Solar Incentives in Florida
Florida homeowners installing solar in 2026 can draw on several active state-level programs. A statutory property-tax exclusion removes 100% of the added assessed value attributable to a residential solar system from property tax calculations, so a solar installation does not raise a homeowner's property tax bill. A permanent sales-tax exemption eliminates Florida's state sales and use tax—plus applicable local surtaxes—on solar equipment and components. Florida's Public Service Commission requires investor-owned utilities to offer net metering for customer-owned systems up to 2 MW; excess kilowatt-hours roll forward as monthly credits for up to twelve months, with any remaining surplus paid out annually at the utility's as-available energy rate. Because that payout rate varies by utility, homeowners should confirm the specific terms with their own provider. Florida statute also authorizes local PACE financing programs that let property owners repay solar improvement costs through non-ad valorem assessments on their property tax bill, with terms varying by local administrator. Two utility-specific rebates exist: Orlando Utilities Commission offers up to $900 toward a solar thermal water heater, and Clay Electric Cooperative offers up to $600 at $0.01 per output BTU for qualifying solar water heaters.
On the federal side, the residential Clean Energy Credit under Internal Revenue Code §25D—commonly called the 30% federal tax credit—expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). A homeowner who installs a new residential solar system in 2026 does not qualify for that credit. The absence of this credit meaningfully lengthens payback periods compared to prior years, making the remaining state exemptions and utility programs proportionally more significant to the overall economics of a new installation.
Florida's residential electricity rate averaged approximately 14.86 cents per kilowatt-hour as of March 2026, a slight decrease from the prior year. At that rate, avoided electricity costs remain the primary driver of long-term savings, and the property-tax and sales-tax exemptions reduce both the upfront and ongoing cost basis of a system.
Figures here are verified as of June 2026 against official sources; programs change with each legislative session and utility rate case, and readers should consult the Florida Public Service Commission, Florida Department of Revenue, and their specific utility directly for current, authoritative program details.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Florida
Property Tax Exclusion for Renewable Energy Source Devices
Florida excludes the value of renewable energy source devices, including solar collectors, photovoltaic modules, inverters, and storage devices, from property tax assessment. For residential property, 100% of the just value attributable to the device is excluded; for nonresidential property, 80% is excluded. The exclusion applies to devices installed on or after January 1, 2013 (residential) or January 1, 2018 (other property). The 2017 amendments creating the nonresidential exclusion expire December 31, 2037.
| Amount | 100% of assessed value attributable to the device excluded for residential property; 80% for nonresidential property. |
|---|---|
| Who qualifies | Residential real property with renewable energy source devices installed on or after Jan 1, 2013; all other real property with devices installed on or after Jan 1, 2018. |
| Administered by | County property appraisers (statutory; Florida Department of Revenue oversight) |
Source: Fla. Stat. § 193.624 Official source →
Solar Energy Systems Sales Tax Exemption
Florida exempts solar energy systems and all components of solar energy systems from the state sales and use tax. The Florida Solar Energy Center certifies to the Department of Revenue the list of equipment and hardware considered a solar energy system or component. The exemption is permanent in statute with no expiration date.
| Amount | 100% exemption from Florida sales and use tax (6% state rate plus applicable local surtaxes). |
|---|---|
| Who qualifies | Purchases of solar energy systems or components certified by the Florida Solar Energy Center; residential and commercial purchasers. |
| Administered by | Florida Department of Revenue |
Source: Fla. Stat. § 212.08(7)(hh) Official source →
Net Metering for Customer-Owned Renewable Generation
Florida Public Service Commission rule requires investor-owned electric utilities to offer expedited interconnection and net metering for customer-owned renewable generation up to 2 MW. Excess kilowatt-hours delivered to the grid are credited to the customer and roll forward to offset usage in subsequent months for up to twelve months; at the end of each calendar year the utility pays out unused credits at an average annual rate based on its COG-1 as-available energy tariff. Tier 1 systems face no application fees or insurance requirements, while larger Tier 2 and Tier 3 systems may have approved application fees and liability insurance requirements.
| Amount | Monthly kWh credits at retail offset; unused credits paid annually at the utility's COG-1 as-available energy rate. System gross power rating may not exceed 90% of the customer's utility distribution service rating, up to 2 MW. |
|---|---|
| Who qualifies | Customers of Florida investor-owned electric utilities with customer-owned renewable generation up to 2 MW; municipal and cooperative utilities offer their own comparable programs. |
| Administered by | Florida Public Service Commission |
Source: Rule 25-6.065, Florida Administrative Code (effective 4/7/2008) Official source →
Florida PACE Financing (Qualifying Improvements to Real Property)
Florida statute authorizes local governments and special districts to operate Property Assessed Clean Energy (PACE) programs that finance qualifying improvements, repaid through non-ad valorem assessments on the property tax bill. Renewable energy improvements, including solar electric, solar thermal, geothermal, wind, and hydrogen systems, are qualifying improvements for both residential and commercial property. Programs are administered locally by counties, municipalities, dependent special districts, or interlocal entities, and the 2024 reform statutes (ss. 163.081-163.087) added consumer-protection requirements for residential PACE.
| Amount | Varies by local program administrator; financing repaid via non-ad valorem property assessments. |
|---|---|
| Who qualifies | Owners of residential or commercial real property within the jurisdiction of an authorized local PACE program; subject to statutory underwriting and consumer-protection requirements. |
| Administered by | Local PACE program administrators (counties, municipalities, special districts) under state statute |
Source: Fla. Stat. §§ 163.08-163.087 Official source →
Florida Keys Electric Cooperative Solar Loan Program
FKEC offers its members loans of up to $35,000 for the purchase and installation of grid-tied distributed energy resource systems, including solar photovoltaic and grid-tied battery storage, installed by a qualified solar installer. Loans are simple-interest, repaid over 10 years or less with no prepayment penalty, and the payment is added to the member's monthly electric bill. Qualification is based on the applicant's billing history with FKEC rather than a credit score.
| Amount | Up to $35,000; term 10 years or less; no prepayment penalty. |
|---|---|
| Who qualifies | FKEC residential members with at least a 12-month clean billing history; commercial members with at least 24 months. |
| Administered by | Florida Keys Electric Cooperative |
Source: program page Official source →
OUC Solar Thermal Water Heater Rebate
Orlando Utilities Commission pays a rebate covering 100% of the cost of installing a solar thermal water heating system, up to $900, paid as a credit on the customer's bill. The system must be certified by the FSEC Energy Research Center or the Solar Rating & Certification Corporation, and receipts must be submitted within six months of purchase. Pool heating systems and water-only customers are excluded.
| Amount | 100% of system cost up to $900, paid as a bill credit. |
|---|---|
| Who qualifies | OUC electric customers installing an FSEC- or SRCC-certified solar thermal water heater; not available to water-only customers; pool heating excluded. |
| Administered by | Orlando Utilities Commission |
Source: program page Official source →
Clay Electric Cooperative Solar Water Heater Rebate
Clay Electric Cooperative offers a solar water heater rebate of $0.01 per output BTU, up to $600, paid as a bill credit and capped at the purchase price. The system must meet Florida Solar Energy Center specifications and be installed by a state-certified solar contractor on an existing residence or facility served by Clay Electric. Applications must be submitted within 180 days of purchase.
| Amount | $0.01 per output BTU, maximum $600, as a bill credit; not to exceed purchase price. |
|---|---|
| Who qualifies | Active Clay Electric accounts; existing residences/facilities only (no new construction); FSEC-spec equipment installed by a certified solar contractor. |
| Administered by | Clay Electric Cooperative, Inc. |
Source: program page Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.