metering and hurricane risk.
