Florida Solar Incentive Programs

Florida's net metering rule (FPSC Rule 25-6.065) requires investor-owned utilities to credit solar exports at the full retail electricity rate. When your solar panels produce more than you use in a billing period, the excess kWh reduces your next bill at the retail rate, typically $0.12 to $0.14/kWh for FPL customers, somewhat higher for Duke Energy Florida and TECO. At your annual true-up, any remaining year-end surplus is paid out at the COG-1 avoided cost rate (substantially lower than retail), so it is more economical to size your system to offset roughly 100% of annual usage rather than to deliberately overproduce. HB 741, a 2022 bill that would have replaced retail-rate NEM with avoided-cost-rate credits, was vetoed by Governor DeSantis, full retail net metering remains the law in Florida. Note: some municipal utilities and electric cooperatives have their own net metering rules separate from the FPSC tariff.

• Florida property served by an investor-owned utility (FPL, Duke Energy FL, TECO, Gulf Power)
• Grid-tied solar system of any size (residential up to 2 MW in practice)
• System must be interconnected per utility interconnection standards

Under Florida Statutes §212.08(7)(hh), solar energy equipment used to generate electricity is exempt from the 6% Florida state sales and use tax. On a $28,000 system, this saves $1,680. Florida's discretionary sales surtax applies to transactions subject to sales tax, so an exempt solar purchase generally carries no county surtax either. Verify with your installer the net effective tax on your purchase based on your county's surtax rate.

Florida Statutes §193.624 provides that, for residential property, the value a solar installation adds may not be considered in the property tax assessment, so 100% of it is excluded. On a $25,000 system assessed as adding $20,000 in property value, the full $20,000 is excluded. The exclusion is automatic. If your assessment reflects the solar system value, contact your county property appraiser and cite F.S. §193.624.

• Solar energy system installed on Florida residential real property
• System placed in service before December 31, 2037
• Any county (applies statewide)

PACE financing in Florida allows homeowners to finance solar (and other energy improvements) with no upfront cost. The financing is repaid through a special assessment added to your property tax bill over 10 to 25 years. Florida PACE programs operate under the Florida PACE Funding Agency and similar entities. Key considerations: PACE assessments are senior to mortgage liens; compare interest rates carefully; and ensure your mortgage servicer is notified (most do not require pre-approval in Florida, but it is good practice). PACE is most valuable when traditional financing is unavailable or undesirable.