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Will my power bill really go to zero with solar in Florida?

Use the free tool — Solar Contract Check FL

Will your power bill really hit zero?

A door-to-door salesperson may promise your electric bill will disappear once you have solar. Florida's net-metering rule works differently.

• Under Florida Public Service Commission Rule 25-6.065, when your panels send extra power back to the grid, the utility credits you at the retail rate, month to month.
• Any surplus still left at the end of the year is paid out at the utility's much lower wholesale (avoided-cost) rate — not the retail rate.
• Fixed customer charges still appear on your bill every month, so the bill does not go to zero.
• If your utility is a municipal utility or a cooperative, it may set its own net-metering rules — ask them for their tariff.

See the Florida PSC page on net metering for the rule itself.

The federal tax credit: who actually gets it

The residential clean energy credit can cover 30% of the cost of a system placed in service, but only through the dates Congress has set. Check the IRS Residential Clean Energy Credit page for the current rate and phase-out dates.

• The credit is non-refundable. It only offsets taxes you actually owe. If you owe little in taxes, you may get little or no benefit.
• The credit belongs to whoever owns the system. If you lease the panels or sign a power-purchase agreement (PPA), the solar company keeps the credit — not you.

Confirm with a tax preparer whether you can actually use this credit before you count on it.

Purchase, loan, lease, or PPA — the difference matters

The proposal you were handed is one of four basic structures. Each does something different to your bill, your roof, and a future home sale.

• Cash purchase — you own the system and you get the tax credit. Usually the lowest lifetime cost if the price is fair.
• Loan — you own the system, but the financed price often includes a "dealer fee" of 10–30% that the salesperson may not mention. Ask for the cash price and the financed price separately. A promise of "no payments for 18 months" usually means interest is still building up, and your payment rises unless the credit is applied.
• Lease — the company owns the system. You pay a fixed monthly amount that often increases (escalates) every year. You do not get the tax credit. A UCC fixture filing is placed on your home, and selling the house later requires the buyer to be approved to take over the lease.
• Power-purchase agreement (PPA) — the company owns the system. You pay per kilowatt-hour produced, usually with a yearly escalator, and the same transfer-on-sale issue as a lease.

If you might sell your home within the term of a lease or PPA, that is a fact worth flagging before you sign.

PACE financing: the highest-risk option

PACE lets you repay the solar cost through your property-tax bill. Florida authorizes this under Fla. Stat. 163.08, with disclosure rules attached.

• PACE financing becomes a senior lien on your home — it can come ahead of your mortgage.
• It has blocked refinancing or selling for some homeowners.

Of the ways to pay for solar, PACE carries the highest risk, especially for a senior homeowner. This is not a reason to panic, but it is a reason to read the lien terms closely and ask a professional before signing.

Before you sign: cancellation and the questions to ask

If the sale happened at your home, federal and Florida rules give you a short window to change your mind.

• The FTC Cooling-Off Rule gives you three business days to cancel a door-to-door sale of $25 or more, in writing. The seller must give you a cancellation form.
• Florida's home-solicitation rule also gives three days. After that window, whether you can cancel depends on the contract itself.

Before you sign, ask for and check:

• The production estimate in kilowatt-hours per year, the assumed utility rate, and the assumed rate increase — compare these to your last 12 months of bills.
• Whether there is a production guarantee backing that estimate.
• The age of your roof — a roof older than about 10–15 years usually should be replaced first, to avoid removal and reinstall costs later — and how the panels affect your roof warranty.
• The installer's Florida license, verified through DBPR's license search.
• How offers compare — see the CFPB/FTC guide to solar financing.

What to do next

This page explains the rules in general. It does not look at your proposal. The free tool does — paste the system size, the price, the financing, the term, and the savings claim, and it will read your own numbers against these Florida and federal rules, in English or Spanish. Nothing you paste is stored.

This is not legal, financial, tax or engineering advice, and it can be wrong. Verify the installer's license, get every claim in writing, and confirm with the IRS, the DBPR, and your own utility before you sign anything.

Solar Contract Check FL explains solar contract structures and Florida and federal rules in plain language from official sources; it can be wrong, and it is not legal, financial, tax or engineering advice. Rules and credits change — the linked sources control. Nothing you paste is stored.