What Is Net Metering and How Does It Lower Your Florida Electric Bill?

Net metering. Selling power back to the grid. Bill credits for excess solar energy. If you’re researching solar panels in Florida, these phrases come up constantly — but what do they actually mean for your electric bill?

This post takes a closer look at how net metering works, what Florida’s policy means for homeowners, and why it’s a key part of the financial case for going solar.

Key Takeaways

• Net metering is a billing policy — your utility tracks the power your panels send to the grid and credits it against what you consume.
• Florida has full retail net metering — every kilowatt-hour you export earns a credit at the same rate you pay to use one.
• Credits roll over monthly — surplus production doesn’t disappear; it carries forward to offset future bills.
• System sizing matters — a well-matched system maximizes the value of your credits year-round.
• Net billing was proposed and rejected — Florida kept its favorable net metering policy after HB 741 was vetoed in 2022.

Your Solar System Has a Bank Account

Think of net metering like a checking account for electricity.

During the day, your panels often produce more power than your home uses. That excess gets deposited into the grid. At night — or on cloudy days when production dips — you make a withdrawal, pulling power back from the grid.

At the end of each billing cycle, your utility charges you only for the net difference between what you consumed and what you contributed. If you contributed more than you used, those credits roll forward to next month.

A Few Things Worth Knowing

• Credits are tracked in kilowatt-hours (kWh), not dollars.
• Fixed monthly charges (like your meter connection fee) still have to be paid in cash — credits offset energy use, not flat fees.
• Credits roll over month to month, but reset at the end of a 12-month period.
• Any unused credits at year-end are paid out in cash — but at a reduced rate depending on your utility.

How Florida Power & Light (FPL) Net Metering Works

Florida Power & Light (FPL) is Florida’s largest utility — and yes, it offers full retail net metering.

Every kilowatt-hour you send to the grid earns a credit at the same rate you pay to draw power from the grid. No penalty for producing more than you use during peak months. Those extra credits just carry forward.

FPL’s service territory covers most of Florida outside the Panhandle — Tampa, Miami, Orlando, Fort Lauderdale, and dozens of other cities. Tampa Electric, Gulf Power, and Duke Energy operate similar net metering programs for homeowners outside FPL’s coverage area.

System Size Limits

Florida law sets a few guardrails on system sizing:

• Your system can’t be designed to produce more than 115% of your household’s average annual energy use
• Individual systems can’t exceed 2 megawatts

In practice, this means your installer sizes your system to match your consumption — not to maximize exports. A properly sized system keeps more of your production working for you at full retail value.

What Does Net Metering Actually Save You?

The numbers show significant savings.

A typical Florida homeowner spending around $180 a month on electricity can see that drop to roughly $20 a month with a well-sized solar system and net metering working in their favor. That’s annual savings of close to $1,920 — and over 25 years, it adds up to around $48,000.

Florida homeowners with solar typically save $1,500 to $3,000 per year, depending on system size and energy usage. The reason net metering amplifies those savings: you’re getting full retail value for every kilowatt-hour your panels produce — whether you use it in real time or bank it as a credit.

Wait — Will Florida Switch to Net Billing?

You may have seen this come up in your research. Here’s the short answer: no.

Net billing is a different policy where excess solar is credited at a lower wholesale rate instead of the full retail rate. It significantly reduces the financial value of solar for homeowners.

In 2022, Florida’s legislature passed HB 741, which would have moved the state in that direction. Governor DeSantis vetoed it. Florida kept full retail net metering — and it remains in effect today across all major utilities.

If you’ve read anything suggesting Florida is moving to net billing, that information is outdated.

Three Questions Every Florida Solar Shopper Asks

Do Solar Panels Work at Night?

No — panels need sunlight to generate electricity.

But that’s exactly what net metering is for. Your surplus daytime production earns credits, and those credits cover what you pull from the grid after dark. The financial result is similar to storing energy — without needing a battery.

So Will I Lose Power at Night?

No. If your panels aren’t producing — after dark or on a cloudy day — your home simply draws power from the grid the same way it always has. The goal of a well-designed system is to produce enough kilowatt-hours over the course of the year to offset what you consume, so you’re not dependent on real-time production to keep the lights on.

Many Florida homeowners do add battery storage to keep solar energy on-site for evening use. A Tesla Powerwall or Enphase IQ Battery pairs well with net metering: the battery handles your evening load first, and net metering picks up the rest.

Do Solar Panels Work During a Power Outage?

Not on their own — and this surprises a lot of people.

Standard grid-tied solar systems shut down automatically during outages. It’s a safety requirement: the system has to go dark to protect utility workers on the lines.

To keep your home powered during an outage, you need battery storage. With a battery installed, your system can operate independently of the grid — keeping the lights on, the fridge running, and your devices charged while the rest of the neighborhood waits for power to come back.

In Florida, where hurricane season is a real planning consideration, that backup capability is worth serious thought.

Getting the Most Out of Net Metering Starts with the Right System Size

Net metering rewards homeowners who size their system well.

Too large, and you accumulate credits you’ll never fully use — selling them back at year-end for a fraction of retail value. Too small, and you’re still buying more grid power than you need to.

The sweet spot is a system sized to closely match your actual energy usage. That starts with a real look at your utility bills — 12 months of consumption data, your roof’s characteristics, and any shading factors that affect production.

Frequently Asked Questions Related to Net Metering

Do solar panels work at night?

Panels don’t generate electricity after dark, but net metering compensates for this automatically. Surplus daytime production earns credits that can offset what you draw from the grid at night. Add battery storage and you can use stored solar energy directly, reducing grid reliance even further.

Do solar panels work during a power outage?

Standard grid-tied systems shut off during outages for safety. To keep your home powered, you need battery storage — like the Tesla Powerwall or Enphase IQ Battery — paired with your solar system. This is especially valuable in Florida, where storm-related outages are common.

Will Florida switch to net billing?

No. HB 741, which would have replaced net metering with a lower-value net billing structure, was vetoed by Governor DeSantis in 2022. Florida currently has full retail net metering across all major utilities.

How much can I save with net metering?

Most Florida homeowners with solar save $1,500 to $3,000 per year on electricity. The exact amount depends on your system size, energy usage, and local utility rates.

What happens to unused credits at year-end?

Credits roll over month to month throughout the year. At the 12-month mark, any remaining unused credits are paid out in cash — but at a reduced rate (typically 3 to 5 cents per kWh). Proper system sizing minimizes year-end surplus and keeps more of your production at full retail value.

See What Net Metering Could Mean for Your Electric Bill

Florida’s net metering policy is one of the strongest financial arguments for going solar right now — and it works from day one.

If you’re ready to see what it would actually look like for your home, Florida Electric & Solar offers a free consultation with no obligation and no pressure. We’ll review your energy usage, assess your roof, and show you exactly what solar could save you.

Get your free quote