Learning Center/Costs & Incentives/8 min read

Florida Solar Incentives Explained

Solar incentives can significantly reduce the overall cost of a solar energy system, but understanding which programs apply to your home can be confusing. This guide explains today's major incentives in plain English so you can make informed decisions.

Why solar incentives exist

Incentives are designed to encourage investment in renewable energy, reduce reliance on traditional power generation, and support long-term energy resilience. Understanding them is less about politics and more about knowing what’s available to you as a homeowner.

What changed with the federal tax credit

This is the single most important update for Florida homeowners researching solar right now. According to the IRS, the Residential Clean Energy Credit equaled 30% of the cost of qualifying clean energy property installed from 2022 through December 31, 2025, and the credit is not available for any property placed in service after December 31, 2025.1

In plain English: if you are shopping for solar today, you should not assume a 30% federal credit will reduce your tax bill, and you should be cautious about any proposal, savings projection, or financing offer that still builds one in. Verify the current federal treatment on the IRS page above and with a qualified tax professional before relying on any number.

If you already installed and placed a qualifying system in service in an eligible year, the IRS states the credit is nonrefundable and that any excess unused credit can be carried forward to reduce tax owed in future years.1 How that applies to your return depends on your individual tax situation.

Florida’s sales tax exemption

Under Florida law, solar energy systems — or any component of one — are exempt from Florida sales tax, with the Florida Solar Energy Center certifying the list of qualifying equipment and hardware.2 Because the exemption is applied at the point of sale, it reduces the purchase cost without requiring you to file additional paperwork.

Florida’s property tax exemption

Many homeowners worry: “If solar increases my home’s value, will my property taxes go up?”

Florida law addresses this directly. In determining the assessed value of real property used for residential purposes, the just value attributable to a qualifying renewable energy source device may not be considered. The statute applies to qualifying devices installed on or after January 1, 2013 on new and existing residential real property.3 The statute defines which equipment qualifies, so your specific installation and county assessment should be confirmed with the official source.

Utility programs

Some Florida utilities offer additional programs or policies that interact with residential solar. Offerings vary by provider and can change over time. The Florida Public Service Commission publishes consumer information on customer-owned renewable generation and can help you identify your utility.4

Rather than trying to list every possible program, SolarFit™ takes your utility into account when generating personalized guidance.

Why incentives shouldn’t be the only reason to go solar

The best reason to consider solar isn’t because incentives exist. It’s because solar makes sense for your home. This is especially true now that the federal credit is no longer available for property placed in service after December 31, 20251 — the underlying fit of the system to your home and usage matters more than ever.

Common myths

What people get wrong

Myth
Solar incentives are "free money."
Reality
Most incentives have eligibility requirements and specific rules. Understanding how they work is important before making financial decisions.
Myth
Incentives stay the same, so there's no rush to check.
Reality
Incentives change. The IRS states the federal Residential Clean Energy Credit is not available for property placed in service after December 31, 2025, while Florida's sales and property tax provisions are set in state statute. Always verify current rules with the official source before making financial decisions.
Myth
Florida doesn't offer any solar incentives.
Reality
Florida statutes provide a sales tax exemption for solar energy systems and components, and limit how the value of a qualifying residential renewable energy source device is considered in property assessments.
Myth
The tax credit works like an instant rebate.
Reality
Tax credits generally reduce eligible federal income tax liability rather than lowering the purchase price at the time of installation.
SolarFit™ connection

One of the biggest questions homeowners ask is: “Which incentives actually apply to me?”

The answer depends on your location, your utility provider, your home’s characteristics, and your project details. SolarFit™ personalizes that guidance, making it easier to understand which opportunities may be relevant to your situation.

Keep reading

Related guides

Wondering which incentives may apply to your home?

Take the free SolarFit™ Assessment to receive personalized guidance based on your home's location, utility provider, and energy goals.

Closing thought

Incentives can make solar more affordable, but they shouldn’t make the decision for you. The best investment is one that fits your home, your budget, and your long-term plans.

Sources

The authoritative sources used for the factual claims on this page. Rules, rates, and programs change — always confirm details with the official source before you make a decision.

  1. 1.Internal Revenue ServiceResidential Clean Energy CreditCredit availability, the December 31, 2025 cutoff, and carryforward rules.
  2. 2.Florida LegislatureFlorida Statutes § 212.08(7)(hh) — Solar energy systems exemptionSales tax exemption for solar energy systems and components.
  3. 3.Florida LegislatureFlorida Statutes § 193.624 — Assessment of renewable energy source devicesProperty tax treatment of qualifying residential renewable energy source devices.
  4. 4.Florida Public Service CommissionCustomer-Owned Renewable Generation
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