What Is Net Metering in Florida? How FPL and Duke Energy Credits Work
Net metering in Florida is a billing arrangement required by state law that credits solar homeowners at the full retail electricity rate for every kilowatt-hour they send back to the grid. FPL, Duke Energy, Tampa Electric, and other investor-owned utilities must participate, and unused credits roll over monthly before resetting at the end of a 12-month period.
If you have solar panels on your roof -- or you are thinking about getting them -- net metering is probably the single most important policy that determines how fast your system pays for itself. It is the reason a well-designed solar installation can cut your electric bill to nearly zero in Florida, sometimes even generating a small credit.
But the details matter. How credits are calculated, when they expire, what happens to your surplus at the end of the year, and whether FPL handles things differently than Duke Energy -- these are the questions that separate homeowners who maximize their investment from those who leave money on the table.
Let's walk through all of it.
Key Takeaways
- Florida law requires full retail-rate net metering for customers of FPL, Duke Energy, Tampa Electric, and other investor-owned utilities. Your solar credits are worth the same price you pay for electricity.
- Credits roll over month-to-month, so the surplus energy you generate in sunny March helps offset your air-conditioning bill in August.
- At the end of your 12-month billing cycle, excess credits are paid out in cash -- but at a much lower avoided-cost rate (roughly 3 to 5 cents per kWh), not at the retail rate.
- Proper system sizing is critical. An oversized system wastes value at the annual reset; an undersized system leaves savings on the table.
- The 30% federal tax credit, plus Florida's sales and property tax exemptions, make solar more affordable than most homeowners realize -- and net metering is what keeps the savings going year after year.
What Is Net Metering?
Net metering is a utility billing mechanism that measures the difference between the electricity your solar panels produce and the electricity your home consumes. When your panels generate more power than you need -- say, on a sunny Tuesday afternoon while you are at work -- that surplus energy flows back into the grid. Your utility meter literally spins backward (or the digital equivalent), and you receive a credit on your account.
Later, when you need more electricity than your panels are producing -- at night, on cloudy days, or during peak summer demand -- you draw power from the grid as usual. The credits you banked earlier offset that usage.
At the end of the billing period, you only pay for the net difference. That is where the name comes from.
Why Net Metering Matters for Solar Homeowners
Without net metering, any electricity your panels send to the grid would essentially be a gift to the utility company. You would only benefit from solar energy you consume the instant it is produced. Since most homes use the bulk of their electricity in the morning and evening -- exactly when solar production is lower -- the economics of rooftop solar would be far less attractive.
Net metering solves this timing mismatch. It turns the grid into a virtual battery, storing your excess production as credits you can use later.
How Net Metering Works in Florida
Florida's net metering rules are established under Florida Administrative Code and enforced by the Florida Public Service Commission (PSC). Here is what the law requires:
- Full retail-rate crediting. When your solar panels export electricity to the grid, you earn credits at the same per-kWh rate you would pay to buy that electricity. If your utility charges 14 cents per kWh, your credits are worth 14 cents per kWh.
- Mandatory participation by investor-owned utilities. FPL, Duke Energy Florida, Tampa Electric (TECO), and Florida Public Utilities are all required to offer net metering.
- Monthly rollover. Any credits you do not use in a given billing cycle carry forward to the next month.
- Annual true-up. At the end of your 12-month billing period, any remaining excess credits are converted to cash and paid to you -- but at the utility's avoided-cost rate, which is significantly lower than retail.
- System size limit. Residential net-metered systems are generally capped at 10 kW for standard interconnection, though larger systems (up to 2 MW) can qualify under different interconnection agreements.
The bottom line: Florida's net metering policy is genuinely favorable for solar homeowners. You get dollar-for-dollar value for every kWh you export, as long as you use those credits within your 12-month cycle.
FPL Net Metering: How Credits Work With Florida Power & Light
Florida Power & Light is the largest electric utility in the state, serving roughly 5.8 million customer accounts across South Florida, the Treasure Coast, and parts of Central Florida. If you live in Miami-Dade, Broward, Palm Beach, or many other counties, FPL is your provider.
FPL's Net Metering Process
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Application and interconnection. After your solar system is installed, your installer submits an interconnection application to FPL. Once approved, FPL installs a bi-directional meter (or reprograms your existing smart meter) that tracks electricity flowing in both directions.
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Monthly billing. Each month, FPL calculates your net usage. If you consumed more than you produced, you pay for the difference at the standard retail rate. If you produced more than you consumed, the excess credits carry over.
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On your bill, you will see two readings: energy delivered to you (from the grid) and energy received from you (your solar exports). Your net charges reflect the difference.
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Annual settlement. At the end of your 12-month net metering period, FPL pays out any remaining credits at their avoided-cost rate. For most FPL customers, this works out to roughly 3 to 4 cents per kWh -- a fraction of the 14+ cent retail rate.
FPL Rate Considerations
FPL uses a tiered rate structure that includes a base charge, an energy charge, and various surcharges. Net metering credits offset the energy charge portion, but you will still owe the base customer charge (currently around $8-10 per month) regardless of how much solar energy you produce. You cannot net-meter your way out of the base charge.
FPL also has time-of-use (TOU) rate options. If you are on a TOU plan, your credits may be worth more during peak hours and less during off-peak hours, which can work in your favor since solar production often coincides with peak pricing windows.
Duke Energy Net Metering Florida: How Credits Work
Duke Energy Florida serves approximately 1.9 million customers across Central and Northern Florida, including parts of the Tampa Bay area, Orlando, St. Petersburg, and Ocala.
Duke Energy's Net Metering Process
The overall framework mirrors what FPL offers, since both utilities operate under the same state rules:
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Interconnection application. Your installer submits the paperwork; Duke Energy reviews and approves the system; a net meter is set up.
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Monthly crediting at full retail rate. Duke Energy credits your excess generation at the current retail rate, just like FPL. Any surplus rolls over month to month.
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Annual payout of remaining credits. At the end of your 12-month cycle, Duke Energy converts leftover credits to cash at the avoided-cost rate. Duke's avoided-cost rate is typically in the 3 to 5 cent per kWh range, though the exact figure fluctuates.
Key Differences Between Duke Energy and FPL Net Metering
While the state-mandated framework is the same, there are practical differences worth noting:
- Rate structures differ. Duke Energy's per-kWh energy charges and base charges are structured differently than FPL's. Your savings depend on your specific rate plan.
- Billing cycle timing. Your 12-month net metering anniversary is tied to your interconnection date, not the calendar year. This can vary between utilities.
- Customer portal and monitoring. Duke Energy and FPL each have their own online tools for tracking solar production and credits. Your installer should help you get set up with whichever portal applies to you.
- Processing timelines. Interconnection approval times can vary. Duke Energy and FPL each have their own review queues, and turnaround times may differ by a few weeks.
Regardless of which utility serves your area, the core benefit is identical: full retail-rate credits for your solar exports.
How Solar Credits Are Calculated
Understanding the math behind your credits helps you plan your system size and manage expectations. Here is a simplified example:
Monthly Calculation Example
Let's say you are an FPL customer paying an effective rate of $0.14 per kWh.
| Category | Amount |
|---|---|
| Your home consumed from the grid | 900 kWh |
| Your solar panels exported to the grid | 600 kWh |
| Net consumption | 300 kWh |
| Your charge (300 kWh x $0.14) | $42.00 |
| Plus base customer charge | ~$8.50 |
| Total bill | ~$50.50 |
Without solar, that 900 kWh would have cost roughly $134.50 (including the base charge). Net metering saved you $84 that month.
What Happens in High-Production Months
In spring months -- March, April, and May -- Florida gets abundant sunshine, temperatures are moderate (meaning less air conditioning), and solar panels operate efficiently. Many homeowners produce more than they consume during these months.
If you exported 1,100 kWh but only consumed 800 kWh from the grid, you would carry over a credit of 300 kWh to the next month. That banked credit becomes extremely valuable when summer hits and your AC is running constantly.
The Avoided-Cost Payout
At the annual reset, if you still have 200 kWh of unused credits, the utility pays you at avoided cost:
- 200 kWh x $0.04 (approximate avoided-cost rate) = $8.00
Compare that to the retail value of those same credits: 200 kWh x $0.14 = $28.00. You are leaving $20 on the table. This is exactly why proper system sizing matters so much.
The 12-Month Reset Explained
The annual true-up is one of the most misunderstood parts of net metering in Florida. Here is how it actually works.
Your Net Metering Anniversary
Your 12-month cycle starts on the date your system is interconnected and begins operating -- not January 1st. If your system went live on March 15th, your net metering year runs from March 15th to March 14th of the following year.
What Happens at the Reset
At the end of your 12-month period:
- The utility tallies your remaining credit balance. This is the total number of excess kWh credits you have accumulated over the year that were not used.
- Remaining credits are converted to cash at the utility's current avoided-cost rate and either applied as a bill credit or paid to you directly.
- Your credit balance resets to zero. You start the next 12-month cycle fresh.
Why the Reset Matters for System Design
This reset mechanism creates a clear incentive: you want to design your system so that you use nearly all your credits within each 12-month cycle. A perfectly sized system would leave you with close to zero excess credits at the annual reset, meaning you captured the full retail value of every kWh your panels produced.
An oversized system that consistently racks up large surplus balances is effectively selling electricity to the utility at 3 to 5 cents per kWh -- a poor return. An undersized system means you are still buying too much grid electricity at 14+ cents per kWh.
This is one of the reasons working with an experienced solar installer matters. At RIV Solar, we analyze your actual electricity usage patterns -- not just your annual total, but your month-by-month consumption -- to design a system that maximizes the value you get from net metering. If you want to see what a right-sized system looks like for your home, request a free solar assessment from RIV Solar.
How to Maximize Your Net Metering Credits
Once your system is installed and connected, there are several strategies to squeeze the most value out of net metering.
1. Shift Energy-Intensive Tasks to Daytime
Running your dishwasher, washing machine, dryer, and pool pump during peak solar hours (roughly 10 AM to 3 PM) means you are consuming your own solar electricity directly rather than pulling from the grid. This reduces the amount you need to draw at night and keeps your credit balance working in your favor.
2. Monitor Your Production and Usage
Both FPL and Duke Energy offer online portals where you can track your solar production and grid consumption. Many solar systems also come with their own monitoring apps. Check these regularly to understand your patterns and identify opportunities.
3. Consider Battery Storage
A home battery system like the Tesla Powerwall or Enphase IQ Battery stores your excess solar energy for use at night or during outages instead of sending it to the grid. While net metering credits are valuable, a battery adds resilience and can help you avoid drawing from the grid during the most expensive rate periods.
RIV Solar installs battery storage systems alongside solar panels. If you are interested in pairing solar with battery backup, we can design an integrated system that gives you both savings and energy independence. Learn more about our battery options.
4. Right-Size Your System From the Start
This is the most impactful decision you will make. Work with an installer who takes the time to analyze your actual usage data -- ideally 12 months of utility bills -- rather than relying on rough estimates. A system that is 10-15% larger than your annual usage can be a smart hedge against future consumption increases, but going significantly beyond that wastes the value advantage of net metering.
5. Take Advantage of All Available Incentives
Net metering handles your ongoing savings, but do not overlook the upfront incentives that reduce your system cost:
- Federal Investment Tax Credit (ITC): 30% of your total system cost, including battery storage, can be claimed as a credit on your federal income taxes.
- Florida sales tax exemption: Solar energy systems are exempt from Florida's 6% sales tax.
- Property tax exemption: The added home value from your solar system is exempt from property taxes in Florida.
These incentives, combined with net metering savings, are why solar has become one of the strongest home investments in the state. RIV Solar offers $0-down financing options that let you start saving from day one without a large upfront payment. Get your personalized quote.
Frequently Asked Questions
Does Florida still have net metering in 2025?
Yes. Florida's net metering rules remain in effect. Investor-owned utilities including FPL, Duke Energy, Tampa Electric, and Florida Public Utilities are required to offer full retail-rate net metering to residential solar customers. While there have been legislative discussions about modifying these rules, the current policy stands.
How much can I save with FPL net metering?
Savings vary based on your system size, electricity usage, and roof orientation, but most FPL customers with a properly sized solar system reduce their annual electricity costs by 70% to 100%. On average, that translates to $1,500 to $3,000 or more per year in savings, depending on your consumption.
What happens to my net metering credits if I move?
Net metering credits are tied to your utility account, not your solar system. If you sell your home, your accumulated credits do not transfer to the new owner. You would receive a final payout of any remaining credits at the avoided-cost rate. The new homeowner would start their own net metering agreement.
Can I add a battery to my existing net-metered solar system?
Yes. Adding a battery to an existing solar installation is straightforward, though it may require an updated interconnection agreement with your utility. A battery lets you store excess solar energy for nighttime use or outage protection rather than relying entirely on net metering credits.
Is net metering the same as selling electricity back to the utility?
Not exactly. Net metering is a crediting system, not a power purchase agreement. You earn credits that offset future electricity purchases at the retail rate. You are not technically selling electricity -- you are reducing your net consumption. Only at the annual reset are excess credits converted to a cash payment, and that payout happens at the much lower avoided-cost rate.
The Bottom Line
Net metering is what makes rooftop solar work financially for Florida homeowners. The ability to earn full retail-rate credits for every kilowatt-hour you send to the grid means your solar panels deliver value around the clock -- not just when the sun is shining on your roof.
Whether you are an FPL customer in South Florida or a Duke Energy customer in the central part of the state, the policy works the same way: produce more than you use, bank the credits, and use them when you need them. The key is designing a system that closely matches your annual consumption so you capture the maximum value before the 12-month reset.
If you are ready to explore what net metering could mean for your specific home and utility bill, the team at RIV Solar can walk you through the numbers. We have been helping Florida homeowners go solar with transparent pricing, in-house installation crews, and a 25-year warranty. We also offer bilingual support for our Spanish-speaking customers.
Schedule your free solar consultation with RIV Solar and find out exactly how much you could save.
