Duke Energy Florida (DEF) serves approximately 1.9 million customers across a 13,000-square-mile service area, making it one of the state's largest investor-owned utilities. For homeowners considering solar installation, understanding DEF's specific programs, requirements, and compensation structures is essential for maximizing your return on investment. This comprehensive guide covers everything you need to know about going solar with Duke Energy Florida, from net metering policies to the complete interconnection process.
Whether you're comparing Duke Energy to Florida Power & Light's solar programs or evaluating your options for the first time, this guide provides the detailed information you need to make an informed decision.
Quick Answer: Duke Energy Florida offers full retail net metering for solar customers, crediting excess generation at the same rate you pay for electricity. The utility charges a $30 monthly minimum bill regardless of solar production. DEF also offers the Clean Energy Connection community solar program for customers who cannot install rooftop panels. No utility rebates are currently available, but Florida's property tax and sales tax exemptions provide meaningful savings.
Key Takeaways
Before exploring solar options, confirm you're in Duke Energy Florida's service area. Duke Energy operates two separate utilities in Florida with different service territories:
This guide focuses specifically on Duke Energy Florida programs. DEP customers should contact Duke Energy directly for northwest Florida-specific information.
Net metering is the billing arrangement that makes rooftop solar financially viable for most homeowners. Under Florida's net metering rules established by the Florida Public Service Commission (Rule 25-6.065), Duke Energy Florida must credit your account for excess solar electricity at the full retail rate.
When your solar panels produce more electricity than your home uses, the excess flows to the grid. Duke Energy credits your account at the same rate you pay for electricity, typically $0.11-0.14 per kWh depending on your rate schedule. This is known as full retail net metering, and it's one of the most favorable policies in the country for solar customers. To understand how your solar system connects to the grid for net metering, review our guide on how solar panels connect to the grid.
Excess credits roll over month-to-month throughout the year. This allows you to bank credits during sunny summer months and use them during shorter winter days or periods of higher consumption.
At the end of your annual billing cycle (typically 12 months from your interconnection date), Duke Energy settles any remaining excess credits. If you have accumulated more credits than you used over the year, Duke pays out the excess at the avoided cost rate, which is approximately $0.02-0.04 per kWh. This wholesale rate is significantly lower than retail, so the best strategy is to size your system to minimize year-end surplus.
Even if your solar panels produce enough electricity to fully offset your usage, you'll still pay Duke Energy's $30 monthly minimum bill. This charge covers the cost of maintaining grid infrastructure and ensures all customers contribute to system reliability. The minimum bill includes the base customer charge ($12.45) plus additional grid maintenance costs.
Important: Income-qualified customers may be eligible for minimum bill modifications through 2027. Contact Duke Energy to determine eligibility based on participation in programs like SSI, Medicaid, TANF, SNAP-EBT, or LIHEAP.
Duke Energy Florida offers several residential rate schedules. Most solar customers remain on the standard residential rate (RS-1), but you should evaluate whether time-of-use rates might benefit your specific usage patterns:
Understanding the current incentive landscape helps you accurately calculate your solar investment and set realistic payback expectations. While Duke Energy does not offer direct rebates, Florida provides meaningful tax benefits that reduce your overall cost. For comprehensive details on available incentives, visit the DSIRE database for Florida solar incentives.
Duke Energy Florida does not currently offer any rebates or direct incentives for residential solar installation. Some solar companies may incorrectly advertise "utility rebates" - verify any claims directly with Duke Energy before signing contracts.
While Florida does not have a state income tax (and therefore no state solar tax credit), the state provides two valuable exemptions that reduce your solar costs. The Florida Solar Energy Center provides detailed information on state energy policies.
Property Tax Exemption (F.S. 193.624): Under Florida Statute 193.624, solar energy systems are 100% exempt from property tax assessment through December 31, 2037. This means installing a $25,000 solar system won't increase your property taxes, even though it increases your home's market value. For a typical system, this exemption saves $300-600 annually in avoided property taxes.
Sales Tax Exemption (F.S. 212.08): Solar energy equipment is exempt from Florida's 6% state sales tax (plus any applicable local sales taxes, typically 0.5-1.5%). On a $25,000 system, this exemption saves approximately $1,500-1,875 in avoided sales tax.
Duke Energy Florida classifies solar installations into tiers based on system capacity. Each tier has different application requirements, fees, and technical standards. Understanding these requirements upfront helps ensure a smooth solar permit approval process.
Most residential solar installations fall into Tier 1. These systems have the simplest interconnection requirements:
Larger residential or small commercial systems require additional documentation and fees:
All solar equipment must meet specific technical standards. According to the U.S. Department of Energy's solar planning guide, ensuring equipment compliance is essential for safe operation:
The interconnection process connects your solar system to Duke Energy's grid and enables net metering. The solar interconnection agreement process varies by system size but follows a consistent framework. For detailed guidance on supply-side and load-side interconnection methods, review our technical guide.
Your solar installer typically submits the application through Duke Energy's online interconnection portal. Required documentation includes the completed application form, electrical single-line diagram, equipment specification sheets (inverter, panels), site plan showing system location, and proof of insurance (Tier 2+ systems).
Duke Energy reviews your application for completeness and technical compliance. They may request additional information or clarification. For Tier 2 systems, an engineering review determines if grid upgrades are needed.
Once approved, Duke Energy issues an "Approval to Install" letter. This authorizes your contractor to begin installation but does NOT permit operating the system. According to the solar permitting timeline by state, Florida typically averages 34 days for complete approval.
Separately from Duke Energy approval, you need permits from your local Authority Having Jurisdiction (AHJ). Our solar permit design services can help ensure your permit package meets local requirements. Thanks to Florida's HB 683 (effective July 2025), residential solar permits must be approved within 5 business days or face automatic approval.
Your installer mounts the panels, installs inverter(s), connects wiring, and configures the system. For guidance on optimizing panel placement, see our guide on optimal solar panel orientation. The system remains OFF until final approval.
Schedule inspection with your local building department. Inspector verifies electrical connections, structural mounting, code compliance, and safety requirements. Your installer should be present to address any concerns.
After passing inspection, submit documentation to Duke Energy. They install a bi-directional meter (if needed) and issue Permission to Operate. Learn more about bi-directional meter requirements in our detailed guide. Only after receiving PTO can you legally operate your solar system.
Typical Interconnection Timeline
For customers who cannot install rooftop solar (renters, unsuitable roofs, shading issues, HOA restrictions), Duke Energy offers the Clean Energy Connection community solar program.
You subscribe to a portion of a large-scale solar facility operated by Duke Energy. Your subscription generates bill credits based on solar production, without any equipment on your property. According to Duke Energy's official announcement, the program is designed for a seven-year full payback.
The 1.5% annual credit increase beginning in Year 4 (month 37) gradually improves the economics. According to Duke Energy, bill credits are projected to first exceed subscription fees around Year 3-5, with full payback achieved by approximately Year 7. As long as you remain in the program for seven years, the annual bill credits are projected to exceed subscription costs, creating real customer savings over time.
Duke Energy reserves 26 MW of Clean Energy Connection capacity for income-qualified customers. Participants in SSI, Medicaid, TANF, SNAP-EBT, LIHEAP, or Duke Energy's Neighborhood Energy Saver program receive an enhanced credit rate ($9.03/kWh vs. $8.35 subscription fee), providing immediate savings from day one rather than requiring a multi-year payback period.
Adding battery storage to your solar system provides backup power and potential additional savings, though Duke Energy's full retail net metering reduces the financial incentive compared to utilities with less favorable policies. For comprehensive battery backup design, explore our off-grid solar system design services.
With Duke Energy's full retail net metering, the financial case for batteries is primarily about backup power rather than bill savings. Since excess solar already receives full retail credit, storing energy in a battery (with 10-15% round-trip efficiency losses) doesn't provide additional financial benefit on standard rates.
Popular battery options include the Tesla Powerwall (13.5 kWh, ~$12,000-15,000 installed), Enphase IQ Battery (3.36-10.08 kWh modular, ~$10,000-20,000 installed), and LG RESU (9.6-16 kWh, ~$10,000-16,000 installed).
Florida law provides strong protections for solar customers, ensuring your right to install solar panels and receive fair compensation for excess generation.
Florida's Solar Rights Act prohibits homeowners associations (HOAs) from banning solar installations. While HOAs may establish reasonable aesthetic guidelines (such as requiring panels to be parallel to the roofline), they cannot prohibit solar energy systems or require approval processes that effectively prevent installation.
In April 2022, Governor DeSantis vetoed HB 741, which would have significantly reduced net metering compensation for new solar customers. This veto preserved full retail net metering in Florida, maintaining the current favorable compensation structure. For the latest on Florida's net metering policies, refer to the EPA's interconnection and net metering guide.
As discussed earlier, Florida law exempts solar systems from property tax assessment through 2037. This protection is codified in state statute, not subject to local government discretion.
To illustrate potential savings, consider a typical Duke Energy Florida customer in the Orlando area. Use the NREL PVWatts Calculator to estimate production for your specific location.
These figures assume Duke Energy's electricity rates continue increasing at their historical average of approximately 3% per year. Actual savings may vary based on individual energy usage patterns, system performance, and future rate changes.
Duke Energy Florida's full retail net metering, combined with Florida's solar-friendly policies and abundant sunshine, makes rooftop solar a financially attractive investment for most homeowners. While the utility doesn't offer direct rebates, the combination of net metering credits, property tax exemption, and sales tax exemption provides meaningful financial benefits.
For customers who cannot install rooftop solar, the Clean Energy Connection program offers a zero-upfront-cost alternative with projected savings over time. However, rooftop solar generally provides superior long-term returns and adds value to your home.
The key to maximizing your solar investment is proper system sizing (to minimize year-end excess credits paid at wholesale rates) and working with a qualified installer who understands Duke Energy's interconnection requirements.
Ready to explore solar for your Duke Energy Florida home? Contact our team for professional solar permit design services that ensure your project meets all utility and local requirements for smooth approval.
Does Duke Energy Florida offer solar rebates?
No. Duke Energy Florida does not currently offer any rebates or direct financial incentives for residential solar installation. Be cautious of solar companies claiming otherwise. The primary financial benefits come from net metering bill credits and Florida's state tax exemptions (property and sales tax).
What is Duke Energy Florida's minimum bill for solar customers?
Duke Energy Florida charges a $30 monthly minimum bill for all customers, including those with solar panels. Even if your solar system produces enough electricity to fully offset your usage, you'll still pay this minimum charge, which covers grid infrastructure and maintenance costs.
Can I sell excess solar electricity back to Duke Energy?
Yes, through net metering. Excess energy your panels produce is sent to the grid and credited to your account at the full retail electricity rate. Credits roll over monthly throughout the year. At your annual true-up, any remaining excess credits are paid out at the lower wholesale rate (approximately $0.02-0.04/kWh), so it's best to size your system to minimize year-end surplus.
How long does Duke Energy's interconnection process take?
For Tier 1 systems (under 10 kW), the complete process typically takes 3-6 weeks from application to Permission to Operate. Tier 2 systems may take 6-10 weeks due to additional engineering review requirements. For detailed solar permit timeline information, see our complete guide.
What's the difference between Duke Energy Florida and Duke Energy Progress?
Duke Energy operates two separate utilities in Florida. Duke Energy Florida (DEF) serves central Florida, while Duke Energy Progress (DEP) serves a small area in northwest Florida near Pensacola. Programs, rates, and requirements differ between the two utilities. This guide specifically covers Duke Energy Florida.
Can my HOA prevent me from installing solar panels?
No. Under Florida's Solar Rights Act (F.S. 163.04), HOAs cannot prohibit solar installations. They may establish reasonable aesthetic guidelines, but these cannot effectively prevent installation or unreasonably increase costs.
Do I need a battery with my solar system?
Batteries are optional with Duke Energy Florida's net metering. Since you receive full retail credit for excess solar sent to the grid, batteries primarily provide backup power value rather than additional bill savings. However, for customers concerned about power outages (especially during hurricane season), battery backup can be a worthwhile investment.
What is Clean Energy Connection?
Clean Energy Connection is Duke Energy Florida's community solar program. It allows customers to subscribe to a portion of a large-scale solar facility without installing
panels on their property. Subscribers pay a monthly fee ($8.35/kW) and receive bill credits based on solar production. More information is available at Duke Energy's illumination site.
Will solar panels increase my property taxes?
No. Under Florida Statute 193.624, solar energy systems are 100% exempt from property tax assessment through December 31, 2037. While your home's market value may increase, your property taxes will not increase due to the solar installation.
How do I get started with Duke Energy Florida solar?
Begin by getting quotes from multiple licensed solar installers in your area. They will assess your roof, review your electricity usage, design an appropriately sized system, and handle the interconnection application process. For residential solar design assistance and permit preparation, our team can help ensure a smooth approval process.
We are dedicated to providing top-notch solar permit services to homeowners, business owners, DIY, and solar installers. Contact us today.
