If you started researching solar a couple of years ago and are just now getting back to it, the math has changed more than the panels have. The number most people still have in their head, a 30% federal tax credit, no longer applies to a system you buy or finance yourself in 2026.
Short version: The federal 30% residential solar tax credit expired December 31, 2025, and doesn’t apply to systems purchased with cash or a loan in 2026 or later. Florida’s own incentives, a 100% property tax exemption on the added home value, a sales tax exemption on the equipment, and full retail-rate net metering, are unaffected and still active. Whether solar makes sense now depends much more on your specific numbers than it used to, worth running before you sign anything.
What actually happened to the federal credit
For nearly two decades, homeowners who bought a solar system could claim 30% of the cost back as a federal tax credit, no cap, straight off what you owed the IRS. That credit, Section 25D of the tax code, was repealed early by the One Big Beautiful Bill Act, signed July 2025. It didn’t step down gradually the way past changes did, it ended outright for any system placed in service after December 31, 2025. If your system was installed and operating by the end of 2025, you can still claim it on that year’s return. If you’re buying with cash or a loan in 2026, the federal credit is $0.
There’s one real exception worth knowing: if you go the lease or power purchase agreement (PPA) route instead of buying, the financing company that owns the system on your roof is a business, and businesses can still claim a similar 30% credit (Section 48E) through 2027. That savings doesn’t come to you directly, it shows up as a lower lease payment or per-kWh rate, if the provider is actually passing it through. Worth asking any lease or PPA provider directly whether they’re claiming that credit and having them show the number in writing, rather than taking a “still get 30% off” pitch at face value.
What Florida still offers on its own
None of Florida’s own incentives were touched by the federal change, and with the federal credit gone, they matter proportionally more than they used to:
Property tax exemption. Under Florida Statute 193.624, 100% of the value solar adds to your home is excluded from property tax assessment, permanently, through at least 2037. Your home’s market value can go up because of the system without your tax bill following it up.
Sales tax exemption. Solar equipment is exempt from Florida’s 6% state sales tax under Florida Statute 212.08(7)(hh), applied automatically at the point of sale, no application needed.
Net metering. This depends entirely on who your actual electric provider is, and it’s not as uniform as it used to be. FPL, Duke Energy Florida, and TECO, the state’s investor-owned utilities, are required by Florida Public Service Commission rule to credit solar customers at the full retail rate for excess power sent back to the grid. Municipal utilities aren’t bound by that same rule and set their own terms, and two of Central Florida’s largest have already moved away from it: Kissimmee’s KUA ended net metering entirely in 2023, and Orlando’s OUC scaled it back significantly for new solar customers starting in 2025, with existing customers grandfathered at the old rate for 20 years. Confirm which utility actually serves the address before running solar payback numbers, not just which of the “big three” utilities you assume covers the area. See electric providers in Central Florida for the full comparison.
Can your HOA say no?
No. This one’s already covered in detail in what Florida HOAs can and can’t control, but the short version: state law specifically protects a homeowner’s right to install solar, an HOA can regulate placement and appearance within reason, but can’t ban it outright.
Permits and hurricane-code engineering
A rooftop system in Florida needs both a building permit and a separate electrical permit, and the building permit is where wind matters. The Florida Building Code requires rooftop solar mounting to be engineered for wind loads under the ASCE 7 standard, meaning your installer’s attachment points, spacing, and hardware have to be calculated for your specific location’s wind speed, not just installed to a generic national default. Miami-Dade and Broward counties, Florida’s High-Velocity Hurricane Zone, layer on stricter product-approval requirements, that doesn’t apply to Central Florida, but the underlying wind-engineering requirement does, statewide. If an installer’s quote doesn’t mention engineered drawings or a permit timeline, ask.
One more hurricane-specific consideration
A grid-tied solar system needs to shut itself off automatically the moment the grid loses power, a required safety feature called anti-islanding, covered in more detail in hurricane preparedness in Florida. This is also why a home with solar panels still loses power during an outage just like everyone else, unless the system includes battery storage and a proper transfer switch. A reputable installer will have this built in and code-compliant by default, worth confirming directly if you’re evaluating a quote or inheriting an existing system with a home purchase.
So is it actually worth it in 2026?
This is the part that’s genuinely different from two years ago, and it’s also the part that’s specific to your house, not a percentage that applies to everyone. Your real answer depends on what a system actually costs you, what your current bill looks like, and how long you’re staying in the home, exactly the inputs a sales deck tends to gloss over in favor of a big first-year savings number.
Rather than take a quote’s projected savings at face value, run it through a solar payback calculator using your own system cost and expected monthly savings, it’ll show your actual break-even point and what the system saves over 25 years, not just year one.
Choosing an installer
Getting quotes from more than one installer is worth the time, prices and proposed system sizing vary more than people expect. For a deeper, Central Florida-specific walkthrough, E-Z Solar publishes independent guides on installer red flags, realistic cost ranges, and incentives, unaffiliated with any solar company, aimed specifically at homeowners in this area rather than generic national advice.
Frequently Asked Questions
Yes, for systems you purchase with cash or a loan. The 30% residential credit (Section 25D) expired for any system placed in service after December 31, 2025. Leased or PPA systems can still indirectly benefit through a separate business credit.
No. Florida Statute 193.624 exempts 100% of the value solar adds to your home from property tax assessment, so your home’s market value can rise without your tax bill rising because of it.
No, Florida law protects a homeowner’s right to install solar. An HOA can set reasonable placement and appearance conditions, but it cannot ban solar installation outright.
Yes. The Florida Building Code requires rooftop solar mounting to be engineered for wind loads under the ASCE 7 standard, calculated for your specific location, statewide, not just in South Florida’s High-Velocity Hurricane Zone.
It depends on your specific utility. Investor-owned utilities like FPL, Duke Energy Florida, and TECO are still required by state rule to offer full retail-rate net metering. Municipal utilities set their own terms, and Orlando’s OUC and Kissimmee’s KUA have both scaled back or ended it in recent years.
No, not for new customers. KUA ended net metering entirely in 2023. OUC scaled it back for new solar customers starting in 2025, though existing customers were grandfathered at the old rate for 20 years.
Sources:
https://www.potreroenergy.com/learn/federal-solar-tax-credit-2026
https://floridarenewableenergy.com/florida-solar-incentives-rebates-2026/
https://www.floridarenewableenergy.com/florida-net-metering-guide/