Homestead Energy Services Solar: Credit, What You Save

Solar creditAvoided cost on true excessPaid out yearly and if you close your account

Average rate11.4 cents per kWhFederal EIA average, one of the lower rates we cover

A $300 bill needs16 to 20 kWCovers roughly 75 to 95 percent of a year's use

Good to knowLeftovers are paidYearly true-up and account-closure payout, both guaranteed

The short answer

Homestead Energy Services (HES), the City of Homestead's utility, uses your solar generation to offset your own use first. Only true excess, power beyond what you use, gets credited, and it's paid at HES's average wholesale avoided cost rate rather than the retail rate you pay.

At about 11.4 cents per kWh, one of the lower rates we cover, a $300 monthly bill needs roughly 16 to 20 kW of solar to cover most of your use, and a $400 bill needs roughly 21 to 27 kW. Homestead serves the City of Homestead in Miami-Dade County.

How Homestead's solar credit works

Homestead's net metering program was created by Ordinance No. 2012-04-06, effective April 2012.
Electric energy from your system first serves your own load and offsets your usage. Any kWh beyond that, delivered to HES's grid, is "excess customer-owned renewable generation."
Each billing cycle, that excess is credited to your bill at HES's average wholesale avoided cost rate, a rate well below retail.
If a cycle's credit is larger than your bill, the difference carries forward for up to twelve months. In the last billing cycle of the calendar year, HES pays out any unused credit at its average wholesale avoided cost rate or average generation cost for the year.
If you close your account, HES pays any unused credit by check within 180 days.
Net metering is first-offered, first-accepted, and capped once participating customers' total deliveries reach 2.5 percent of HES's aggregate customer peak demand.

What a monthly Homestead bill needs

The sizes below use 11.4 cents per kWh and cover roughly 75 to 95 percent of a year's use. Savings and the bill left over use the PSC's December 2025 figures for Homestead, including its $12.60 monthly customer charge.

Monthly bill	System size	Savings a year	Bill left each month
$200 a month	10.3 to 13.0 kW	$1,690 to $2,140	$22 to $59
$300 a month	15.7 to 19.9 kW	$2,590 to $3,280	$27 to $84
$400 a month	21.2 to 26.9 kW	$3,490 to $4,420	$32 to $109
$500 a month	26.6 to 33.8 kW	$4,390 to $5,560	$37 to $134

These are planning numbers, not a quote, before taxes and local fees. Homestead pays avoided cost only on true excess, power left over after your own use, so a system that stays under a year of your use keeps close to these figures.

How to connect solar to Homestead

Choose a licensed contractor and pick the tier that matches your system size: Tier 1 (15 kW or less), Tier 2 (over 15 kW to 100 kW) or Tier 3 (over 100 kW to 2 MW).
Submit the Application for Interconnection with the applicable fee: none for Tier 1, $400 for Tier 2, or $1,000 plus a $2,000 study deposit for Tier 3.
Provide documentation that your system meets IEEE 1547, IEEE 1547.1 and UL 1741 standards, proof of liability insurance for your tier, local code inspection approval, and a completed W-9 form.
HES executes the interconnection agreement within 30 calendar days of a complete application. Give HES at least 10 business days' notice before you plan to go live.
Once HES confirms your manual disconnect switch works and all paperwork is in, it sends written notice within 15 business days that you may begin parallel operation.

Which utility do I have?

Your bill names your utility. Homestead Energy Services serves the City of Homestead in Miami-Dade County, and nearby unincorporated areas may be served by FPL instead, so read our FPL guide if that is you. Compare every utility we cover at solar by utility.

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Common questions

How much solar do I need with Homestead Energy Services?

At about 11.4 cents per kWh, one of the lower rates we cover, a $300 monthly bill needs roughly 16 to 20 kW of solar and a $400 bill needs roughly 21 to 27 kW.

Is solar worth it with Homestead Energy Services?

It depends on how much of your solar power you use at home. Your generation offsets your own use first at the retail rate, but true excess is credited at HES's average wholesale avoided cost rate, well below retail. Compare our estimate, which is a top end at Homestead, with each quote. The federal tax credit ended on December 31, 2025.

How does Homestead credit solar power sent to the grid?

Homestead Energy Services' net metering tariff, effective under Ordinance No. 2012-04-06, first uses your solar generation to offset your own electric use. Only generation beyond your own use, called excess customer-owned renewable generation, is credited on your bill, at HES's average wholesale avoided cost rate for that billing cycle.

What happens to unused Homestead solar credits?

If a billing cycle's credit is larger than your bill, the difference carries forward and accumulates for up to twelve months. In the last billing cycle of each calendar year, HES pays out any unused credit at its average wholesale avoided cost rate or average generation cost for the year.

What if I close my Homestead account with unused solar credits?

HES pays you for any unused excess energy credits by check, mailed to your last known or forwarding address, within 180 days of closing the account.

How big a solar system can I install with Homestead Energy Services?

Homestead uses a three-tier system: Tier 1 for 15 kW or less, Tier 2 for over 15 kW up to 100 kW, and Tier 3 for over 100 kW up to 2 MW.

What does it cost to apply for solar at Homestead?

Tier 1 systems have no application fee. Tier 2 systems pay a non-refundable $400 fee. Tier 3 systems pay $1,000 plus a $2,000 deposit toward an interconnection study, refunded if the actual cost is lower.

What insurance does Homestead require for solar?

Tier 1 requires at least $100,000 in general liability insurance. Tier 2 requires $1,000,000, and Tier 3 requires $2,000,000, both naming the City of Homestead as an additional insured.

How do I connect solar to Homestead Energy Services?

Submit the application for your tier along with proof your system meets IEEE 1547, IEEE 1547.1 and UL 1741 standards, plus local code inspection approval and a completed W-9 form. HES executes the interconnection agreement within 30 calendar days of a complete application, and gives 15 business days' notice once you can begin parallel operation.

Is there a limit on how much solar Homestead will connect?

Yes. Net metering is first-offered, first-accepted, and HES can reduce or reject new interconnections once the total electricity delivered by all participating customers exceeds 2.5 percent of the aggregate customer peak demand on its system.

Sources: Homestead Energy Services' Net Metering Service Rate Schedule, effective August 2025 (PDF) · Florida PSC comparative rate statistics, December 31, 2025 (PDF) · U.S. EIA Form 861 utility data, 2024 and 2025 early release

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