Florida Solar Incentive Programs

June 25, 2025

Florida has, on average, anywhere between 230 and 250 sunny days per year, so it’s no surprise that it’s also home to a booming solar industry. While Florida has more than 20 GW of installed solar capacity, only roughly 9% of the state’s energy comes from solar, and only 4.5% of homes in Florida sport solar energy systems.

Florida’s electric rates are, on average, less than the US national average and have one of the lowest average annual percent changes in the country. Still, solar remains a low-cost energy option and a necessary form of resilience in the face of natural disasters.

At the local level, there aren’t a ton of Florida solar incentives available to homeowners, but tax incentives and full retail net metering from investor-owned utilities mean solar has a strong value proposition for homeowners.

Let’s take a look at some of the solar incentive programs for Florida residents. A list of incentives is available at https://programs.dsireusa.org/system/program/fl

Federal Solar Incentives

Federal Investment Tax Credit (ITC)

Residential solar systems installed in Florida are eligible for the Federal ITC, which provides up to 30% credit toward the total cost of a solar system. The Inflation Reduction Act (IRA) of 2022 extended the 30% credit through 2032. Starting in 2033, the ITC rate will decrease to 26%, followed by a further reduction to 22% in 2034.

The credit is non-refundable, meaning it cannot exceed the amount you owe in tax and would not directly increase any refund you would receive. Excess credit can be carried forward and used in future years.

The IRA also included standalone or retrofitted energy storage projects, so batteries added to the system’s quality for the 30% tax credit.

Recently, the US House of Representatives passed their version of the “One Big Beautiful Bill” Act, which includes repeals of sections 25D and 48E solar tax credits. The US Senate’s version, that is yet to be passed, would end the tax credit six months after the bill passes, so this credit may not be around for long. Learn more about the impact of this credit going away here.

Modified Accelerated Cost Recovery System (MACRS)

IRS section 179 depreciation allows certain qualified properties to be classified as 5-year properties, and tax credits are taken on the depreciation. This credit applies to commercial sites and certain investment properties. Specific information on what qualifies can be found on the IRS website.

State Solar Incentives & Programs

Sales Tax Exemption

Solar equipment is exempt from Florida’s 6% sales tax and has been since July of 1997. The exemption was originally set to expire in 2002 but was extended for three more years before becoming permanent in 2005. If a residential solar system were to cost a homeowner $30,000, homeowners in Florida save $1,800 on sales taxes thanks to this exemption.

Property Tax Abatement for Renewable Energy

Property tax exemptions are another great Florida solar incentive. Under this provision, residential single-family and multi-family properties receive a 100% property tax exemption. Non-residential renewable energy projects can receive an 80% tax abatement. Recent studies have shown solar panels to increase a home’s value between 5%-10%. Zillow reports the average single-family Florida home value to be $386,556, so homeowners in Florida could expect adding solar to increase their home’s value by $19,000 – $39,000.

Thanks to this provision, homeowners won’t have their property taxes increased due to increases in home value they will see from the addition of solar panels and related equipment.

Boynton Beach Energy Edge Rebate Program

The city of Boynton Beach, located on the state’s east coast just north of Miami, offers a rebate program for homeowners installing solar PV equipment and various other energy-efficiency improvements. For solar installations, homeowners can receive a one-time $1,500 rebate. To qualify, systems must be 5 kW or larger, use panels above 17.5% efficiency, and be installed by a certified solar contractor.

Boynton Beach’s program also offers rebates of various amounts for other energy efficiency additions, such as water heaters, electric vehicle chargers, doors and windows, insulation, and HVAC upgrades.

Dunedin Solar Energy Rebate Grant Program

Dunedin, located on the state’s west coast, offers a rebate program for solar homeowners at a rate of $0.25 per watt of solar installed, up to $2,500. Payments for differing system sizes would look like this:

5 kW = $1,250
8 kW = $2,000
10 kW = $2,500

The rebate program is on a first-come, first-served basis, and the total funds available are determined yearly.

Loan Programs

An interesting solar incentive program that many cities and electric utilities in Florida offer is energy efficiency loans. If you’re a resident of one of these towns or take electric service from one of the utilities, you may be able to get a low-to-no interest loan for energy-efficient appliances or solar energy additions to your home.

Some towns and counties also offer PACE Financing, which stands for Property Assessed Clean Energy. With PACE financing, homeowners can get loans that are attached to their property rather than to them as individuals. The property owner then pays for their solar system or energy efficiency upgrade through increased property taxes. PACE financing can offer little to no upfront costs and make going solar affordable and accessible.

The following areas and utilities offer loan programs for solar equipment:

Net Metering

Net metering is a solar incentive program seen across the country in various forms. The basic principle of net metering is that when solar systems generate more electricity than a home can use or store, the excess electricity can be sent back to the electric grid. Once power goes back out to the grid, the electric utility for that area gives the homeowner a credit for power that is sent back. Some utilities offer a full retail rate where homeowners get a dollar-for-dollar credit, and others offer little to no credit for anything sent back.

The Florida Public Service Commission (PSC) established rules for solar net metering back in 2008. Under their rules, investor-owned utilities in the state must offer homeowners full retail rate net metering. This means homeowners who send electricity back to the grid get credit for the same amount they would pay for the energy. The rule only applies to the public utilities, though, so local electric utilities and cooperatives don’t have to follow these guidelines.

Roughly 75% of Florida’s residents are served by an investor-owned utility, so this great net metering benefit is available to the majority of Florida homeowners looking to go solar.

The Future of Florida Solar

While there aren’t many local programs to reduce the upfront cost to homeowners, the amount of sunshine combined with solid net metering and strong loan availability means that the solar industry in Florida will continue to thrive. We also expect battery storage to continue to skyrocket in Florida as resilience concerns over natural disasters continue to climb.

If you’re a homeowner in Florida looking to go solar, be sure to seek out a Solar Insure Certified Provider who can offer you an SI-30 warranty. With an independent SI-330 warranty attached to your system, homeowners get 30 years of equipment and labor cost coverage to ensure they aren’t hit with financial surprises down the road.

If you’re a Florida solar homeowner whose installer unfortunately went out of business, you can still receive long-term coverage with SolarDetect. SolarDetect by Solar Insure is a monitoring and maintenance plan for homeowners without reliable solar maintenance providers. Learn more about SolarDetect at https://www.solarinsure.com/solar-insure-monitoring-and-warranty-service

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