What happened to the federal tax credit

For over a decade, homeowners who bought a solar system with cash or a loan could claim 30% of the cost back through the federal Residential Clean Energy Credit (Section 25D). That changed when the One Big Beautiful Bill Act was signed in July 2025: the credit was eliminated for any residential system placed in service after December 31, 2025, with no phase-down period.

In practical terms: if you own your system outright – whether paid in cash or financed with a solar loan – there is currently no federal tax credit available for a system installed in 2026. If a salesperson tells you otherwise for a purchased system, ask them to explain exactly how, since that claim doesn’t match current IRS guidance.

The one exception: systems owned by a third party, such as a solar lease or a Power Purchase Agreement (PPA), can still connect to a federal credit through the commercial side of the tax code. In that case the leasing company, not the homeowner, claims the credit – but some providers pass part of that value through as a lower monthly payment. It’s worth asking any installer offering a lease or PPA to show exactly how that works for their specific offer.

Florida’s property tax exemption

Under Florida Statute 193.624, the value a solar energy system adds to your home is excluded from property tax assessments. Your home’s market value can still rise because of solar, which is good for resale – but the assessed value used to calculate your property tax bill doesn’t rise along with it. You get the equity gain without a corresponding tax increase.

Florida’s sales tax exemption

Qualifying solar equipment – panels, inverters, racking, and eligible battery storage – is exempt from Florida’s 6% state sales tax. Most installers apply this automatically on the invoice, but it’s worth confirming with your installer that the exemption is actually being applied before you sign anything.

Net metering in Central Florida

Florida law requires investor-owned utilities to offer net metering at the full retail electricity rate, with credits rolling over month to month and typically resetting at an annual “true-up,” where any leftover credit is paid out at a lower avoided-cost rate rather than the full retail rate. Duke Energy Florida, which serves a large part of the Orlando area, falls under this requirement.

One local wrinkle worth knowing: Orlando Utilities Commission (OUC) is a municipal utility, not an investor-owned one, so it isn’t bound by the same state net metering mandate and sets its own buyback terms. If OUC serves your address, it’s worth confirming their current program directly with OUC rather than assuming the same terms as Duke Energy Florida apply.