Installing solar panels can be an expensive endeavor. However, if you have the money to put up to do it, they will pay off over time. With the Green movement sweeping across the states, there are many added incentives for installing solar panels, whether for personal use or your business. That’s when the discussion about Federal Solar Tax Credits shows up.
As of 2026, Florida Power and Light no longer offers a per-watt cash rebate program. Instead, FPL customers benefit from net metering, which credits excess solar energy at the full retail rate of approximately $0.137/kWh as of 2026. In addition to the savings you will receive on your power bill, these federal solar tax credits, rebates, and loans will help to lower your overall cost and subsidize your upfront cost as well.
Rebates
Most utility companies will offer rebates for the amount of power that your solar system produces, measured in Watts. On your power bill, you will see that you are charged based on the number of kilowatt-hours that you consume. When you install a solar system, its purpose isn’t to directly power your utilities as some may think. The power is fed back into the electrical grid, and you will receive a deduction on your monthly bill based on the amount of power that you feed back into the grid.
With Florida Power and Light, for example, you can qualify for $2.00 per watt to be awarded back to you for having a residential unit installed. Commercial owners can qualify for anywhere from $1.00 to $2.00 for their DC wattage (DC stands for Direct Current as opposed to Alternating Current). You need to apply for annual rebates that will be awarded on a first come first serve basis. For residential customers, they offer up to $20,000, and commercial customers up to $50,000. This is just one utility company, and these numbers will vary depending on the utility company in your area.
Duke Energy Florida, which acquired Progress Energy, currently offers no solar-specific cash rebates. Like FPL, their primary solar benefit for customers is net metering at full retail rates.
Certain geographical areas also have incentives and added perks for installing solar systems. If you are lucky enough to be in one of these cities, you can receive hundreds to thousands of dollars for your installation costs.
Financing
Be wary of any loans that are offered because in most cases you will end up paying more than you need to or is not worthwhile because of the interest you will pay for it. The interest alone will wipe out any savings that you are seeking by installing a solar system. Look for government grants and federal rebates before looking into loans to get you started. For example, if you were to take out a 10-year loan at a 5% fixed interest rate on a system costing upwards of $20,000, you would be paying over $8,000 more than if you were to find a way to buy it upfront.
Note: As of January 1, 2026, the federal residential solar tax credit (Section 25D) has expired for homeowners who purchase systems outright, following the passage of the One Big Beautiful Bill in July 2025. Homeowners using solar leases or PPAs may still access savings indirectly through the commercial 48E credit, which runs through the end of 2027.
Tax Exemption
Florida residents are also exempt from sales tax on solar installations. It is important to do your homework and investigate all rebates and savings that are offered so that you don’t pay more than you have to for your system. Between federal tax savings and state tax savings, you could be missing out on a lot of money coming back to you. Investigate the utility companies in your area to see what type of savings they offer on a per-wattage basis. If you cover all of these areas, you will set yourself up nicely to see a return on your investment.
FAQ
Not if you’re buying the system outright. The residential solar tax credit expired for customer-owned systems on January 1, 2026. The only remaining federal pathway for homeowners is through leases or PPAs, where the installer claims the credit and may pass savings to you.
No state income tax credit exists, but Florida offers two valuable exemptions: a permanent 6% sales tax waiver on solar equipment and a 100% property tax abatement through 2037.
Net metering credits you at the retail electricity rate for the excess power your panels send to the grid. All investor-owned utilities in Florida, FPL, Duke Energy, TECO, and Florida Public Utilities, are required by state law to offer it. Municipal utilities like OUC may have different terms, so always check directly with your provider.
Based on what we’ve seen in the data, yes, particularly given Florida’s strong net metering policy, zero sales tax on equipment, and property tax protection. On average, Florida homeowners with solar panels avoid $67,130 in utility costs over 25 years, with a typical payback period of around 8.78 years.
Yes. Look into PACE financing (repaid through your property tax bill) and the Solar and Energy Loan Fund (SELF), which offers loans up to $50,000 at rates starting at 5%.
Battery storage systems, including lithium-ion, are covered under Florida’s property tax abatement through 2037, so adding storage won’t raise your property tax bill. Federal credits for homeowner-owned batteries expired alongside the residential solar ITC at the end of 2025.
