Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate
Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
A typical 10 kW solar system in Florida costs about $21,500 installed in 2026 and saves roughly $1,900 in year one. In our model it pays for itself in about 10 to 12 years and delivers roughly $23,400 to $43,500 in 25-year net savings, depending on whether electric rates rise. These figures include no federal tax credit: the 30% homeowner credit (§25D) ended for systems installed after December 31, 2025. Florida’s sales-tax exemption, property-tax exemption and retail net metering for investor-owned utilities still apply.
Last updated October 4, 2026. All figures are modeled estimates, not quotes. Every input is listed below.
Florida’s advantage is sunshine, not cheap-to-beat electricity. The state averages roughly 5.3 to 5.6 peak sun hours a day (NREL-based estimates), but its average residential rate is about 15¢/kWh, below the 18.3¢ U.S. average (EIA, July 2026). Florida homes also use a lot of power for cooling: about 1,100 kWh a month on average, or a bill near $166. This guide shows the math. See our methodology page and the Florida solar data page.
💰 System Cost
How Much Do Solar Panels Cost in Florida in 2026?
A typical Florida home system of about 10 kW costs about $21,500 installed at the $2.15-per-watt price we model. No federal credit comes off that price for systems installed in 2026.
System size
Panels (400 W)
Installed cost at $2.15/W
Federal credit (2026 install)
8 kW
20
$17,200
$0
10 kW (modeled typical)
25
$21,500
$0
12 kW
30
$25,800
$0
Assumptions: $2.15/W is the midpoint of EnergySage’s Florida city averages for August–September 2026 ($2.04/W in Jacksonville, $2.05/W in Tampa, $2.08/W in Orlando, $2.24/W in Fort Lauderdale). The median Florida home system in Palmetto and LightReach installs from January 2024 to June 2026 was 10.6 kW, so we model 10 kW. Prices exclude batteries, roof work and main-panel upgrades.
Until December 31, 2025, homeowners could claim 30% of system cost under §25D, which would have cut a $21,500 system to $15,050. The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) ended the credit for later expenditures, so older Florida quotes that show a “net cost after tax credit” no longer apply to a 2026 purchase. See our federal solar tax credit guide for the timeline.
Data visualization
Installed cost by system size in Florida. A 10 kW system is about $21,500 at $2.15/W with no federal credit. Source: EnergySage Florida city data Aug-Sep 2026.
Chart summary: Cost scales linearly with size at $2.15 per watt: about $17,200 for 8 kW, $21,500 for 10 kW and $25,800 for 12 kW. Each extra 2 kW adds roughly $4,300. These figures exclude batteries, roof work and panel upgrades.
Florida exempts solar equipment from state sales tax under Florida Statute 212.08(7)(hh), so a correct quote should not add state sales tax to the system. Prices vary by region and installer, so get at least three quotes and compare them in dollars per watt. The solar system size calculator turns your annual kWh into a target size before you shop.
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📋 Key Insights
How Much Can Florida Homeowners Save With Solar?
A 10 kW system saves about $1,900 in year one. Over 25 years, net savings are about $43,500 if rates rise 3% a year and about $23,400 if rates stay flat. Your results scale with your bill.
Worked example (modeled, not a real customer):
Input / result
Value
System size
10 kW
Annual production (NREL PVWatts-based Florida average)
~1,462 kWh per kW, or ~14,620 kWh
Electricity rate (EIA, July 2026 Florida residential average)
15¢/kWh
Share of production that offsets retail-priced usage (our assumption)
0.87
Year-1 savings (14,620 × $0.15 × 0.87)
~$1,908
Installed cost
$21,500
Panel degradation
0.5% per year
Break-even year, rates +3%/yr
~10.1 years
Break-even year, flat rates
~11.6 years
25-year net savings, rates +3%/yr
~$43,500
25-year net savings, flat rates
~$23,400
The 0.87 factor is our assumption for fixed monthly charges and unbanked surplus; your utility’s tariff will differ. The 3% rate growth is a planning scenario, not a forecast. Rates can rise slower or fall.
Data visualization
25-year cumulative cash flow, 10 kW Florida system. Starts at -$21,500 and ends near +$43,500 with 3% yearly rate growth or +$23,400 with flat rates. Source: EIA 2026 rate, NREL PVWatts yield, EnergySage 2026 price.
Chart summary: The system starts at a $21,500 deficit. With electric rates rising 3% a year, cumulative cash flow turns positive after about 10 years and reaches roughly +$43,500 at year 25. With flat rates, break-even comes at about 11.6 years and the 25-year total is roughly +$23,400. The gap between the lines shows how much of the long-term return depends on future utility rates.
By monthly bill (rates +3%/yr, same Florida assumptions):
Monthly bill
System size
Installed cost
Year-1 savings
Break-even
25-yr net savings
$100
5.5 kW
~$11,800
~$1,040
~10 yrs
~$23,800
$150
8.2 kW
~$17,600
~$1,570
~10 yrs
~$35,700
$200
10.9 kW
~$23,500
~$2,090
~10 yrs
~$47,700
$300
16.4 kW
~$35,300
~$3,130
~10 yrs
~$71,500
Assumptions: system sized to offset the annual bill at 15¢/kWh and 1,462 kWh per kW; year-1 savings = bill × 12 × 0.87; $2.15/W; 3% annual rate growth; 0.5% annual degradation; no federal credit. A 16 kW system may not fit many roofs.
Break-even stays near 10 years at every bill size because cost and savings both scale with system size. What moves it is your price per watt, roof orientation, shading and utility rules. The solar savings calculator uses your own bill and ZIP code.
How installed price changes payback (10 kW system):
Price per watt
Installed cost
Break-even, rates +3%/yr
Break-even, flat rates
$2.00
$20,000
~9.4 yrs
~10.7 yrs
$2.15
$21,500
~10.1 yrs
~11.6 yrs
$2.50
$25,000
~11.5 yrs
~13.5 yrs
$3.00
$30,000
~13.4 yrs
~16.3 yrs
Data visualization
Payback years by installed price, 10 kW system. Break-even moves from 9.4 years at $2.00/W to 16.3 years at $3.00/W with flat rates. Source: EIA 2026 rate, NREL PVWatts yield, EnergySage 2026 price.
Chart summary: Every extra $0.50 per watt adds roughly 1.5 to 2.5 years to payback. At $2.00 per watt, break-even is under 11 years in both rate scenarios. At $3.00 per watt it stretches to between about 13 and 16 years. Collecting several quotes is the single most effective way to shorten payback.
🏛️ Incentives
What Solar Incentives Are Left in Florida in 2026?
For a system you own and install in 2026, the incentives left in Florida are state tax exemptions and retail net metering at the investor-owned utilities. The federal homeowner credit is gone.
Incentive
Status for a 2026 install
Notes
Federal §25D credit (30%)
Ended
Systems installed by Dec 31, 2025 are claimed on the 2025 return; unused credit can carry forward
Florida sales-tax exemption
Available
Solar equipment is exempt from state sales tax (Fla. Stat. 212.08(7)(hh))
Florida property-tax exemption
Available
Added assessed value from a renewable energy device is excluded (Fla. Stat. 193.624)
Net metering (investor-owned utilities)
Available
Retail-rate bill credits; year-end surplus paid at a lower avoided-cost rate
Sources: IRS guidance on §25D; Florida Statutes 212.08 and 193.624; Florida PSC Rule 25-6.065; DSIRE. This is not tax advice; confirm your situation with a tax professional.
Who can still claim a federal credit? A Florida homeowner whose system was installed in 2025 claims 30% on the 2025 return, filed in 2026. Anyone with unused §25D credit from an earlier year can carry it forward. Businesses that own solar may still use the §48E credit if the project began construction by July 4, 2026 (that window has now passed) or is placed in service by December 31, 2027. Tax-exempt organizations can use elective (“direct”) pay for §48E under the same rules.
Net metering: Florida’s investor-owned utilities (FPL, Duke Energy Florida and Tampa Electric) follow PSC Rule 25-6.065. Exported kWh offset your usage at the retail rate and unused credits roll forward monthly. Remaining credits are paid out once a year at a lower avoided-cost rate. FPL also expects your estimated annual production to stay within 115% of your annual consumption, so oversizing adds little value. Municipal utilities and electric co-ops publish their own export credits, and some pay materially less than retail. Net metering rules are set by regulators and can change, so confirm your tariff in writing.
💳 Financing
Should Floridians Pay Cash, Take a Loan, Lease, or Sign a PPA?
Paying cash gives the lowest lifetime cost, with break-even in about 10 to 12 years in our model. A loan spreads the cost but adds interest. A lease or PPA avoids the upfront cost, and it is the one route where a federal credit (§48E, claimed by the installer) may still reduce the price in 2026.
Cash. You pay about $21,500 for a typical system, own it outright and keep all the bill savings, modeled at about $23,400 to $43,500 net over 25 years.
Solar loan. Monthly payments replace part of your electric bill. Interest lengthens your payback, and many “low-APR” solar loans build a dealer fee into the system price. Ask for the cash price and the financed price side by side. The solar loan calculator shows total interest and net savings.
Lease or PPA. A third party owns the panels and you pay a monthly fee or a price per kWh. Because the owner is a business, it may claim the §48E credit for systems placed in service by the end of 2027 and pass some of that value to you. There is no guaranteed discount. Compare the first-year price per kWh with your roughly 15¢ utility rate, check the annual escalator, and read the transfer terms if you might sell the house. The lease vs. buy calculator models both paths.
Before 2026, a common argument for buying over leasing was that owners kept the 30% credit. That argument no longer applies. In 2026 the comparison is your installed cost against the total you would pay under a lease or PPA.
🔋 Storage & EV
Is Battery Storage Worth Adding to a Florida Solar System?
In Florida, a battery mainly buys backup power for hurricane-season outages, not bill savings. A 13.5 kWh-class battery typically costs about $13,000 to $16,500 installed, and homeowner-owned batteries installed in 2026 get no federal credit.
Florida’s large utilities credit exports at the retail rate, so storing midday solar for the evening saves little compared with exporting it and drawing it back later. Batteries pay off in bill savings mainly where exports earn much less than retail, as in California or Hawaii.
A battery can still be the right choice if your household has sat through repeated multi-day outages, depends on powered medical equipment, or wants to avoid running a generator. Price it as insurance. Ask whether your inverter is battery-ready and which circuits a single battery can back up. The battery storage calculator helps size one.
Sources and Method
Electricity prices: U.S. Energy Information Administration, Electric Power Monthly (Florida residential about 15.0¢/kWh and U.S. about 18.3¢/kWh, July 2026).
State rules: Florida Statutes 212.08(7)(hh) and 193.624; Florida PSC Rule 25-6.065; DSIRE.
Battery prices: published 2026 installer and marketplace ranges for 13.5 kWh batteries (about $13,000 to $16,500); individual quotes vary.
Model limits: assumptions for the 0.87 offset factor, 3% rate growth and 0.5% annual degradation are ours. Full model details are on our methodology page.
Related calculators
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No, not for a system you own. The 30% Residential Clean Energy Credit (§25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act (Public Law 119-21). If your system was installed in 2025, you claim the credit on your 2025 return (IRS Form 5695). Leases and PPAs work differently: the installer owns the system and may use the commercial §48E credit if the system is placed in service by the end of 2027, then reflect some of that value in your price. Confirm your situation with a tax professional.
About $2.15 per watt in our model, or roughly $21,500 for a 10 kW system. EnergySage's Florida city pages (Aug–Sep 2026) show averages between $2.04 and $2.24 per watt, so an 8 kW system is about $17,200 and a 12 kW system about $25,800 at the same price. No federal credit is subtracted. Florida exempts solar equipment from state sales tax. Roof work, battery storage and electrical panel upgrades cost extra, so compare at least three quotes in dollars per watt.
For most homeowners with an unshaded roof who plan to stay 10+ years, yes. In our model a 10 kW system costs about $21,500 and saves roughly $1,900 in year one. It breaks even in about 10 years if electric rates rise 3% a year, or about 11.6 years if rates stay flat. Florida's 15¢/kWh residential rate is below the 18.3¢ U.S. average (EIA, July 2026), so payback depends more on your installed price and roof than on electricity prices.
Yes. Under Florida PSC Rule 25-6.065, investor-owned utilities (FPL, Duke Energy Florida and Tampa Electric) credit exported solar kWh against your usage at the retail rate, and unused credits roll over month to month. Leftover credits are paid out once a year at a lower avoided-cost rate (at FPL, after the December meter read). FPL also expects estimated annual production to stay within 115% of your annual consumption. Municipal utilities and co-ops set their own terms, and rules can change, so confirm your tariff in writing before signing.
Mostly as hurricane-season backup, not for bill savings. A 13.5 kWh battery typically costs about $13,000–$16,500 installed, and homeowner-owned batteries installed in 2026 get no federal credit. Because the big Florida utilities credit exports at the retail rate, storing midday solar saves little compared with exporting it. A battery makes sense if you face repeated multi-day outages or rely on powered medical equipment. Ask which circuits one battery can back up.
$166/month electric bill by state
System size and payback vary by electricity rate and sun hours — see your state.
15.3¢/kWh — Florida average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
5.7 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
Full retail net metering — solar assumed to offset 87% of the bill. Florida's investor-owned utilities offer retail-rate net metering with excess credits paid out annually at avoided cost.
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.