How Net Metering Works in Florida (FPL, Duke, TECO) — 2026 Guide

Net metering is the mechanism that makes grid-tied solar economical. If you understand it, you understand 80% of whether solar pays off for your Florida home. Here's how it actually works with each major utility in 2026.

## The basic concept

Your solar panels produce the most at midday — usually more than your home uses right then. That excess flows backward onto the grid, and your utility credits you for it. At night, you pull power back from the grid and those credits offset the cost. Your meter literally runs both directions ("net" metering = you're billed on the NET).

## Why it matters so much

Without net metering, midday solar overproduction would be wasted (or sold at near-zero). With it, the grid effectively acts as a free battery — you "bank" daytime excess and "withdraw" it at night at near-retail value. This is why Florida solar still pencils out WITHOUT a physical battery, unlike post-NEM-3.0 California.

## FPL (Florida Power & Light)

- **Export credit:** roughly 1:1 retail rate for excess generation (as of 2026, pending any PSC changes) - **Rollover:** monthly excess credits roll forward - **True-up:** annual settlement — if you've banked excess over the year, FPL pays out at a lower avoided-cost (wholesale) rate, so the goal is to size your system to your usage, not oversize it - **Takeaway:** size to ~100% of annual usage. Oversizing means dumping excess at wholesale = poor ROI.

## Duke Energy Florida

- **Export credit:** near-retail kWh credit for net excess - **Rollover:** credits carry month to month - **True-up:** annual; excess paid at avoided cost - **Takeaway:** similar to FPL — match system size to usage. Duke's interconnection process can run slightly longer; budget for it.

## TECO (Tampa Electric)

- **Export credit:** retail-rate net metering for residential - **Rollover:** monthly credit carryforward - **True-up:** annual settlement at avoided cost - **Takeaway:** TECO territory (Tampa Bay) has strong sun + solid net metering = some of the best residential solar economics in the state.

## Municipal & co-op utilities (OUC, JEA, etc.)

These set their own rules and they vary a LOT. Some (OUC in Orlando) have decent programs; others have weaker export credits or capacity caps. If you're on a muni/co-op, the net metering terms can change your whole analysis — always confirm the current tariff before signing.

## The critical implication for sizing

Because excess beyond your annual usage gets trued-up at the low avoided-cost rate, **the optimal system covers ~95-100% of your annual kWh — not 120%.** When an installer proposes a system that generates 125-130% of your usage, they're selling you more panels than the net-metering math rewards. That's a common way quotes get inflated.

Check your proposal's year-1 production estimate against your annual usage (on your utility bill). 90-105% coverage = right-sized. Above 110% = oversold.

## What could change

Florida's net metering rules are periodically reviewed by the Public Service Commission. There have been past attempts to reduce residential net metering; as of 2026 the favorable rules largely stand, but this is worth confirming at signing. A reputable installer will know the current tariff cold.

## Bottom line

Florida's net metering is good — good enough that solar pays off without a battery, and good enough that right-sizing your system (not oversizing) is the key to maximizing ROI. If your quote's production estimate is way above your actual usage, you're probably being oversold.

Send me your proposal + a recent utility bill and I'll check whether your system is right-sized for your utility's net metering. Free: [reviewingsolar.com/upload](https://reviewingsolar.com/upload).