With intense sun and heavy air conditioning use common for homes in Merritt Island, many residents face significant monthly bills from Florida Power & Light. Rooftop solar offers a way to generate your own power, but what does it actually cost in 2026, and what are the real financial benefits now that the primary federal tax credit for homeowners has expired?
The good news is that Florida's state-level policies still provide meaningful financial advantages, and with FPL's current net metering rules, the economics can be quite favorable.
Run your scenario: the calculator uses this city’s utility and tariff data.
Open calculatorBenchmark Cost Analysis
Estimated Solar Panel Cost in Merritt Island
For a typical home in the Merritt Island area, a 10.5 kW solar panel system is modeled to offset the average electricity bill. In early 2026, the estimated gross cost for a system of this size is $23,625.
Since the 30% federal residential clean energy credit is no longer available for systems placed in service this year, the gross cost is the net cost. Financing options can help spread this investment over time. An owned solar system can also be a compelling feature for home resale, adding long-term value beyond the immediate bill savings.
What About a Solar Battery?
Adding a home battery for backup power is an optional upgrade. A 10 kWh battery adds approximately $15,000 to the total system cost. While it extends the payback period, a battery provides peace of mind during power outages, a key consideration during Florida's storm season.
Incentives & Tax Credits
Florida's 2026 Solar Incentives
While the federal tax credit landscape has changed, Florida homeowners still benefit from powerful state-level incentives that make solar a more affordable investment:
- Property Tax Exemption: Florida law prevents your property's assessed value from increasing due to the addition of a solar system. You get the home value benefit without the extra tax burden. This exemption is secured through 2037.
- Sales Tax Exemption: Solar energy equipment is exempt from Florida's 6% state sales tax, which saves you over a thousand dollars on the upfront cost of a typical system.
These two policies directly reduce the financial barriers to going solar, even without a federal income tax credit.
Net Metering: Florida Power & Light Co
Retail Net Metering
Optional
How FPL Handles Excess Solar Power
Merritt Island is in Florida Power & Light (FPL) territory, which currently offers a retail-rate net metering program. This is one of the most beneficial arrangements for solar owners.
Here's how it works: Any solar energy your system produces that you don't use instantly is sent to the grid. FPL credits your account for this excess power at the same retail rate you pay for electricity. This full 1-for-1 credit ensures that all the energy you generate provides maximum value, effectively spinning your meter backward and significantly reducing your monthly bill.
Projected Savings
Projected Energy Bill Savings
Installing a 10.5 kW solar system in Merritt Island is projected to save a homeowner around $1,975 annually on their FPL electricity bills. This results in an estimated payback period of 10.2 years.
These savings come from directly offsetting the power you would have purchased from FPL, which currently costs around 15.6 cents per kWh. As utility rates rise over time, the value of the energy your panels produce increases, offering a hedge against future energy price inflation.