⚠️ 2026 Tax Credit Update: The 30% federal residential solar Investment Tax Credit (ITC) expired December 31, 2025 for homeowners purchasing solar with cash or a loan. References to this credit in the article below reflect pre-2026 figures. The credit no longer applies to new purchased installations in 2026 — see our Federal Solar Tax Credit 2026 guide for what changed and what still qualifies.
Florida gets more sun than almost any other state, but when it comes to solar incentives, it’s more complicated than you might expect. There’s no state income tax credit — so forget about stacking a Florida credit on top of the federal one. What the state does offer is actually more valuable long-term: exemptions that protect your property value and cut upfront costs for decades.
Here’s every incentive a Florida homeowner can tap in 2026, what it’s actually worth, and how to make sure you’re claiming everything you’re entitled to.
What Happened to the Federal Solar Tax Credit
The federal Investment Tax Credit (ITC) was the biggest solar incentive available to homeowners through 2025 — it gave buyers 30% of their total installation cost back as a credit against federal income taxes. On a $25,000 Florida system, that was $7,500 off your tax bill.
That credit expired December 31, 2025 for homeowners who purchase solar with cash or a loan. There is no federal income tax credit for new purchased residential solar installations in Florida in 2026. Form 5695 is not relevant for 2026 purchases.
If you lease or sign a PPA: The solar company owning the system can still claim the commercial 48E credit through 2027 and often passes those savings along through lower monthly rates. See our full breakdown: What Happened to the Federal Solar Tax Credit in 2026.
Florida’s Property Tax Exemption — No Extra Taxes on Added Value
In most states, installing solar raises your property’s assessed value, which raises your annual property taxes. Florida specifically exempts solar from this. Under the state’s renewable energy property tax exemption, the added value from a solar system doesn’t count toward your taxable assessed value.
On a $30,000 system in a county with a 1.2% property tax rate, that’s roughly $360 per year you’re not paying in extra taxes — or about $7,200 over 20 years. The exemption runs through 2037 under current law, and there’s no reason to expect it won’t be renewed given Florida’s pro-solar politics.
Florida’s Sales Tax Exemption — Equipment Purchases Are Tax-Free
Florida exempts solar equipment from the state’s 6% sales tax. Panels, inverters, batteries, racking, and wiring all qualify. On a $25,000 equipment purchase, that’s roughly $1,500 you don’t pay. Your installer should apply this automatically at point of sale — if they’re quoting you sales tax on solar hardware, ask them to fix it before you sign.
Net Metering in Florida — What You’ll Actually Earn
Florida utilities are required to offer net metering, and the rules are relatively favorable compared to many states. When your panels produce more electricity than you use, the excess flows back to the grid and credits your account at the full retail rate — not a lower wholesale rate.
If you’re on Florida Power & Light, Duke Energy Florida, or Tampa Electric, you’ll see bill credits accumulate in summer when your panels overproduce. Those credits offset what you draw during cloudier months. Most Florida solar homeowners end up paying just the $20–$40/month minimum service charge year-round.
One watch-out: Florida utilities have lobbied to reduce net metering compensation, and rate structures can change. The current full-retail credit structure is stable for 2026, but locking in before any future changes means your rate is protected under grandfather clauses for existing systems.
Why Florida Has No State Income Tax Credit
This is the one gap in Florida’s incentive stack that catches people off guard. Georgia has a state program. North Carolina has a 35% state credit. Florida has neither. The reason isn’t political opposition to solar — it’s structural: Florida has no state income tax, so there’s no mechanism to deliver an income-based credit.
Some utilities offer small rebates from time to time. FPL has run on-bill financing programs. Duke Energy Florida has offered pilot rebates for efficiency upgrades. These are modest — typically $500–$1,000 — and availability changes frequently. Check directly with your utility before installation to see what’s currently active.
How the Incentives Stack for a Typical Florida System
Here’s what a realistic incentive picture looks like for a 10kW system installed in 2026 at $28,000 total cost:
Federal ITC (30%): -$8,400 off your tax bill. Sales tax exemption: ~$1,500 saved at purchase. Property tax exemption over 20 years: ~$7,200 saved. Avoided utility bills over 20 years (at $140/month average before solar): ~$33,600. That puts total estimated savings over 20 years well above $50,000 on a $28,000 investment — a payback period of 6–8 years depending on your rate and sun exposure.
How to Claim the Florida Incentives
The federal ITC is claimed on IRS Form 5695 when you file your annual return. Your installer will typically provide a document showing the total eligible system cost. The property tax exemption is automatic in Florida — your county property appraiser is required to apply it. The sales tax exemption should be applied by your installer at invoice. You don’t need to file anything separately for either state benefit.
Bottom Line
Florida’s incentive stack isn’t as flashy as North Carolina’s, but the combination of the 30% federal ITC, property tax exemption, and sales tax exemption makes the numbers work — especially given the state’s exceptional sun exposure. If you’re waiting for a better incentive before going solar, you’re waiting for something that probably won’t arrive. The federal 30% credit starts stepping down after 2032, and there’s no indication Florida will add a state credit in the near term.
Compare Solar Quotes in Florida
Florida homeowners pay some of the lowest solar installation prices in the country, thanks to high competition and no sales tax on solar equipment. The best way to know exactly what you’ll pay—and which incentives you actually qualify for—is to compare quotes from multiple installers.
- EnergySage — compare competing quotes from vetted Florida solar installers online
- DSIRE Florida — official database of every FL solar incentive, rebate, and policy
- Best Solar Companies in Florida — our vetted installer recommendations