For homeowners in Hollywood and the rest of Broward County, constant A/C use drives up Florida Power & Light (FPL) bills. With over 250 sunny days a year, solar panels are a natural solution to gain control over that rising cost. In early 2026, incentives make a home solar system more affordable than ever.
Benchmark Cost Analysis
Typical Solar System Costs in Hollywood, FL
A typical 4kW solar panel system costs around $11,500 before incentives. However, the 30% Federal Solar Tax Credit immediately reduces that burden. This brings the effective cost down to just $8,050 for a solar-only installation.
Increasingly, homeowners are choosing to add a battery for resilience. A solar-plus-battery system has a gross cost around $23,500, which drops to $16,450 after the federal tax credit. This provides essential backup power during hurricane season power outages.
Incentives & Tax Credits
Florida's Solar Incentives for 2026
Florida residents benefit from several key financial incentives that make going solar much easier on the wallet:
- Federal Solar Tax Credit: A 30% credit on the total cost of your system (including panels and battery), claimed on your federal tax return.
- Sales Tax Exemption: Florida completely exempts solar energy systems from the state's 6% sales tax, saving you hundreds of dollars upfront.
- Property Tax Exemption: Installing solar panels will increase your home's value, but it won't increase your property taxes, thanks to Florida's property tax abatement for renewable energy.
Net Metering: Florida Power & Light (FPL)
Net Metering (HB 741 Modified 2024)
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Understanding FPL's Net Metering Policy (HB 741)
Florida's net metering rules have been modified by legislation known as HB 741. For new solar owners in 2026, FPL provides reduced credit for excess power sent back to the grid compared to the full retail rate. This change makes self-consuming your solar power more valuable. Pairing solar panels with a battery allows you to store your excess daytime energy and use it at night instead of exporting it for a lower credit, maximizing your savings and providing invaluable storm backup.
Projected Savings
How Much Can You Save on Your FPL Bill?
With an average electricity rate of $0.138/kWh from FPL, a 4kW system in Hollywood can generate roughly 6,276 kWh per year. This production offsets a significant portion of a typical household's energy usage, leading to estimated annual savings of $866. Over the 25-year lifespan of the panels, that amounts to over $21,000 in saved electricity costs, insulating you from FPL's consistent rate hikes.