Essential Guide to Net Metering in Florida in 2025: What You Need To Know

Riddhi Kumar2024-12-124min read

For many homeowners, net metering is a practical way to reduce electricity bills and make solar energy more financially viable. If you are a homeowner or business property owner interested in installing solar panels in Florida, this guide will provide you with all the information you need to know about net metering in 2025! Let's discuss the current state of net metering in Florida, potential changes in policy for 2025, and how you can take advantage of this program.
Guide to Net Metering in Florida in 2025

Net metering refers to a solar incentive program that allows homeowners and businesses with solar panels to receive credit for any excess electricity they generate and send back to the grid.

For many homeowners, net metering is a practical way to reduce electricity bills and make solar energy more financially viable. If you are a homeowner or business property owner interested in installing solar panels in Florida, this guide will provide you with all the information you need to know about net metering in 2025!

Let's discuss the current state of net metering in Florida, potential changes in policy for 2025, and how you can take advantage of this program.

Current State of Net Metering in Florida

The Sunshine State of Florida is one of the most popular states for solar panel installation as net metering has been available in Florida since 2008. As of now, Florida has a net metering program that allows homeowners to connect their solar systems to the grid and receive credits for any extra energy produced . This net metering program is only applicable to Investor Owned Utilities (IOUs) and customers of the following utility companies are covered:

  • Florida Power & Light (FPL)
  • Duke Energy Florida
  • Tampa Electric Company (TECO)
  • Florida Public Utilities Corporation

Other Net Metering Programs by Local Utility Companies

In addition to the statewide net metering program for IOU customers, many local utility companies in Florida offer their own net metering programs with specific rules and regulations. These include:

Orlando Utilities Commission (OUC)

OUS has a Solar Photovoltaic System Interconnection Policy that allows customers with solar panels to connect to the grid and receive credits for excess energy produced at the same rate they pay for electricity.

Jacksonville Electric Authority

JEA offers net metering to customers with solar installations under their Solar Incentive Program. Customers can receive fuel rate for any excess electricity generated. For customers with solar battery systems, Jacksonville Electric Authority also offers battery rebate programs .

Gainesville Regional Utilities

GRU also has a net metering program that allows customers with solar panels to connect to the grid and receive credits for excess energy produced. However, unlike OUC and JEA, GRU has a cap on the size of the system that can be connected to the grid.

Lee County Electric Cooperative

LCEC offers net metering to customers with solar panels under their Renewable Energy Rider program. Customers are compensated for excess energy at the wholesale rate.

While these were only a few of the local utility companies offering net metering programs, it is important to research and reach out to your specific utility company for more information on available incentives!

Potential Changes in Policy for 2025

As discussed above, Florida is quite a solar-friendly state with the local utilities and IOUs providing net metering programs. However, there are always potential changes in policy that could impact the availability and benefits of net metering. Let's discuss these potential changes in detail!

In 2022, the HB 741 bill came into effect. The HB 741 bill, drafted by Florida Power & Light plans to phase out net metering programs for Floridians from retail rate to wholesale rate. This means that homeowners and businesses with solar panels will receive less credit for excess energy produced, making it less financially beneficial.

(Wholesale rate refers to the amount paid by utility companies to a renewable energy producer for the electricity they generate. Retail rate, on the other hand, is what customers pay for electricity).

While there was no immediate effect on net metering rates in the following years, 2025 could see a reduction to 75% of the retail rate and subsequent years could see further reductions till the rate drops to wholesale.

Birdseye view of residential solar panels
Image Source: pexels.com

How to Take Advantage of Net Metering in Florida in 2025?

Considering potential changes in policy, it is important to take advantage of net metering while it is the most beneficial. If you are a homeowner or business property owner interested in installing solar panels in Florida, follow these steps to make the most out of net metering:

Step 1: Determine your eligibility

As mentioned above, net metering is currently only available for customers of IOUs and select local utility companies. Make sure you fall under one of these categories before proceeding with installation of solar energy systems.

Step 2: Understand your utility's specific rules and regulations

Each utility company has its own net metering program with specific rules and regulations to sell excess solar energy to its grid. It is important to understand these before installing solar panels to ensure you can maximize your benefits.

Step 3: Calculate your potential savings

Before investing in solar panels, it is important to calculate your potential savings with net metering and compare it to the cost of installation. This will help you make an informed decision about whether or not a solar power system is a financially viable option for you.

Step 4: Consider other solar incentives

In addition to net metering, there may be other local, state, or federal incentives available that can further reduce the cost of installation and increase savings from solar energy. (Learn more about other solar incentives available in Florida)

Step 5: Stay updated on policy changes

Keep yourself informed about any potential changes in policy that may impact net metering rates. This will allow you to make adjustments in your energy usage and potentially install additional solar panels before the changes take effect.

Conclusion

Net metering is a beneficial program for homeowners and businesses looking to install solar panels in Florida. While there may be potential changes in policy that could impact its benefits, it is still important to take advantage of net metering while it is available!

In most cases, even if the retail rate is dropped to 75%, net metering can still provide significant savings on electricity bills . So, if you are considering installing solar panels in Florida, make sure to research and understand your options for Florida net metering before making a decision.

And remember to constantly stay informed about any potential changes in policy that may impact its benefits!

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