Florida Solar Incentives, Tax Credits and Rebates

Florida solar tax breaks

Florida offers a 100% sales tax exemption on solar equipment and a property tax abatement that prevents solar from increasing your property tax bill.

• Sales tax exemption: The Florida Department of Revenue offers a 100% sales and use tax exemption for eligible renewable energy equipment, including solar photovoltaic (PV) systems, solar water heaters and related components.
• Property tax abatement: Solar technologies, including solar photovoltaics, solar water heaters and lithium-ion storage systems, are exempt from the added assessed value for property tax purposes until 2037.

What to know about the federal solar tax credit

The federal solar investment tax credit (ITC) is the most significant financial incentive for many homeowners buying solar panels in Florida. It reduces your federal tax liability by 30% of how much it costs to install solar panels.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If in the year your system becomes operational you owe $15,000 in taxes, the ITC reduces what you owe to $12,000. The credit is nonrefundable but can roll over to the next year.

However, tax credits are more complicated if you’re on a fixed income. “I would only receive a tax credit if I owed taxes,” Ben in Miami told us. “Living on a fixed income you don't have any tax credits because I don't owe any money to the IRS.”

Federal solar tax credit expires at the end of 2025

The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the “One Big Beautiful Bill,” signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.

Solar loan programs

Solar and Energy Loan Fund (SELF) is a unique nonprofit organization that offers solar loans up to $50,000 with rates starting at 5%. Depending on where you live, you might be eligible for the Florida Keys Electric Cooperative loan program or Property-Assessed Clean Energy (PACE) financing.

• Florida Keys Electric Cooperative loans: If you’re a Florida Keys Electric Cooperative customer, you might qualify for funding up to $35,000 to pay for solar projects.
• PACE financing: In some cities, the Florida Property-Assessed Clean Energy (PACE) program helps fund residential and commercial solar projects.

What to know about net metering in Florida

Net metering lets you earn credits for the excess electricity your solar energy system generates and sends to your local power grid. These credits can offset electricity used when the panels aren’t producing (like at night or on cloudy days), effectively lowering monthly utility bills. Utilities like Duke Energy and Florida Power & Light (FPL) offer programs that support net metering.

Residents currently receive a 75% credit for excess solar energy sent to the grid.

“Florida's net metering policy is actually pretty solid right now,” Andrew Lokenauth, a finance expert with experience in the solar markets in Tampa and Miami, explained. “I'm getting roughly 1-to-1 credit for excess power, which has cut my property's electric bill by about 85%. But based on my conversations with local policy makers, I wouldn't count on these great rates lasting forever.”

But clouds may be on the horizon. As of now, residents earn a 75% energy usage credit for the excess power they produce. Beginning in 2026, the credit drops to 60%, further reducing the financial return on solar for new customers.

Recent changes to the state’s net metering policies have left some solar customers unhappy. For instance, Michael in Jacksonville switched to Jacksonville Electric Authority’s SolarSmart program in 2021, “but due to the changes in the net-metering rates it didn't make financial sense,” he told us. It ended up costing more than expected due to unclear billing. We’ve heard similar concerns from FPL customers about confusing rate structures.

Should you get a solar battery?

A solar battery lets you store excess solar energy in your backyard instead of feeding it into the local power grid. It’s expensive ($7,000 to $18,000) but might be worth it in the long term if net metering rates continue to decline. A battery can also help protect you from power outages during hurricane season.

How much are solar panels in Florida?

After considering the federal solar tax credit, solar panel costs in Florida typically range from $7,648 to $15,296. Leasing is often cheaper upfront, but you won’t be eligible for the federal solar tax credit and other financial incentives.

On the high end, Norberto in St. Cloud paid $70,000 for his solar energy system. The size of your solar system is one of the biggest factors in determining total cost. A typical system in Florida is 14.4 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy usage.

Average solar cost by system size in Florida

Solar resources in Florida

Below are some additional online resources that exist to help Florida residents embrace renewable energy.

• Florida Solar Energy Center
• Solar United Neighbors Florida
• Florida Solar Energy Industries Association
• Florida Energy Systems Consortium

Find solar companies in Florida

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Florida’s top solar companies to learn more.

FAQ

Bottom line

Although there aren’t as many incentives as some other states, appealing tax breaks, low-interest loans and other initiatives make going solar worthwhile. The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly in Florida.

Solar costs vs. savings: Florida and nearby states