Solar in Florida: the 2026 numbers
A household here spending $200 a month on electricity needs roughly a 10.3 kW array, which generates about 15,893 kWh in its first year. Bought outright, it returns its cost in year 12 and is worth $8,187 over 25 years — after discounting, after upkeep, and with no federal credit.
Our answer for Florida: cash purchase
Of the four options, a cash purchase has the highest net present value at $8,187 , turning cash-positive in year 12 . Solar stops making sense in Florida above roughly $3.79/W installed — if a quote comes in above that, the answer flips.
What Florida gives you to work with
| Sunlight (specific yield) | 1543 kWh per installed kW per year — NREL PVWatts v8, Orlando |
| Average residential rate | $0.151/kWh — EIA, June 2026 |
| Export credit | 100% of retail — Full retail net metering for investor-owned utilities. |
| Federal credit on a purchase | None — §25D expired after December 31, 2025 |
| State incentives | Checked, and there is no cash incentive — reviewed 2026-08-14 |
The four options, run side by side
A household spending $200 a month on electricity, with the array sized to cover its usage, at the default $3.00/W installed cost. This is the same case the calculator below opens on. Net present value discounts future dollars at 5%, so these are not the inflated “lifetime savings” totals a sales quote shows.
| Option | Net present value | Payback | Cost per kWh |
|---|---|---|---|
| Cash purchase You pay for it. No fee, no interest, no escalator. | $8,187 | Year 12 | $0.165 |
| Solar loan Includes the 20% dealer fee that a low-APR solar loan hides in the financed price. | -$3,872 | Year 24 | $0.221 |
| Lease You rent the system. The owner keeps the §48E credit. | $92 | Year 1 | $0.203 |
| PPA You buy the output per kWh, not the hardware. | $734 | Year 1 | $0.200 |
A cash purchase delivers electricity at $0.165/kWh while the utility charges $0.151. Generating your own is more expensive than buying it here, which is the core problem.
Best option: Cash purchase — $8,187 net present value over 25 years, paying back in year 12.
| Option | Owns it | 30% credit | Upfront | 25-yr NPV | Payback | Cost/kWh |
|---|---|---|---|---|---|---|
| Cash purchase | You | None | $30,900 | $8,187 | Year 12 | $0.165 |
| Solar loan | You | None | $0 | -$3,872 | Year 24 | $0.221 |
| Lease | Provider | Indirect (§48E) | $0 | $92 | Year 1 | $0.203 |
| PPA | Provider | Indirect (§48E) | $0 | $734 | Year 1 | $0.200 |
What this calculation assumes, and where it can be wrong
Federal credit. The 30% federal residential credit (IRC §25D) expired for systems placed in service after December 31, 2025. A 2026 cash or loan purchase receives no federal credit. Leases and PPAs remain eligible indirectly: the third-party owner claims the commercial credit (IRC §48E) and reflects part of it in the price offered, provided the system is placed in service by December 31, 2027.
Estimated §48E value in a lease or PPA quote: about $4,635 for this system, assuming the provider passes through half the credit. That share is our estimate, not a published figure.
Export credit. Full retail net metering for investor-owned utilities.
State incentives. Florida has no state income tax, so a state tax credit cannot exist. Sales tax and property tax exemptions apply but are not cash incentives. Some municipal utilities run local rebates. Florida's case for solar rests on full retail net metering at investor-owned utilities plus high air-conditioning load, not on incentives.
- Cash purchase: No federal tax credit is applied: IRC §25D expired for systems placed in service after 2025-12-31.
- Solar loan: Financed amount includes a 20% dealer fee, which is why a $0-down loan quote costs more than the same system bought outright.
- Solar loan: No federal tax credit is applied: IRC §25D expired for systems placed in service after 2025-12-31.
- Lease: Pricing assumes the system owner claims the §48E credit and reflects part of it in your quote. The system must be placed in service by 2027-12-31 to qualify.
- PPA: Pricing assumes the system owner claims the §48E credit and reflects part of it in your quote. The system must be placed in service by 2027-12-31 to qualify.
Sunlight data: 1543 kWh per installed kW per year (verified — NREL PVWatts v8). Retail rate: $0.151/kWh.
Why Florida lands where it does
Across the 50 states we model, Florida ranks #21 on the value of a cash purchase, at $8,187 — behind Minnesota at $8,256 and ahead ofVirginia at $8,154 . The ordering is not the one people expect, and the reason is worth stating plainly: sunshine matters less than the price of the electricity you stop buying.
Florida gets 1543 kWh per installed kW per year and pays $0.151 per kWh. That is a lot of sun and cheap power — the combination that flatters brochures and disappoints spreadsheets. Every kWh the array makes displaces only $0.151 of bill, so the hardware has to be very cheap before the arithmetic works.
Full retail export, and what it hides
Florida credits exports at the full retail rate — Full retail net metering for investor-owned utilities. That is the friendliest possible treatment, and it is why the numbers above are as strong as they are. It also means a battery buys you almost nothing financially here: if the grid already pays you retail for every exported kWh, storing that kWh to use later saves the same amount it would have earned. The value of storage in a full net-metering state is close to zero, and we say so on the battery calculator rather than selling you one.
The risk to watch is not the arithmetic but the rule. Full retail net metering is the concession utilities lobby hardest against, and California's move to NEM 3.0 cut export value to a quarter of retail. A 25-year model that assumes today's export rule survives all 25 years is making a policy bet, not just a financial one.
What the state actually pays you
Florida has no state income tax, so a state tax credit cannot exist. Sales tax and property tax exemptions apply but are not cash incentives. Some municipal utilities run local rebates. Florida's case for solar rests on full retail net metering at investor-owned utilities plus high air-conditioning load, not on incentives.
So there is no cash incentive to model. That matters more than it used to: while the 30% federal credit existed, a state with no programme of its own was still fine. Now, Florida buyers are on their own entirely, and the whole case has to come from the bill savings.
The financing trap
A solar loan is worth -$3,872 here against $8,187 for the same system bought outright — a gap of $12,058. The interest rate is not what causes that. A 20% dealer fee is embedded in the financed price, which is how a "1.99% APR" offer ends up costing more than a bank loan at 8%. It is rarely on the quote. Ask for it by name.
Lease and PPA look different from a purchase for a structural reason: the third-party owner still claims the 30% §48E credit, which a homeowner buying outright can no longer get. How much of that credit reaches you in the price is a negotiation, and we assume half. The owner also carries the upkeep and the inverter replacement that a buyer pays for. That is why they still trail a cash purchase here, though by much less than they would have in 2025. Both are tied to systems placed in service by December 31, 2027 — see the 2027 deadline.
Your utility, not the state average
Everything above runs on Florida's statewide average of $0.151/kWh. No household pays that. In Florida the 26 largest utilities charged between $0.109 and $0.180 per kWh in 2024 — a spread wide enough to move payback by years. Each page below also shows how many of that utility's own customers already have solar.
- Florida Power & Light Co — $0.137/kWh, 20.7 solar homes per 1,000
- Duke Energy Florida, LLC — $0.166/kWh, 52.4 solar homes per 1,000
- Tampa Electric Co — $0.147/kWh, 38.1 solar homes per 1,000
- JEA — $0.124/kWh, 13.3 solar homes per 1,000
- Orlando Utilities Comm — $0.152/kWh, 42.4 solar homes per 1,000
- Lee County Electric Coop, Inc - (FL) — $0.135/kWh, 40.7 solar homes per 1,000
- Withlacoochee River Elec Coop — $0.124/kWh, 22.7 solar homes per 1,000
- Sumter Electric Coop, Inc — $0.131/kWh, 27.1 solar homes per 1,000
- Clay Electric Cooperative, Inc - (FL) — $0.131/kWh, 18.9 solar homes per 1,000
- City of Lakeland - (FL) — $0.114/kWh, 16.2 solar homes per 1,000
Before you accept a Florida quote
- Confirm it does not apply the expired 30% federal credit.
- Ask what export rate it assumed. Florida credits exports at 100% of retail; if the quote valued every kWh at $0.151, its savings figure is defensible on today’s rules.
- Check the price per watt. Above about $3.79/W the purchase stops paying for itself in Florida.
- Ask for the dealer fee on any financed offer, as a dollar amount.
- If it is a lease or PPA, ask for a placed-in-service commitment — §48E requires the system running by December 31, 2027.
More: the 2026 credit change, when solar is not worth it, our assumptions and sources.
Written and maintained by guarledes . Last reviewed 2026-08-15.