The short answer
For a home solar system installed in 2026, there is no federal tax credit and no Florida tax credit. The 30% federal credit ended for systems whose installation was completed after December 31, 2025. Florida has no state income tax, so it never had a state solar credit to begin with.
What Florida homeowners still get are two tax exemptions: the value solar adds to your home isn't counted for property tax, and qualifying solar equipment is exempt from sales tax. A few cities and city-owned utilities also pay cash rebates, for batteries or for solar itself. And at the largest utilities, net metering still credits the power you send to the grid at the full retail rate.
What happened to the 30% federal solar tax credit
The residential clean energy credit, section 25D of the tax code, paid back 30% of what you spent on solar panels, and on battery storage too. The One Big Beautiful Bill Act, signed July 4, 2025, ended it: the credit isn't allowed for any expense made after December 31, 2025.
The timing rule is what trips people up. The IRS treats the expense as made when installation is completed, not when you sign or pay. So a system where you paid a deposit in 2025 but the installer finished in January 2026 doesn't qualify. The IRS says this directly in its guidance on the new law.
- Finished in 2025? You claim it on your 2025 federal return with IRS Form 5695. If you already filed without it, ask a tax professional about amending.
- Unused credit from an earlier year? If your credit was bigger than your tax bill, the unused part generally carries forward to later years. The credit ending for new systems doesn't erase credit you already earned.
- A solar lease? The leasing company owns the equipment, and a separate business credit for companies that own solar equipment (section 48E) runs a little longer: a project has to have begun construction by July 4, 2026, or be placed in service by the end of 2027. That credit goes to the company, not to you, so ask whether any of it shows up in your payment. Leases are the only way a company can own the solar on your roof in Florida; our solar lease guide covers escalators and buyouts.
Does Florida have its own solar tax credit?
No. Florida doesn't have a personal income tax, so there's no state income tax return to take a credit against. Any “Florida solar tax credit” you see advertised in 2026 is either the expired federal credit or a loose name for the state's two tax exemptions below.
If a quote shows a net price with 30% subtracted, ask the company to show you in writing which credit that is. For a system you own and install in 2026, there isn't one. Our guide to checking a solar company covers other claims worth questioning.
The property tax exemption
Florida law (section 193.624 of the Florida Statutes) says that for residential property, the value a renewable energy device adds to your home may not be considered when your assessed value is calculated. In plain terms: adding solar doesn't raise your property tax.
- What counts. The law's definition includes solar panels and collectors, inverters, and storage systems, so a battery installed as part of the system is covered too.
- Which systems. It applies to devices installed on or after January 1, 2013, on new and existing homes.
- Do you apply? The statute doesn't set up an application for homes. If your assessment jumps after a solar install, contact your county property appraiser and ask them to apply the renewable energy exclusion. The solar forms you may find on property appraiser websites are usually for businesses, which report equipment on a tangible personal property return.
This matters for a system you own, whether you paid cash or used a loan or PACE. With a lease, the equipment belongs to the leasing company, not to your home.
The sales tax exemption
Florida exempts solar energy systems from sales and use tax (sections 212.02(26) and 212.08(7)(hh) of the Florida Statutes). The definition covers equipment that collects, transfers, converts, stores or uses solar energy, so the panels, inverters, racking and any storage that's part of the system qualify. The saving is on the equipment, at Florida's 6% state rate plus any county surtax.
You usually never see this happen, because your installer handles it. Florida's Department of Revenue suggests that sellers get a signed statement from the buyer certifying the equipment is for use exclusively in a solar energy system, so you may be asked to sign one. Check that your quote doesn't add sales tax to the solar equipment. Products with a small built-in solar cell, like a garden light, don't count.
Florida solar rebates in 2026
There's no statewide solar rebate, and no program that gives Florida homes free panels; our guide to free solar panels in Florida covers what happened to Solar for All. A few cities and city-owned utilities run their own rebates, and most are first come, first served:
| Program | Who can use it | What it pays | The catch |
|---|---|---|---|
| OUC battery rebate | OUC customers with solar of 20 kW or less | $150 per kWh of battery capacity, up to $2,000 | You give up OUC's full retail rate for exported power |
| New Smyrna Beach Utilities battery rebate | NSBU residential solar customers | $150 per kWh, up to $3,000 (8 kWh minimum) | Seasonal: the 2026 window is May 1 to September 30 |
| Boynton Beach Energy Edge | Owners of a building in city limits | $1,500 for solar | System minimums apply; paid until the year's funds run out |
| Dunedin Solar Energy Rebate Grant | Dunedin residents and businesses, not unincorporated areas | $0.25 per watt, up to $2,500 | Funding for the year starting October 2026 depends on the city budget |
You may still see a $4,000 JEA battery rebate listed on other websites. As of September 2026 it no longer appears on JEA's own rebate list, so don't count on it; our JEA guide covers how JEA credits solar instead.
Programs like these change or run out of money with little notice. Confirm with the city or utility before you count a rebate in your numbers. If you're with OUC or New Smyrna Beach, our OUC and New Smyrna Beach guides cover their credit rules in full.
Net metering: still the one that matters most
At FPL, Duke Energy Florida, TECO and FPU, a state rule (Florida PSC Rule 25-6.065) credits the power you send to the grid at the full retail rate month to month, with any credit left at the end of the year paid out at a much lower rate. That rule hasn't changed as of September 2026; a 2022 bill to phase it down was vetoed.
City utilities and co-ops set their own rules, and several pay much less for exported power. Our net metering guide lists the credit rate at every Florida utility we cover.
PACE and SELF financing
Two Florida programs lower the cash barrier without being tax breaks. PACE financing is repaid through your property tax bill, and SELF, a Florida nonprofit lender, lends to buyers who may not qualify for a conventional loan. Both come with trade-offs worth reading about first; our financing guide covers how each works.
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Common questions
Is there a solar tax credit in Florida in 2026?
No. The 30% federal credit ended for home systems whose installation was completed after December 31, 2025, and Florida has no state income tax, so there is no state credit either. Florida does still exempt solar from property tax on the value it adds to your home, and from sales tax on the equipment.
What was the deadline for the federal solar tax credit?
Installation had to be completed by December 31, 2025. The IRS treats the expense as made when installation is completed, so signing a contract or paying a deposit in 2025 wasn't enough if the work finished in 2026.
I installed solar in 2025. Can I still claim the credit?
Yes. A system whose installation was completed in 2025 is claimed on your 2025 federal return using IRS Form 5695. If you already filed without it, ask a tax professional about amending your return.
Can I still use unused solar tax credit from an earlier year?
Generally, yes. If your credit was bigger than your tax bill, the unused part carries forward to later years, and the credit ending for new systems doesn't erase credit you already earned. Confirm the amount with whoever prepares your taxes.
Does adding solar raise my property taxes in Florida?
No. For homes, Florida law says the value that solar panels, inverters and storage add can't be counted in your assessed value. It applies to systems installed on or after January 1, 2013.
Do I need to file a form for Florida's solar tax exemptions?
Usually not. The property tax law doesn't set up an application for homes; if your assessment goes up after you install solar, contact your county property appraiser. For sales tax, your installer normally handles it, and you may be asked to sign a short statement that the equipment is for a solar energy system.
Do batteries get the same tax breaks?
Batteries were covered by the federal credit too, and that ended on the same date. Florida's property tax exclusion lists storage systems in its definition, and the sales tax exemption covers equipment that stores solar energy as part of a solar energy system.
Does a solar lease still get a federal tax credit?
The leasing company may, but you don't. A business credit for companies that own solar equipment still applies to projects that began construction by July 4, 2026 or are placed in service by the end of 2027. Whether any of that lowers your lease payment is up to the company, so ask.
Are there any solar rebates in Florida?
There's no statewide rebate. A few local programs pay cash: OUC and New Smyrna Beach Utilities have battery rebates, and the cities of Boynton Beach and Dunedin have solar rebates. Most are first come, first served, so confirm before you count on one. JEA's $4,000 battery rebate, still listed on some websites, no longer appears on JEA's own rebate list.
Is solar still worth it in Florida without the tax credit?
For many homes, yes, but the math is tighter than it was in 2025, and it depends mostly on your bill and on how your utility credits the power you send to the grid. Our is solar worth it guide works through current costs and payback.
Related guides
- Is solar worth it in Florida in 2026?
- Florida net metering explained
- Is a solar lease a good idea in Florida?
- How people pay for solar in Florida
- Solar battery backup in Florida
- How to compare solar quotes in Florida
- How to check a solar company in Florida
This page is general information, not tax or legal advice. Confirm your situation with a tax professional, your county property appraiser and your utility. Sources: IRS FAQs on the 2025 changes to section 25D · IRS Notice 2025-42 (sections 45Y and 48E) · Florida Statutes 193.624 · Florida DOR: solar energy systems sales tax exemption · Florida PSC Rule 25-6.065 · JEA residential rebates · OUC battery rebate · NSBU conservation programs · Boynton Beach Energy Edge · Dunedin solar grant. Reviewed September 2026.
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