Florida is not called the 'Sunshine State' for nothing — it ranks third among all U.S. states in terms of solar potential. Learn about the tax incentives, rebates, and programs available to Florida homeowners.

Florida is not called the "Sunshine State" for nothing — in fact, it ranks third among all U.S. states in terms of solar potential. More and more people are realizing that and installing solar panels on the roofs of their Florida homes.

And while solar energy systems have become more commercially viable than ever before, they're still not a cheap investment. Luckily, the worldwide drive for sustainability and cleaner energy has spurred many government and private entities to offer great solar incentives in Florida.

Federal Solar Tax Credit — 2026 Update

The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners who purchase and install a solar system in 2026 or later no longer qualify. See the IRS Residential Clean Energy Credit page for the official guidance.

The one exception: Solar leases and power purchase agreements (PPAs). When you lease or sign a PPA, the installer owns the equipment and can claim commercial solar tax credits — those savings are typically passed through in the form of a lower monthly rate.

What drives the payback math in 2026: Florida's property tax exemption, sales tax exemption, net metering, and rising utility rates are now the primary financial drivers for Florida homeowners going solar.

Florida Property Tax Exemption

Florida law provides a 100% property tax exemption for the added value that solar panels bring to your home. This is significant because solar panels typically increase home value by $15,000–$25,000 — but you won't pay a single extra dollar in property taxes because of it.

This exemption is automatic — you don't need to apply for it separately.

Florida Sales Tax Exemption

Solar energy equipment is exempt from Florida's 6% sales tax. On a $20,000 system, that's $1,200 in savings right off the top.

Net Metering in Florida

Florida utilities are required by law to offer net metering to residential solar customers. When your system produces more electricity than you use, the excess is sent to the grid and you receive a credit on your utility bill.

Florida's major utilities and their net metering policies:

Florida Power & Light (FPL) — Credits at retail rate, monthly true-up. Serves West Palm Beach, Jupiter, Port Saint Lucie, Lake Worth, and Wellington.
Duke Energy Florida — Credits at retail rate. Serves Clermont, Oviedo, and Winter Garden.
Tampa Electric (TECO) — Credits at retail rate. Serves Tampa and Brandon.
Florida Public Utilities — Credits at retail rate.

Local Utility Rebates

Some Florida utilities offer additional rebates for solar installation. Check with your specific utility for current programs, as these change frequently.