What Is Net Metering?
Net metering is the rule that makes home solar work financially. Here is the simple version.
During the day, your panels often make more power than your home uses. That extra power flows out to the electric grid. At night, your panels make nothing, so you pull power back from the grid.
Net metering means your utility credits you for the power you send out and charges you for the power you take in. Your bill is based on the net difference. Think of the grid as a free battery: you deposit power by day and withdraw it by night.
Florida Gives You 1:1 Credits
Here is the key fact: Florida utilities credit your extra solar power at the full retail rate — the same price you pay for power from the grid. This is called 1:1 net metering, and it is the best deal a solar owner can get.
Example: your panels send 10 extra kilowatt-hours to the grid during the day. That night you pull 10 kilowatt-hours back. Those cancel out. You owe nothing for that power. In states without 1:1 net metering, the utility might only pay you half the retail rate — or less.
In Orlando, most homes are served by Duke Energy or OUC, and both follow Florida net metering rules. At around 13.5 cents per kilowatt-hour, every unit of power you trade with the grid is worth real money on your bill.
The Law Behind It
Florida net metering is not a favor from the utilities. It is state law. The rule is Florida Administrative Code 25-6.065, and it requires the big investor-owned utilities — including Duke Energy, Florida Power and Light, and Tampa Electric — to offer net metering to customers with solar.
Under the rule, home systems fall into tiers based on size. Most home systems are Tier 1 (10 kilowatts or less), which has the simplest application process. Bigger systems face more paperwork and fees.
The 2022 Fight You Should Know About
In 2022, Florida lawmakers passed a bill — SB 1024 — that would have gutted net metering. It would have let utilities pay solar owners far less than the retail rate for their extra power. That would have wrecked the economics of home solar.
Governor DeSantis vetoed the bill. Net metering survived. But the fight showed that utilities want to change these rules, and they will try again.
The Honest Risk: Rules Can Change
We will not pretend net metering is guaranteed forever. Here is the honest picture:
- Right now, 1:1 net metering is the law in Florida. Your system will be interconnected under today's rules.
- Utilities keep pushing for changes. They argue that solar owners do not pay their fair share of grid costs. Expect more bills like SB 1024 in the future.
- Existing systems are often grandfathered. When states change net metering, current solar owners usually keep their original terms. Getting in under today's rules is itself a form of protection.
No honest solar company can promise the rules will never change. What we can say is that Florida's 1:1 net metering is in force today, and systems installed now lock in today's terms.
How Credits Work Month to Month
Your extra power earns credits that roll over from month to month. In sunny spring months, you may bank a lot of credits. In cloudy or high-use months, you draw them down. Once a year, you settle up with the utility on any leftover balance.
This is why installers size systems to cover close to 100% of your yearly usage — but not much more. Oversized systems just give cheap power to the utility.
Questions to Ask Your Installer
- Will you handle the net metering application with my utility?
- How long does interconnection approval usually take with Duke Energy / OUC?
- Is my system sized to match my yearly usage, not oversized?
- What happens to my credits if net metering rules change later?
Our utility interconnection guide walks through the Duke Energy and OUC process step by step.
Find Out What Net Metering Means for Your Bill
Want to see how 1:1 credits would change your specific electric bill? Fill out our contact form and we will run the numbers for your home — honestly, with no pressure.