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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)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Florida does not offer a state tax credit for solar installations.

SREC Market

Not Available

Florida 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

Reduced Net Metering (SB 1024) Reduced Net Metering (SB 1024)

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

$2.00/W $3.50/W $5.00/W

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

Peak Sun Hours5.8 hrs/day
Production1630 kWh/kW/yr
Annual Production$11,411 kWh
Annual Savings$1,196

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