Is Solar Worth It in Florida in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Florida homeowners — without the federal ITC.
Cost Per Watt
$2.80
installed
Electricity Rate
$0.131
per kWh
Payback (No ITC)
16.4 yr
current reality
Payback (With 30% ITC)
11.5 yr
hypothetical
25-Year ROI
53%
return on investment
Incentive Breakdown — Florida
Available incentives for a typical 7kW residential solar system in Florida
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneFlorida does not offer a state tax credit for solar installations.
SREC Market
Not AvailableFlorida does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Key Incentives: Property tax exemption for solar; Sales tax exemption on solar equipment.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Florida
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC
- $0
- Net Cost
- $19,600
- Annual Savings
- $1,196/yr
- Payback Period
- 16.4 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC (30%)
- -$5,880
- Net Cost
- $13,720
- Annual Savings
- $1,196/yr
- Payback Period
- 11.5 years
Impact: Without the federal ITC, Florida homeowners face a 4.9-year longer payback period — paying $5,880 more out of pocket.
Net Metering Policy — Florida
How Florida compensates your excess solar production
Florida SB 1024 reduces net metering compensation to 50% of retail (2025-2027), ~$0.069/kWh for new systems. Pre-2024 systems grandfathered at full retail. Steps down to avoided cost only in 2028+.
Cost Per Watt Benchmark — Florida
Florida Average
$2.80/W
National Average
$3.05/W
Typical 7kW System
$19,600
Florida's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Florida breaks even in 16.4 years under SB 1024 reduced net metering (~50% of retail for exports). With the former 30% ITC, payback would drop to 11.5 years.
Without Federal ITC
16.4
years to break even
With Former 30% ITC
11.5
years to break even
Production Details
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