Guide
Florida net metering: what a banked kilowatt-hour is really worth
Updated
Florida kept net metering, which is genuinely good news. The catch comes at year end, and it is why an oversized Florida system disappoints.
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How this calculator works
- The federal residential clean energy credit (Internal Revenue Code Section 25D) is not applied. Per the IRS page, it "equals 30% of the costs of new, qualified clean energy property" installed "anytime from 2022 through December 31, 2025".
- It also states "the credit is not available for any property placed in service after December 31, 2025" (irs.gov). The page was last reviewed July 4, 2026; we read it again on our updated date. Confirm your position with a tax professional before letting any 2026 quote net 30% off.
- The default electricity rate of 15.17 cents per kWh is the Florida residential average for May 2026. It was 14.97 cents in May 2025 (EIA, Electric Power Monthly, Table 5.6.A). It is an input: use the figure from your own bill.
- Sizing assumes roughly 1,400 kWh per kW per year for an unshaded south-facing Florida roof. It is scaled by 0.85 for an east or west roof and 0.7 for a shaded or north-facing one.
- These are working estimates, not figures from an official source we can cite today. Treat the suggested size as a starting point, and ask your installer for modeled production for your address.
- Price per watt is your input. The $2.80 default is a typical 2026 Florida quote. It moves with roof type and pitch, tile versus shingle, panel and inverter tier, needed roof work, and the permitting jurisdiction. We publish no Florida market average: no official source we can cite publishes one.
- The sales tax line applies Florida's 6% general state sales tax rate (Florida Department of Revenue) to the system price. Florida exempts "solar energy systems or any component thereof" from sales tax (s. 212.08(7)(hh), F.S.).
- Many counties add a discretionary sales surtax, which is exempt too. So the figure shown is a floor, not the whole saving.
- For residential property, "the just value of the property attributable to a renewable energy source device may not be considered" in determining assessed value.
- Photovoltaic modules and inverters are named as renewable energy source devices (s. 193.624, F.S.). Adding solar should not raise your Florida property tax assessment.
- Nothing here estimates savings. Florida does run net metering for customer-owned renewable generation. But a banked credit's year-end value is not the retail rate: see how Florida net metering works.
Where the rule comes from
Section 366.91, Florida Statutes, defines net metering as "a metering and billing methodology whereby customer-owned renewable generation is allowed to offset the customer's electricity consumption on site".
Each public utility must "develop a standardized interconnection agreement and net metering program for customer-owned renewable generation". The Public Service Commission establishes the requirements (flsenate.gov).
Municipal utilities and rural electric cooperatives have the same duty under subsection (6), through their own governing bodies rather than the commission.
The commission's implementing rule is Rule 25-6.065, Florida Administrative Code, "Interconnection and Metering of Customer-Owned Renewable Generation" (flrules.org). Ask your own utility for its current tariff sheets rather than relying on a summary, including ours.
How it works month to month, and at year end
Florida Power and Light describes the mechanism for its customers. When your system produces more than you use, "the excess amounts are applied to the customer's next month's electric bill".
Then, "if you have unused kilowatt hours (kWh) in your bank when your meter is read in December, a credit will be applied to your December bill". FPL refers customers to its COG-1 rate for the detail (fpl.com).
That is the whole shape of it. Through the year, exported kilowatt-hours offset imported ones roughly one for one, which is the valuable part.
At the December read, whatever is still banked is settled at the utility's cost of generation rate, not carried on at retail value. Utilities buy at avoided cost; you buy at retail. The two are not the same number.
What that means when you size a system
- Size to your annual usage, not above it. Kilowatt-hours generated beyond what you consume in a year get settled at the utility's rate, not yours. That is the single most common way a Florida system underperforms its sales pitch.
- Seasonality is your friend here. Florida's summer air conditioning load lands in the same months as peak production, so more of your generation offsets consumption directly rather than banking.
- A pool pump, an electric water heater or an EV can absorb surplus that would otherwise bank at low value. Shifting those loads into daylight hours costs nothing.
- Check the tier your system falls into. The commission's rule sets different application requirements by system size, and utilities apply fees and insurance requirements to larger tiers. Residential rooftop systems normally sit in the smallest tier.
What to ask your utility before you sign
- "Send me the current net metering tariff sheets and the interconnection agreement I would sign."
- "What rate applies to unused banked kilowatt-hours at the annual settlement, and when is my settlement month?"
- "Are there any monthly charges specific to net metering customers on my rate schedule?"
- "How long does interconnection approval take, and can I switch the system on before it is approved?" The answer to the last part is normally no.
Municipal utilities and electric cooperatives run their own programs under section 366.91(6), and the terms differ from the investor-owned utilities. If you are served by one, ask them directly. Nothing here estimates your savings.