The short answer
Yes — solar is still worth it in Florida in 2026. But the math changed significantly on January 1, 2026, and most websites haven't caught up. Here's the honest picture.
The federal 30% residential solar tax credit (Section 25D) expired December 31, 2025. For homeowners buying a system outright with cash or a loan, that credit is gone. This extends payback periods by 2–4 years compared to 2025. But Florida's own incentives remain fully intact, electricity rates keep climbing, and the state's abundant sunshine means solar still generates compelling long-term returns for most Florida homeowners.
What changed in 2026
On July 4, 2025, President Trump signed the "One Big Beautiful Bill Act" which eliminated the Section 25D residential solar tax credit effective December 31, 2025. Previously, this credit allowed homeowners to deduct 30% of their solar system cost directly from their federal tax bill — a $7,500 savings on a $25,000 system.
That incentive is gone for homeowners purchasing solar outright. However, the following still apply in 2026:
The 30% federal residential solar tax credit (Section 25D) for homeowners purchasing solar with cash or a loan. This was worth $4,400–$9,000+ on a typical Florida system. It is no longer available.
Florida Sales Tax Exemption: All solar equipment and installation is exempt from Florida's 6% sales tax. On a $22,000 system, that's $1,320 saved at purchase — automatically applied by your installer.
Florida Property Tax Exemption: Solar adds value to your home but Florida law ensures that added value is 100% exempt from property tax assessment. Your tax bill stays flat.
Full Retail Net Metering: FPL, TECO, Duke Energy, and other major Florida utilities must credit excess solar generation at the full retail electricity rate. This is the most valuable ongoing incentive — worth thousands per year.
PACE Financing: Zero-down financing tied to your property tax bill, available statewide. No traditional credit check required.
Battery Storage ITC (30%): If you add battery storage, the 30% federal credit still applies to the battery portion through 2032.
Does the math still work?
Let's run the numbers for a typical Florida homeowner with a $200/month electric bill — about average for the state.
System cost and incentives
| Item | Amount |
|---|---|
| 10kW system gross cost (at $2.20/watt) | $22,000 |
| Federal ITC (Section 25D) | $0 — expired |
| Florida sales tax exemption (6%) | −$1,320 |
| Net system cost | $20,680 |
Annual savings projection
| Year | Annual Savings | Cumulative Savings |
|---|---|---|
| Year 1 | $2,040 | $2,040 |
| Year 5 | $2,292 | $11,020 |
| Year 10 | $2,578 | $23,891 |
| Year 15 | $2,899 | $38,990 |
| Year 25 | $3,668 | $74,000+ |
Assumes 85% bill offset, 3% annual utility rate increase, FL avg $0.145/kWh. Break-even at approximately year 10.
On a $22,000 system with no federal credit, a Florida homeowner with a $200/month bill breaks even around year 10 and accumulates $74,000+ in savings over 25 years. That's a return most traditional investments would envy — especially since electricity costs only go up over time.
Who should go solar in Florida in 2026
Solar isn't right for every Florida homeowner in 2026. Here's an honest assessment of who benefits most and who should wait.
Solar makes strong sense if you:
- Have an electric bill above $150/month. Higher bills mean larger systems, faster payback, and bigger absolute savings. Below $150/month the economics get marginal.
- Own your home with a good roof. You need 10–15 years of ownership remaining to fully benefit from the payback period. And a roof with 10+ years of life left avoids the cost of removing and reinstalling panels.
- Are on FPL, TECO, Duke Energy, or another full retail net metering utility. Florida's major investor-owned utilities offer the best net metering in the state. If you're on a cooperative or municipal utility, confirm their specific net metering policy first.
- Have good sun exposure. Minimal shading from trees or neighboring buildings. A south or west-facing roof is ideal.
- Plan to stay in your home. Or don't mind that solar increases resale value — Florida homes with solar sell for 3–4% more on average.
You might want to wait if you:
- Have a low electric bill under $100/month. The system you'd need is small, the savings are modest, and the payback period extends considerably.
- Need a new roof in the next 2–3 years. Install solar after the roof, not before. Removing and reinstalling panels costs $1,500–$3,000.
- Are on a cooperative or municipal utility with unfavorable net metering. Always confirm your specific utility's policy before signing a contract.
- Are planning to sell in less than 5 years. You likely won't recoup the full cost through bill savings, though you may through increased home value.
If you don't want to purchase outright, solar leases and Power Purchase Agreements (PPAs) are still available — and the installer who owns the system can still claim a commercial version of the federal tax credit through 2027. They pass some of those savings to you through lower monthly rates. You don't own the system but you can go solar for $0 down and start saving immediately.
Why Florida is still one of the best solar states
Despite the federal credit expiring, Florida's fundamentals remain exceptional for solar. Three factors combine to make Florida solar economics stronger than most of the country:
1. Sunshine — the obvious one
Florida averages 5.3–5.6 peak sun hours per day depending on location. That's among the highest in the continental US. More sun means more electricity generated per panel, which means smaller systems needed and faster payback. A 10kW system in Miami generates roughly 40% more electricity annually than the same system in New York.
2. Rising electricity rates
Florida's average electricity rate is approximately $0.145/kWh — and it's been climbing. FPL alone has implemented multiple rate increases in recent years. Every rate increase makes your solar savings worth more. A system that saves you $200/month today may save you $280/month by year 10 — significantly improving your return.
3. Full retail net metering
This is Florida's secret weapon for solar economics. Florida law requires major investor-owned utilities to credit excess solar generation at the full retail electricity rate. In states like California where net metering was cut to wholesale rates, solar economics deteriorated significantly. Florida's policy has held — making every excess kilowatt-hour your panels generate worth the same as one you'd buy from the utility.
How solar economics vary across Florida
Not all Florida solar markets are equal. Here's a quick comparison by major city:
| City | Avg Bill | Sun Hours | Utility | Payback Est. |
|---|---|---|---|---|
| Miami | $215 | 5.6/day | FPL | 8–11 yrs |
| Naples/Fort Myers | $242 | 5.6/day | LCEC/FPL | 8–10 yrs |
| Tampa | $196 | 5.4/day | TECO | 9–11 yrs |
| Orlando | $187 | 5.4/day | Duke/OUC | 9–12 yrs |
| Jacksonville | $168 | 5.3/day | JEA | 10–13 yrs |
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