Is solar worth it in Orlando in 2026?
Short answer: yes — and more so than most people realize, even without the federal tax credit. Orlando is one of the strongest solar markets in the country for three reasons: abundant sunshine, competitive installer pricing, and Florida's full retail net metering policy which ensures Duke Energy and OUC credit your excess solar energy at the same rate you pay for electricity.
The big change in 2026 is the expiration of the 30% federal residential tax credit (Section 25D), which was eliminated by the One Big Beautiful Bill Act signed in July 2025. For homeowners buying a system outright with cash or a loan, that credit is gone. But Florida's own incentives — the sales tax exemption, property tax exemption, and net metering — remain fully intact and are more valuable than most people realize.
The 30% federal residential solar tax credit expired December 31, 2025. Homeowners purchasing solar outright can no longer claim it. However, lease and PPA options still qualify for a commercial version of the credit through 2027 — installers typically pass those savings through as lower monthly rates.
Orlando solar incentives that still apply in 2026
Even without the federal credit, Orlando homeowners have access to a strong set of incentives that meaningfully reduce the cost and payback period of a solar installation.
Florida Sales Tax Exemption
All solar equipment and installation labor in Florida is exempt from the 6% state sales tax. On a typical Orlando system costing $22,000, that's $1,320 in immediate savings at purchase — with no application required. Your installer should apply it automatically.
Florida Property Tax Exemption
Installing solar increases your home's value — studies show by an average of 4%. Florida exempts 100% of that added value from property tax assessment. That means your tax bill won't go up a dollar, even as your home becomes more valuable.
Full Retail Net Metering (Duke Energy & OUC)
This is the biggest ongoing incentive for Orlando homeowners. Both Duke Energy Florida and OUC are required to credit excess solar energy you send to the grid at the full retail electricity rate — currently around $0.145/kWh. That means on sunny days, your meter essentially runs backwards. Over the course of a year, a well-sized system can offset nearly 100% of your electricity bill.
Full retail net metering is worth thousands of dollars per year to Orlando solar owners. Unlike states that pay only wholesale rates for excess power, Florida ensures you get full credit — making solar economics significantly stronger here.
PACE Financing
Property Assessed Clean Energy (PACE) financing is available across Florida including Orlando. It allows homeowners to finance a solar system with no upfront cost, repaying through their property tax bill over time. There's no traditional credit check, and because the loan is tied to the property rather than the borrower, it can transfer to the next owner if you sell.
How much do solar panels cost in Orlando in 2026?
The average cost of solar in Florida has dropped to approximately $2.20 per watt in 2026, down from $3.00+ just a few years ago. For a typical Orlando home with a $187/month electric bill, you'd need roughly a 9–10 kW system, which comes to approximately $20,000–$22,000 before any incentives.
After the Florida sales tax exemption, your net cost drops to roughly $18,700–$20,700. With full retail net metering saving you approximately $159/month, you're looking at a payback period of roughly 9–12 years — and then 13+ years of essentially free electricity after that.
10kW system · $22,000 gross cost · −$1,320 FL sales tax exemption · = $20,680 net cost · $159/mo savings · ≈ 10.8-year payback · $47,000+ in 25-year savings (assuming 3% annual utility rate increase)
Duke Energy vs OUC — which is better for solar?
Both utilities serve the Orlando area and both offer full retail net metering, which is the key metric for solar economics. Duke Energy is the larger provider and serves most of the greater Orlando metro. OUC (Orlando Utilities Commission) is a municipal utility serving the city of Orlando itself and some surrounding areas.
The main practical difference is interconnection timelines. OUC tends to have faster approval processes for residential solar systems, while Duke Energy's process can take 30–90 days. Neither offers cash rebates for solar, but both comply with Florida's net metering mandate — which is ultimately what matters most for your bottom line.
Use our free Orlando solar calculator
Enter your monthly electric bill below to get an instant estimate of your savings, system size, and payback period — pre-loaded with Orlando's local sun hours, utility rates, and 2026 incentives.