Florida solar net metering policies govern how utilities compensate homeowners for excess solar electricity exported to the grid. In 2026, investor-owned utilities like FPL and Duke Energy mandate 1:1 retail rate credits, while municipal provider OUC utilizes a net billing model that credits exports at lower wholesale rates.
Key Facts / At a Glance
- FPL and Duke Energy provide 1:1 retail net metering under Florida Statute 25-6.065, crediting exports at approximately $0.12 to $0.14 per kWh.
- Orlando Utilities Commission (OUC) transitioned to TruNet in July 2025, crediting new solar exports at a community solar rate of $0.046 per kWh.
- Tier 1 solar systems across Florida investor-owned utilities are capped at 10 kW AC and require no application fees or mandatory liability insurance.
- Tier 2 systems (10 kW to 100 kW AC) mandate a $1 million general liability insurance policy and a manual disconnect switch.
- OUC grandfathering protects existing solar customers who submitted applications before June 30, 2025, locking in 1:1 retail rates for 20 years (until 2045).
How Does Florida Net Metering Work Under Statute 25-6.065?
Under Florida Statute 25-6.065, investor-owned utilities (IOUs) must credit customer-owned renewable generation at the full retail electrical rate for energy sent to the grid. When your solar panels produce more electricity than your home consumes during the day, the surplus is pushed onto the utility grid. The utility’s bi-directional meter records this export, effectively spinning your meter backward.
At night or during cloudy days, you draw electricity from the grid. At the end of the month, the utility bills you only for the “net” difference. If you export more than you import, the excess kWh rolls over to the next month as a 1:1 credit.
Every January, Florida utilities perform an annual true-up. Any unused credits remaining in your “bank” are zeroed out and credited to your account. However, this true-up is paid at the avoided-cost rate (wholesale rate), which averages $0.02 to $0.03 per kWh, rather than the retail rate. Because of this severe price drop, sizing a solar array to produce more than 100% of your annual historical usage results in diminished financial returns.
FPL and Duke Energy Solar Rules and Tiers
FPL and Duke Energy classify residential solar systems into three tiers based on alternating current (AC) capacity, which dictates your interconnection fees and insurance requirements. Because solar panels produce direct current (DC), your system’s tier is determined by the maximum output of your inverter (AC), not the total wattage of your panels. An 11.7 kW DC panel array paired with a 9.6 kW AC inverter qualifies as a Tier 1 system.
- Tier 1 (0 – 10 kW AC): Covers 90% of residential installations. FPL and Duke charge $0 for the application fee and do not require the homeowner to carry an umbrella liability policy. A dedicated manual disconnect switch is not required by the utility, though local city code inspectors may still demand one.
- Tier 2 (10 – 100 kW AC): Designed for large custom homes and small commercial properties. FPL requires a $400 application fee, while Duke Energy requires $240. Homeowners must maintain a $1 million general liability insurance policy naming the utility as an additional insured party. If this policy lapses, the utility has the legal right to disconnect the solar system.
- Tier 3 (100 kW – 2 MW AC): Industrial and large commercial scale. Application fees range from $750 to $1,000, accompanied by a mandatory $2 million liability policy.
Even with 100% solar offset, FPL and Duke Energy customers cannot achieve a $0 bill. Utilities charge a mandatory minimum connection fee—approximately $25 per month for FPL and $30 per month for Duke—to maintain grid infrastructure.
How Does the OUC TruNet Policy Change Solar ROI?
OUC’s TruNet policy, enacted in July 2025, extends solar ROI from a fast 7-9 year payback to a 10-12+ year timeframe by replacing 1:1 retail net metering with wholesale net billing. Because OUC is a municipal utility, it is exempt from the IOU rules governed by Florida Statute 25-6.065.
Under TruNet, new solar customers buy electricity from OUC at the standard retail rate (~$0.14/kWh) but must sell their excess daytime solar production to OUC at the “community solar farm rate” (~$0.046/kWh). This creates a value gap. Sending 1 kWh to the grid and pulling it back that evening results in a net loss of nearly 10 cents.
To bridge the transition, OUC offers a temporary grace period for new applications, granting retail rates through Fall 2026 before permanently dropping to the community solar rate. OUC also instituted PeakSHIFT demand charges, levying a flat fee of $5, $10, or $15 based on the customer’s highest single hour of usage during the month. Because solar production drops to near zero during the peak evening hours of 4 PM to 6 PM, standalone solar panels cannot reliably eliminate this demand charge.
Homes grandfathered into the previous policy (approved before June 30, 2025) retain 1:1 retail net metering until 2045. However, if the home is sold after July 1, 2025, the grandfathered status is voided, and the new buyer is forced onto the TruNet policy.
Financial Comparison: 1:1 Net Metering vs. Net Billing
To illustrate the financial impact of the policy gap, assume a 10 kW system producing 14,000 kWh annually for a home that consumes exactly 14,000 kWh annually. We assume the home self-consumes 50% of the solar power directly as it is generated, and exports 50% to the grid.
| Financial Metric | FPL / Duke (Tier 1 1:1) | OUC TruNet (New Customer) |
| Annual Bill (No Solar) | ~$1,960 | ~$1,960 |
| Export Credit Rate | ~$0.14 (Full Retail) | ~$0.046 (Community Rate) |
| Total Solar Savings | ~$1,960 (100% bill offset) | ~$1,300 (Partial offset) |
| Annual Remaining Bill | ~$300 (Base connection fees) | ~$660 (Imports + fixed fees) |
| Lost Value to Grid | $0 | ~$600/year |
| Optimal System Strategy | Standard Grid-Tied Inverter | Hybrid Inverter + Battery |
Verdict: FPL and Duke Energy customers maximize savings through standard grid-tied setups sized to 100% of their usage. OUC customers must install home batteries to store their $0.046 exports and consume them later, avoiding the $0.14 import rate.
The Step-by-Step Solar Interconnection Process
Securing Permission to Operate (PTO) in Florida requires an average of 45 to 90 days from contract signing to grid activation. Homeowners must never activate their solar system prior to Step 5; pushing power through a standard meter before it is swapped will result in the utility charging the homeowner for their own generated electricity.
- System Sizing and Analysis: Collect 12 months of utility usage data. Size the system to offset 95% to 100% of historical usage. Utilities will reject systems designed to exceed 115% of historical consumption.
- Engineering and Permitting: The solar installer drafts structural and electrical single-line diagrams, submitting them to the local municipal building department (city or county).
- Interconnection Application: The installer submits the Tier 1, 2, or 3 application to the utility. For OUC, this locks in the current rate structure and initiates the application timeline.
- Installation and Inspection: The physical array is mounted and wired, typically taking 1 to 3 days. The local municipality dispatches an inspector to verify National Electrical Code (NEC) compliance and roof integrity.
- Meter Swap and PTO: Upon receiving the passed inspection certificate, the utility dispatches a technician (usually within 10 to 30 days) to swap the existing meter for a Bi-Directional meter. Once swapped, the utility issues an email granting Permission to Operate (PTO), at which point the system is safely activated.
What Are the Most Common Solar Net Metering Mistakes?
The most common mistakes in Florida net metering include oversizing an FPL/Duke system beyond 100% offset and installing an OUC system without a battery backup. Avoiding these engineering pitfalls is the difference between a high-performing asset and a financial liability.
- Oversizing for the True-Up: Unscrupulous installers may quote a 130% offset system, suggesting the utility will cut you a large check for the extra power. Because the true-up is paid at $0.02 to $0.03 per kWh (wholesale), the cost of the extra panels far exceeds the tiny payout. Cap your system at 100% to 105% offset.
- Tier 2 Insurance Lapses: Homeowners with systems producing between 10 kW and 100 kW AC must maintain a $1 million liability policy indefinitely. If you switch home insurance providers and fail to name the utility as an additional insured on the new policy, the utility’s automated systems will flag the lapse and physically disconnect your array from the grid.
- Ignoring Demand Charges in OUC Territory: Installing a standard grid-tied system without a battery in Orlando will not mitigate the PeakSHIFT demand charges. Because solar production drops at 5 PM, just as families return home and run their air conditioners, you will be hit with peak fees. A battery programmed to “Self-Consumption” or “Time-Based Control” discharges during this window to shave the peak.
Frequently Asked Questions
Is Florida doing away with net metering?
No. While there have been multiple legislative attempts (including a 2022 bill vetoed by the governor) to rewrite Florida Statute 25-6.065, full 1:1 retail net metering remains state law for investor-owned utilities like FPL and Duke Energy through 2026.
Do I need a battery with FPL or Duke Energy?
From a purely financial ROI perspective, no. Because FPL and Duke offer 1:1 net metering, the utility grid acts as a free, 100% efficient battery. You only need a physical home battery (like a Tesla Powerwall) if you require backup power during hurricane outages.
What happens to my OUC grandfathered status if I sell my home?
If a home with grandfathered retail net metering was sold before June 30, 2025, the status transferred to the new owner. For homes sold after July 1, 2025, the grandfathered status is voided upon the account transfer, and the new owner defaults to the TruNet community rate policy.
Are true-up payments issued as cash or bill credits?
If you have a credit balance in January, the remaining credits are converted at the avoided-cost rate and applied as a monetary credit to your subsequent utility bills. If you close your account or move, the utility will issue a final check for the remaining credit balance.