Is Solar Worth It in Central Florida?

Costs, Payback, and Net Metering in 2026

Central Florida gets plenty of sun, but sunshine alone doesn’t decide whether rooftop solar pays off. In 2026 the math depends mainly on three things: what the system costs now that the federal tax credit is gone, which utility serves the home and how it credits exported power, and how long the owner plans to stay.

Short version: The 30% federal residential solar credit doesn’t apply to systems placed in service after December 31, 2025, so payback estimates that include it are out of date. For a cash purchase on FPL or Duke Energy Florida, a typical 10 kW system priced around $2.20 to $2.90 per watt pays for itself in roughly 11 to 15 years, depending on price and future rate increases. Loans stretch that out. Orlando Utilities Commission (OUC) customers who connected on or after July 1, 2025 get less credit for power sent to the grid, which pushes payback longer. Florida still exempts solar equipment from sales tax and excludes it from property tax assessments, and HOAs can’t ban panels. Solar makes the most sense for owners who plan to stay well past the payback point, have a sound roof and little shade, and use most of what they produce.

What changed in 2026: no federal tax credit

For years, the residential clean energy credit covered 30% of the cost of a home solar system, and most payback estimates assumed it. The IRS now states that the credit isn’t available for any property placed in service after December 31, 2025. A $25,000 system that would have cost $17,500 after the credit now costs the full $25,000, which adds several years to the payback period.

Be careful with older articles, installer spreadsheets, and online calculators that still subtract 30%. Ask any installer to show the numbers with no federal credit included.

How net metering works with each Central Florida utility

Net metering decides what the power a system sends to the grid is worth, and it varies by utility.

FPL and Duke Energy Florida follow the Florida Public Service Commission’s net metering rule for investor-owned utilities. When panels produce more than the home uses in a month, the extra kilowatt-hours are banked and used against later bills at full retail value. Once a year, any unused credits are paid out at the utility’s much lower avoided-cost rate. In practice, this means:

• Sizing a system to cover roughly the home’s annual use works well.
• Oversizing it to “sell” power back doesn’t.
• FPL also charges every customer, including solar customers, a $30 minimum base bill, so solar can’t take a bill to zero.

OUC (Orlando and St. Cloud), a municipal utility, set its own rules:

• Grandfathered customers: Those with a completed, paid application by June 30, 2025 keep full retail credit for exports through June 30, 2045. The status stays with the premise and doesn’t transfer if the home is sold.
• Newer customers: Those connected on or after July 1, 2025 had a temporary grace period at retail value that ended in fall 2026. After that, exports are credited at OUC’s community solar rate through June 30, 2030, then at the retail fuel rate.
• No more solar bank: Starting November 1, 2026, OUC credits exports in the month they’re produced, as a dollar credit rather than banked kilowatt-hours.

For new OUC customers, every kilowatt-hour used at home is worth much more than one exported. Daytime use, smart timing of pool pumps and AC, or a battery improve the economics.

Other Central Florida providers, such as Kissimmee Utility Authority, Lakeland Electric, and the electric cooperatives, set their own net metering terms. Check the specific utility’s current tariff before signing. For the utility map, see Florida electric providers and net metering.

The payback math

Simple payback is the system’s cost divided by what it saves each year. The inputs for a typical Central Florida home are below.

• Price: Recent Central Florida quotes run roughly $2.20 to $2.90 per watt before any incentives.
• Production: A well-placed, unshaded rooftop in the Orlando area produces roughly 1,490 kWh per year for each kilowatt of panels, based on NREL PVWatts-type estimates. East- or west-facing roofs and shade reduce that.
• Value per kWh: Solar offsets the per-kWh part of the bill, not the fixed customer charge. With the Public Service Commission’s August 2026 figures putting a typical 1,000 kWh residential bill at $136.64 for FPL and $150.40 for Duke Energy Florida, roughly $0.13 per kWh is a reasonable working value.

A 10 kW system at those numbers produces about 14,900 kWh a year, worth roughly $1,937 in the first year.

Several things push payback longer:

• Financing, since interest adds to the total cost.
• A roof that needs replacing partway through the system’s life, which means removing and reinstalling the panels.
• Replacing a string inverter, often needed once during a panel’s lifetime.
• Exporting a large share of production on OUC’s newer terms. E-Z Solar’s analysis puts that case in the high teens. See its walk-through of whether solar is worth it in Central Florida.

Rising electric rates shorten it. FPL’s approved four-year rate agreement raises its typical bill in 2026, and fuel costs swing with natural gas prices.

Florida incentives that still apply

• No sales tax on solar equipment. Solar energy systems and their components are exempt from Florida sales and use tax under section 212.08(7)(hh). That includes panels, inverters and power conditioning equipment, and storage units.
• No added property tax. Under section 193.624, the value a residential renewable energy device adds to a home can’t be counted in its assessment. Panels don’t raise the tax bill. See homestead exemption and property tax rates by county.
• HOAs can’t ban panels. Section 163.04 bars deed restrictions and associations from prohibiting solar collectors. An HOA can choose where on the roof they go only within an arc facing south or up to 45 degrees east or west of south, and only if its choice doesn’t impair the system’s performance. See Florida HOA rules.

When solar usually doesn’t pay

Solar is a long-term purchase. These situations usually make the numbers weak:

• Moving before payback. Studies of resale premiums for owned solar are mixed, so plan on recovering the cost through bill savings, not the sale price.
• An aging roof. Panels are typically warrantied for about 25 years, and many shingle roofs in Florida don’t last that long. Replace a roof with about ten years or less left before installing. See Florida roof lifespan and replacement.
• Heavy shade or a small bill. Oak canopies and low usage both shrink the savings.
• Leases and liens. Leased systems and PACE financing liens can complicate a sale and a buyer’s mortgage approval. Read the transfer terms before signing.
• Expecting backup power. Standard grid-tied systems shut off during an outage so they don’t backfeed the lines. Running through a blackout requires a battery with backup capability, often $10,000 or more, or a generator. See home backup generators in Florida.

E-Z Solar’s guide to when to skip solar in Central Florida goes through each of these in more detail.

Insurance and hurricanes

Properly installed panels are rated for high winds, and many came through recent hurricanes without major damage. The financial risk is usually in the policy, not the storm. Before installing:

• Tell the insurer about the system.
• Confirm the panels are covered as part of the dwelling and whether coverage limits need to rise.
• Check the hurricane deductible. At 2% to 5% of dwelling coverage, damage to an array alone may fall entirely on the homeowner.

Some carriers also look harder at roof age once panels are on it. See the Florida homeowners insurance guide.

How to judge a quote

• Get at least three quotes and compare them by price per watt (total cost divided by system size in watts).
• Compare the production estimate with the home’s last 12 months of usage. A system sized well beyond annual use mostly earns avoided-cost credits or OUC’s lower export rate.
• Make sure the savings estimate uses the home’s actual utility, current rates, and no federal credit, and states its assumed rate increase. Annual rate increases much above recent history make payback look faster than it is.
• Ask who handles permitting, interconnection, and warranty service, and what happens if the installer goes out of business. See Florida building permits and regulations.
• For financed systems, compare the monthly loan payment with the expected monthly savings, not just the total.

For background on how panels, inverters, and batteries work and how to choose equipment, see solar panels in Florida. Homeowners planning an electric vehicle should factor in that added load. See home EV chargers in Florida.

Sources

• IRS, Residential Clean Energy Credit
• Florida Power & Light, Net Metering FAQ
• Orlando Utilities Commission, Net Metering Solar PV Program
• Florida Administrative Code, Rule 25-6.065 (Interconnection and Metering of Customer-Owned Renewable Generation)
• Florida Public Service Commission, Investor-Owned Electric Utilities Total Bill Comparison (August 2026)
• NextEra Energy, Florida Regulators Approve FPL Rate Agreement (November 20, 2025)
• Florida Department of Revenue, TIP 19A01-09: Solar Energy Systems Exemption
• Florida Statutes, Section 193.624 (Renewable energy source devices; assessment)
• Florida Statutes, Section 163.04 (Energy devices based on renewable resources)
• E-Z Solar, Is Solar Worth It in Central Florida?
• E-Z Solar, When to Skip Solar

This article is for general informational purposes only and isn’t financial, legal, insurance, or tax advice – for guidance specific to your situation, talk to a licensed professional.