Florida Solar Tax Credit: What Homeowners Need to Know in 2026

The federal 30% residential solar tax credit (the "ITC") sunset on December 31, 2025. That's the big change you're hearing about. But Florida homeowners going solar in 2026 still have several real incentives worth knowing about — and they're enough to make the math work in most cases.

Here's a clear breakdown of what's available, what's gone, and what to expect when filing.

What's gone in 2026

• Federal Residential Clean Energy Credit (the 30% ITC) — ended December 31, 2025 for residential systems placed in service in 2026 or later.

If a salesperson tells you that you can still claim 30% off your federal taxes for a residential system installed this year, that's not accurate. Verify with your CPA before signing anything.

What's still available to Florida homeowners in 2026

1. Florida sales tax exemption on solar equipment

Florida exempts qualifying solar energy equipment from the state's 6% sales tax. On a $25,000 system, that's roughly $1,500 saved at the point of purchase. You don't have to file anything — your installer applies it to the invoice automatically.

2. Florida property tax exemption

Adding solar increases your home's market value (roughly $15,000–$20,000 in resale value, per multiple Florida appraisal studies). Normally, that would push your property tax bill up. Florida law specifically prevents that — the added value from solar is excluded from your property tax assessment.

You get the equity gain, you skip the tax penalty.

3. Net metering credits with your utility

Net metering isn't a tax credit, but it's the single biggest ongoing savings mechanism for Florida solar. When your panels produce more electricity than your home is using, the excess flows back to the grid and you receive credits on your utility bill. At night, on cloudy days, or during heavy AC use, those credits offset what you draw.

Net metering programs vary by utility:

• FPL (Florida Power & Light) — 1:1 retail-rate credits for systems under 10 kW; rolling monthly credits.
• Duke Energy Florida — 1:1 credits at retail rate, with annual true-up.
• TECO (Tampa Electric) — 1:1 retail-rate credits for residential systems under 10 kW.
• Most municipal utilities (Lakeland Electric, OUC, etc.) — typically 1:1 but check your specific program.

Your installer should handle the full interconnection and net metering enrollment paperwork as part of the project.

Will the federal credit come back?

There are active conversations in Congress about restoring some form of the residential clean-energy credit, but nothing is guaranteed. We'd encourage homeowners to make their decision based on today's incentives, not on what might happen in a future session.

So is solar still worth it in Florida without the federal credit?

For most Florida homeowners, yes — and here's why:

1. Florida has some of the highest electric rates in the Southeast, and they keep rising.
2. Florida has more sun than almost any other state in the U.S.
3. The state-level incentives above (sales tax + property tax exemptions + net metering) are still in place.
4. $0-down financing options mean you don't pay for the system upfront — your monthly solar payment replaces (and is often lower than) your current utility bill.

The math is tighter without the 30% federal credit, but for the average Florida home with a $200+ monthly electric bill, solar still pays off — usually within 8–11 years, with a 25-year production guarantee.

What to do next

1. Pull your last 12 months of electric bills to know your actual usage.
2. Ask your installer to model the system based on your real numbers, not a generic ZIP-code estimate.
3. Confirm in writing which incentives are being applied and which are not.
4. Always verify with a CPA before counting any tax incentive in your decision.

Want a clear, no-pressure breakdown of what your numbers look like in 2026? Get a free quote from Flo Energy — we'll show you the math with and without each incentive so you can make the call with full information.