What solar incentives are available?

The average gross price of a whole home solar installation in Florida is $13,000. At that level of investment, you can expect a system with 13 panels that can generate 11,826 kilowatt-hours (kWh) of power. Your investment may be more or less depending on your goals. To help reduce the upfront cost, federal, state, and local incentives can bring the price you pay down by thousands of dollars. Your cost-saving options in the Sunshine State include the state net metering program, state property and sales tax exemptions, and the federal solar tax credit (available until 2035). Importantly, check with a financial advisor to ensure your eligibility for solar incentives.

Net metering

Net metering is a billing mechanism. If your solar system produces an extra kWh that your home does not consume at any given point, this electricity is sent to the grid and tracked by your smart meter.

On the other hand, Tampa Electric delivers electricity to your home when you need it, like on cloudy days or at night. The data from your smart meter is accounted for at the end of each billing period, and the kWh delivered to you minus the kWh your system sent to the grid is the “net” usage you will be charged for. If the net usage is a negative number, then you have kWh saved to use next month. If the net usage is a positive number, you are billed for that kWh. 

Under Florida net metering, you will only be billed for your net energy usage.

View a Tampa Electric net meter sample bill.

Tax exemptions

The state of Florida offers property and sales tax exemptions for solar purchases. 

• Florida’s Property Tax Exclusion for Residential Renewable Energy Property allows you to add a solar panel system to your home without experiencing any related increases to your property tax bill.
• The Solar and CHP Sales Tax Exemption provides a 6 percent tax savings on a new solar energy system.

Federal solar tax credit

The federal solar tax credit, also known as the investment tax credit (ITC), can reduce the cost of your home solar panel system by 30 percent. The ITC is structured to allow solar owners across the country to deduct a percentage of their solar system’s cost from their federal taxes. In Florida, this can bring the average price of solar down by almost $3,400. Like most solar incentives, the ITC won’t last forever. The following outlines the ITC structure and schedule as of 2023:

• 2022-2032: 30 percent
• 2033: 26 percent
• 2034: 22 percent
• 2035: the ITC ends for residential systems

Please be sure to speak with your financial advisor, and check the IRS website here: Home Energy Tax Credits | Internal Revenue Service (irs.gov). Learn more about Florida solar incentives. 

Standalone energy storage

Under the Inflation Reduction Act, residential storage systems, whether paired with solar or not, are also eligible for the 30 percent tax credit. Importantly, standalone storage systems must be over 3 kWh in size to qualify. 

Batteries are interconnected (but not net metered) with Tampa Electric. Connect your system here.

What to know about net metering

Net metering is a billing structure that enables solar owners to send excess energy produced by their solar panel systems back to the electric grid. This excess energy minus the energy delivered to you by Tampa Electric is the “net,” or difference. Solar panels generally produce more electricity in the sunny, summer months and less when there are fewer daylight hours. Accordingly, net metering allows solar owners to “bank” their excess solar production for later use when their home’s energy demands exceed their solar system’s production. Under net metering, solar owners can essentially use the grid to “store” their excess energy and, ultimately, boost the value of their solar investment. 

Tampa Electric bills with net metering

Under Florida net metering, you will only be billed for your net energy usage: the number of kWh delivered to you by Tampa Electric minus the number of kWh your system sent to the grid. Your bill will reflect the kWh Delivered minus the kWh Received. If the number is negative, this means you pushed more kWh to the grid than Tampa Electric delivered to you. There will be no kWh billed for that billing period, and the difference will be “banked” for use next month or when you need it. If the “net” is a positive number, you are billed for this kWh. 

Once your certified solar installation is interconnected to the grid, Tampa Electric ensures your meter and billing are set up to net meter. Your monthly statement will include a Total Used column with the following:

• kWh Delivered: the kilowatt-hours of electricity delivered to your home from the Tampa Electric grid.
• kWh Received: the kilowatt-hours of electricity Tampa Electric received from your solar panel system. 

Monitor your usage with an energy management system

Energy management systems provide insight into your home’s entire energy system. Understanding your home’s electrification allows you more control over your usage and, ultimately, what you pay for it.

Learn more about net metering and connect your solar system here.

Net metering is a billing function that compensates customers for any surplus power they feed back to the grid from their solar or other renewable energy system.

1. Solar Panels – Throughout the day, a solar power system transforms sunlight into electrical energy. An inverter converts this electrical energy from direct current (DC) to alternating current (AC) to ensure its safe and effective use in residential or commercial settings.
2. Electricity – Solar power is used in your home or business first, then excess electricity is sent to your battery storage (if applicable) or to the electric grid. When solar power is not available or is insufficient to meet your needs, some or all of the electricity you consume will be supplied by Tampa Electric.
3. Meter - A smart meter measures how much electricity you consume from Tampa Electric and how much you send to the grid. 
4. Net Metering - Your monthly bill is the “net” of what’s produced and what’s consumed. You will see credits for excess electricity sent to the grid and charges for the electricity flowing into your home from the grid. Each month, you are responsible for the “net” difference, plus a basic service charge that covers the cost of providing service to your location.

Electrify your home beyond solar

Most homes have historically relied on multiple energy sources, but electric-powered appliances are increasingly beneficial for household safety, the environment, and financial savings. Replacing gas-powered appliances with electric alternatives enhances energy efficiency, and enables the use of renewable energy produced by the grid or your own solar panel system. 

Upgrade to electric appliances

Implementing minor energy saving practices is a great way to start electrifying your home, but upgrading major appliances can significantly reduce your energy costs. 

• Appliances: Look for ENERGY STAR appliances powered by electricity to be more energy efficient.
• HVAC system: Heat pumps offer an efficient and electric way to heat and cool your home. And, you can earn a rebate through Tampa Electric's Heating and Cooling program when you install a new, energy-efficient system. 
• Water heater: You can power an electric water heater through the electric grid or with solar panels.
• Clothes dryer: If you have a gas-powered dryer, you can update to an electric model. 
• Car: Electric vehicles (EVs) can save you money on gas, and you can charge them right at home.
• Electrical panel: You may need to upgrade your electrical panel to support higher loads when electrifying your home.

Learn more about how to electrify your home.