Net Metering in Florida: Your Solar “Savings Account”
Turn sunshine into long-term savings on your energy bills.
Understanding Florida Net Metering
For Florida residents considering renewable energy, net metering is one of our state’s best financial incentives available. Solar net energy metering is what ensures your solar energy systems provide long-term monthly savings.
At SunVena Solar, we specialize in designing high-performance solar power systems that maximize these net metering benefits, allowing solar owners to trade electricity with the electric grid.
What is Net Metering?
Net metering is a billing mechanism that allows solar customers to store their excess energy on the grid.
Most solar energy systems produce more energy during the day than a home consumes. Without net metering (NEM) or home battery backup, this excess solar energy would be lost. However, the net metering program requires your utility to credit you for that excess electricity.
Think of the electric grid as a giant battery for your solar power.
- Daytime (Solar Production): Your solar panels generate more electricity than you need. The excess power flows to the utility, and your bi-directional meter counts the net metering credits.
- Nighttime (Energy Usage): When your solar arrays stop producing, you pull standard electricity from the grid, using up your banked credits.
If your solar production matches your usage, your bill for energy can be reduced to near zero.
The “1-to-1” Retail Rate Advantage
Compared to many states that compensate grid-exported solar at a fraction of the retail price, most Florida utility customers benefit from one of the nation’s strongest solar value signals, qualifying for full 1-to-1 retail rate credits for solar energy exports.
This means every kilowatt-hour (kWh) of solar energy you export is valued at the same price you pay for electricity.
- You Sell Solar Energy: Credited at ~$0.16/kWh
- You Buy Energy: Charged at ~$0.16/kWh
This is far superior to “wholesale” rates offered in other states, making net metering in Florida one of the best policies in the country for solar system owners.
The good news is that over 90% of Florida customers have 1:1 full retail-value NEM programs available, helping solar panel owners save even more on energy costs.
Does My Utility Offer Net Metering?
Florida law, Section 366.91, establishes net metering statewide and mandates that all electric utilities, including investor-owned utilities (IOUs), municipal utilities, and electric cooperatives, must:
- Allow customer-owned solar systems to interconnect with the grid.
- Install a meter to track energy used from the grid and sent back.
- Offer some form of net metering or solar export compensation.
The specific amount you’re compensated for the energy you export back to the grid depends on who you pay your energy bills to.
Investor-Owned Utilities (IOUs)
In the Sunshine State, if you are a customer of one of the investor-owned utilities (IOUs) listed below, the Florida Public Service Commission’s (PSC) adoption of Rule 25-6.065 requires them to offer net energy metering at full retail rates. That means that if your solar production matches your usage, your electricity charges can be reduced to near zero with net metering.
- Florida Power & Light (FPL): This includes Gulf Power Company, which was fully integrated with FPL on 1/1/2022
- Duke Energy Florida
- Tampa Electric Company (TECO)
- Florida Public Utilities Company (FPUC)
Municipal & Co-op Utilities
Municipal utilities such as the Jacksonville Electric Authority (JEA) or the Orlando Utilities Commission (OUC) set their own net metering policies. Some offer net metering at the retail rate, while others credit excess energy at a lower wholesale rate.
Important: Local solar companies like ours track these rate sheets daily. Always check with us to see whether your specific provider supports 1-1 credits.
Important Rules: Tiers, Insurance, and Design
To safely integrate solar power generation into the grid, Florida categorizes solar installations into tiers.
Tier 1 vs. Tier 2 Solar Systems
- Tier 1 (0 – 10 kW): Most residential solar systems fall here. There is no application fee, and insurance companies generally do not require extra liability insurance.
- Tier 2 (10 – 100 kW): For larger homes using more energy, you may need a system larger than 10kW AC. Florida utilities require Tier 2 solar owners to carry a $1 million liability insurance policy.
- Tier 3 (100 kW up to 2 MW): These are massive, generally large commercial or industrial systems.
Note: Many solar installers can design systems with a DC capacity (panels) of ~12kW but an AC capacity (inverter) of 9.9kW to stay in Tier 1, avoiding the insurance headache.
Solar & The “True-Up”
Net metering credits roll over month-to-month within the same calendar year. At the end of the year, your utility performs a “True-Up.”
- If you have excess energy credits remaining, the utility pays you for them.
- The Catch: The payout is at the “avoided cost” (wholesale) rate, not the retail rate.
- Our Strategy: We size solar energy systems to offset 100% of your usage, not more. Generating massive amounts of excess electricity to sell back is rarely profitable due to the low True-Up rate.
The Future of Energy in Florida
Electricity costs in Florida have skyrocketed since 2020. TECO power bills have increased by over 80%, while FPL electric bills have risen by 45%. With energy costs rising and fossil fuels becoming more volatile, the solar industry in Florida is seeing continued growth. Florida residents are increasingly choosing energy independence through solar photovoltaic technology.
Whether you are looking for a massive Tier 2 system or a standard rooftop solar setup, understanding net metering is the first step toward a zero-dollar energy bill.
Florida Net Metering FAQs
Do all Florida utilities offer net metering?
Yes. All electric utilities in Florida—including investor-owned utilities (IOUs), municipal utilities, and electric cooperatives—must:
- Allow solar systems to interconnect with the grid
- Offer some form of solar export compensation
However, the value of those credits varies by utility type.
What is 1:1 full retail net metering?
1:1 retail net metering means that every kilowatt-hour (kWh) of solar energy you export to the grid is credited at the same retail price you pay for electricity.
- You export 1 kWh → credited at ~$0.16
- You later consume 1 kWh → charged ~$0.16
This creates maximum savings and is far more favorable than avoided-cost compensation.
Is net metering worth it in Florida?
Yes. Without a doubt, net metering is a primary driver of solar savings. By banking your solar energy at the full retail price, you can offset high energy costs and inflation. Solar advocates and the National Renewable Energy Laboratory agree that 1 – 1 net metering is the gold standard for solar economics.
Do net metering credits roll over?
Yes. Net metering credits:
- Roll over month-to-month within the same calendar year
- Are applied automatically to future bills
At the end of the year, utilities perform a True-Up to settle any remaining balance.
What happens at the annual “True-Up”?
If you still have unused credits at the end of the year:
- The utility pays you for them
- Payment is made at the avoided-cost (wholesale) rate, not the retail rate
This is why properly sizing your solar system is critical.
What are the downsides of net metering?
The main downside is reliance on the grid. Standard net metering does not provide backup power. If the grid goes down, your solar power shuts off for safety. To have power during outages, you must add battery backup or battery storage to your solar installation.
Is net metering going away in Florida?
As of 2025, Florida net metering is stable. While utility companies have lobbied to reduce rates, Governor DeSantis vetoed legislation (HB 741) that would have ended the retail rate. Current solar customers are typically “grandfathered” for 20 years, meaning if you install solar now, you lock in your net metering benefits regardless of future laws.
Are there size limits or insurance requirements?
Yes. Florida categorizes solar systems into tiers:
Tier 1 (0–10 kW AC)
- Most residential systems
- No application fee
- No additional liability insurance required
Tier 2 (10–100 kW AC)
- Requires $1 million liability insurance
Many systems are designed with higher DC panel capacity but limited to 9.9 kW AC output to remain in Tier 1.
Is Florida net metering guaranteed forever?
No. Net metering policies can change:
- IOU changes require regulatory action
- Municipal and co-op policies can change more easily
That’s why many homeowners consider solar sooner rather than later, especially in full-retail IOU territories.
What about Virtual Net Metering or Community Solar?
Virtual net metering allows energy credits from one site to apply to another. While popular in other states, Florida has been slow to adopt broad virtual net metering policies. However, community solar programs (like FPL’s SolarTogether) allow non-solar customers to subscribe to large solar installations and receive credits, though the savings are often lower than owning your own rooftop solar.
Going Solar With SunVena
At Sunvena, we’re more than a solar company–we’re a group of clean energy professionals passionate about delivering excellent customer experiences while maximizing your solar ROI. Speak with one of our Energy Advisors today and get your free quote to see how much you can save with solar!