How Does Net Metering Work in Florida?

By iContracting Solar Team · 2026-09-29

The short answer

Net metering is the billing framework that gives a solar customer credit for electricity sent to the utility grid. For customers of Florida's investor-owned utilities — Florida Power & Light (FPL), Duke Energy Florida and Tampa Electric (TECO) — the statewide framework comes from Florida Public Service Commission Rule 25-6.065. Exported energy is credited at the retail energy rate, excess credits carry forward from month to month, and credits left at the end of the calendar year are paid at the utility's avoided-cost rate.

That framework does not apply in the same way to every Florida utility. Municipal utilities and electric cooperatives can have different programs. Orlando Utilities Commission, for example, uses TruNet Solar and has a separate crediting timeline for new systems. Before relying on any proposal, identify the utility shown on your bill and check its current rules.

What net metering measures

A rooftop solar system often produces and uses electricity at the same time. When the home needs more electricity than the panels are producing, it draws the difference from the grid. When the panels produce more than the home is using, the extra electricity flows to the grid. A meter capable of tracking both directions records those imports and exports.

Net metering determines how the utility accounts for that exchange. It does not mean the monthly bill necessarily disappears. Fixed monthly customer charges still apply, and the result depends on the home's usage, the solar system's production and the utility's rules.

Net metering is also separate from backup power. A standard grid-tied system normally shuts down during a grid outage for safety. Read what happens to solar panels when the power goes out to understand why a battery and backup-capable equipment matter.

The statewide rule for investor-owned utilities

FPL, Duke Energy Florida and TECO are investor-owned utilities. Their net metering programs are governed by Florida PSC Rule 25-6.065. Under the verified framework in effect as of September 28, 2026:

• Systems up to 2 megawatts are eligible.
• Tier 1 covers systems of 10 kilowatts or less, the range that includes many residential installations.
• Exported electricity is credited at the retail energy rate.
• Excess credits carry forward month to month during the calendar year.
• Credits that remain at the end of the calendar year are paid at the utility's avoided-cost rate.
• Fixed monthly customer charges continue to apply.

The retail energy rate and avoided-cost rate are not interchangeable terms. Monthly credits can offset eligible energy usage during the year. The year-end treatment changes the value of credits still unused when the calendar closes. That is one reason a proposal should be based on the customer's real consumption rather than on producing the largest possible system.

There is no scheduled statewide phase-down

Florida considered a major net metering change in 2022 through House Bill 741. The Governor vetoed that bill, so it never became law. There is no scheduled statewide phase-down from that bill in effect.

That history matters because old presentations, articles or sales scripts may describe a future reduction as though it was enacted. It was not. Customers should still check current utility requirements before signing because interconnection procedures and programs can change, but they should not be told that the vetoed 2022 phase-down is current law.

Why monthly carryforward helps

Solar production and household electricity use rarely match perfectly every month. Weather, daylight and household routines change. Under the investor-owned utility framework, excess credits can move from one month to the next within the calendar year. A credit built during one billing month can therefore help offset eligible usage in a later month.

The calendar-year boundary is important. Unused credits do not continue accumulating indefinitely under this framework. At year-end, remaining credits are paid at avoided cost. Because that final treatment is different from the retail energy credit used during the year, consistently producing much more than the property uses can leave a larger share of production for the lower-value year-end treatment.

Why right-sizing matters more than oversizing

A useful solar design starts with the property's consumption history. The goal is not simply to cover every available section of roof. It is to understand how much electricity the property uses, when it uses it, how much usable roof area exists and whether future loads may change the pattern.

Oversizing can create recurring surplus that the customer cannot use before year-end. Right-sizing aims to make more of the system's production useful to the property. That does not mean every month must match exactly, and it does not produce a guaranteed bill result. It means the recommendation should be grounded in actual usage instead of a generic panel count.

Potential future changes also deserve discussion. An electric vehicle, a changed work schedule or new electrical equipment may change consumption. A qualified proposal can account for known plans without inventing uncertain future demand. Our Central Florida Solar Guide connects system planning with batteries, roofing and utility questions.

Municipal utilities and cooperatives are different

Florida's PSC investor-owned utility rule should not be assumed to govern every municipal utility or electric cooperative. These utilities may use their own interconnection agreements, credit values, rollover practices and program names. Check with your utility before treating an FPL, Duke or TECO explanation as applicable to another provider.

OUC is an important Central Florida example. It is a municipal utility, not an investor-owned utility covered by the PSC net metering rule described above. Its rooftop program is called TruNet Solar, and newer customers follow a different export-credit timeline. See the complete OUC TruNet Solar guide before comparing an Orlando proposal with one in a neighboring investor-owned utility territory.

How OUC differs for new systems

OUC customers with applications received by June 30, 2025 are grandfathered at the prior net metering rate for 20 years. Customers interconnected after June 30, 2025 are credited for exports at OUC's Community Solar Energy rate for five years, through June 30, 2030, and then at the Retail Levelized Fuel rate.

A temporary grace period provides full-retail credit through October 31, 2026. Starting November 1, 2026, excess solar is credited within the same billing period instead of rolling forward. OUC does not use the investor-owned utility month-to-month carryforward structure for these newer systems.

For a new OUC customer, that makes on-site use especially important. Daytime electricity use can consume solar as it is produced. Battery storage can hold some daytime production for later use. Neither approach guarantees a particular financial result, but both reduce dependence on exporting energy under a lower-value structure. Confirm the current terms on OUC's official rooftop solar page.

A brief look at FPL, Duke and TECO

FPL, Duke Energy Florida and TECO share the statewide PSC framework, but each utility has its own application documents and interconnection process. A customer should use the forms and instructions for the utility named on the bill.

Duke customers can read our Duke Energy solar guide, including accurate context about Duke's 2026 bill reductions and its closed Hunter's Creek battery pilot. Tampa Electric customers can use the TECO solar guide for its application timeline, battery rules and Energy Planner requirement. Customers comparing current incentives should also read Florida solar incentives in 2026, which explains the end of the residential federal credit and the Florida exemptions that remain.

Questions to ask before signing

Ask the installer to identify your utility, the applicable system tier and the application needed for your equipment. Ask how the proposed size compares with a full year of electricity use. Ask which assumptions depend on exported energy, how year-end credits are treated and which fixed charges remain.

If batteries are included, ask the installer to separate backup objectives from export-credit assumptions. If the proposal mentions a future statewide net metering phase-down, ask for the current enacted authority rather than a reference to the vetoed 2022 bill. If it promises a specific saving or payback period, ask to see every assumption and compare it with the rules published by your utility.

Net metering remains an important part of rooftop solar in Florida, but the right explanation begins with the utility on the customer's bill. Use the statewide framework for investor-owned utilities, the utility's own current instructions, and a design based on the property's real usage.