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Net Metering in Florida
Net metering is the mechanism that makes Florida rooftop solar economics work — and the fine print varies by utility. Here’s how the programs at Duke Energy Florida and Tampa Electric function, the annual true-up trap most homeowners miss, and why you should verify the current tariff yourself before signing anything.
How Florida net metering works (the mechanics)
When your panels produce more electricity than your home is using, the surplus flows out to the grid through a bi-directional meter. Your utility tracks that exported energy and credits it against the energy you import at other times. Over a month, you’re effectively billed for your net usage — hence the name. At the end of a 12-month cycle comes the true-up: any remaining excess credits are settled out, historically at the utility’s avoided cost (what it would have paid to generate that power itself) rather than the retail rate you pay.
The true-up trap: why oversizing wastes money
That annual settlement detail drives the single most important sizing rule in Florida solar: size to your usage, not beyond it. Excess kilowatt-hours you bank all year get cashed out at avoided cost — a fraction of retail. A system 30% bigger than you need doesn’t earn 30% more savings; it earns a small annual check and a much bigger upfront cost. Any proposal showing big “excess generation revenue” deserves a hard look at the settlement rate they assumed.
Duke Energy Florida vs. Tampa Electric — what differs
- Both offer net metering to residential solar customers under published tariffs — but the tariffs are separate documents with their own interconnection fees, minimum monthly bills, application processes, and timelines.
- Interconnection tiers. Small residential systems typically fall in the simplest, fastest interconnection tier; the utility still must approve the design and swap/install the bi-directional meter before you get permission to operate.
- Fees and minimum bills. Utilities can and do adjust customer charges, minimum bills, and interconnection fees — these line items, more than the credit rate, are where your economics quietly shift year to year.
- Municipal and co-op utilities differ. If you’re served by a municipal utility or electric co-op rather than Duke or TECO, their solar buyback terms may be entirely different — some offer net metering, some offer avoided- cost buyback only. This is the #1 reason generic national advice fails in Florida.
Incentives still on the table in Florida (2026)
- Federal 25D residential credit: gone. The 30% credit for purchased residential systems expired December 31, 2025. Systems completed in 2026 don’t qualify.
- Federal 48E commercial credit: active through 2027. Claimed by the system owner — relevant if you lease or sign a PPA (the company claims it), or for commercial systems.
- Florida property-tax exclusion. The added value of a solar system is excluded from property-tax assessments in Florida — your system shouldn’t raise your property tax bill.
- Florida sales-tax exemption. Solar energy equipment is exempt from Florida state sales tax.
- Utility rebates: check your specific utility — some Florida utilities and municipalities run periodic solar or battery rebate programs. They come and go; verify current availability.
Tax and incentive rules change — confirm with a tax professional and your utility before making decisions. This page is information, not tax advice.
Net metering and your system design
Because of the true-up economics, the right design process is: (1) pull 12 months of usage from your utility bill, (2) size the system to offset roughly 90–110% of that usage given your roof’s production potential, (3) price it at gross cost with no assumed federal residential credit, and (4) sanity-check the proposal’s payback math against your utility’s current tariff. A contractor who won’t show you this math is selling, not designing.
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Net metering FAQs
What is net metering in Florida?
Net metering lets your electric meter effectively run backward: when your solar panels produce more than your home uses, the excess flows to the grid and earns credits; when you need grid power (at night, on cloudy days), you draw against those credits. Florida's investor-owned utilities — including Duke Energy Florida and Tampa Electric — offer net-metering programs, typically reconciled monthly with an annual true-up. Exact credit rates and fees change, so verify the current terms with your own utility before sizing a system.
Do I get paid the retail rate for excess solar in Florida?
Historically, Florida net metering has credited excess generation at or near the retail rate on a monthly basis, with any remaining annual excess settled at the utility's avoided cost at the annual true-up — not the retail rate. That annual settlement detail is why oversizing a system is usually poor economics in Florida. But rate structures and settlement terms can change: confirm the current numbers in your utility's published net-metering tariff, not in a salesperson's pitch.
Did net metering change in Florida in 2026?
The big 2026 change was federal, not net metering: the 30% residential tax credit (Section 25D) expired December 31, 2025. Florida's net-metering framework itself remains in place, but utilities periodically propose changes to rates, minimum bills, and interconnection fees — and past legislative sessions have seen bills that would have altered net metering. Treat any 'net metering is ending' sales pitch as a pressure tactic and check your utility's current published terms.
Does net metering work with a solar lease or PPA?
Yes, but the credits flow differently. On a lease/PPA the solar company owns the system and typically receives the net-metering credits, then charges you a fixed rate or lease payment. Your bill goes down, but you don't control or directly receive the credits. On a purchased system, the credits are yours. Compare the two structures on total cost, not just the first-year bill.
Net-metering tariffs, credit rates, and fees change — verify current terms directly with your utility (Duke Energy Florida, Tampa Electric, FPL, or your municipal/co-op provider) before signing a contract. Incentive information is general guidance, not tax advice.