For homeowners in Alafaya, the cost of rooftop solar in 2026 is a key question, especially with average electric bills from Progress Energy often hitting nearly $195 per month. The financial equation has changed now that the long-standing federal tax credit is no longer a default for new systems. However, strong Florida sunshine and state-level incentives still make solar a compelling investment for controlling long-term energy costs.
An owned solar system can also be a significant asset, potentially improving your home's resale appeal while protecting you from the impact of rising utility rates in the years to come.
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Open calculatorBenchmark Cost Analysis
Solar Panel System Costs in Alafaya (2026)
The estimated cost for a typical solar installation in the Alafaya area is based on offsetting the average household's electricity usage. Here’s a look at the modeled pricing for a system installed in 2026:
- A 10.9 kW solar-only system is estimated to cost $24,525. This price reflects Florida's sales tax exemption on solar equipment, which helps lower the initial investment.
- Adding a 10 kWh battery for backup power would increase the total cost to around $39,525. While a battery provides valuable resilience during power outages—a key concern during hurricane season—it extends the financial payback period.
These figures are estimates. The final cost depends on your specific roof, equipment choices, and installation details.
Incentives & Tax Credits
Florida's Solar Incentives for 2026
While the 30% federal residential clean energy credit is no longer available for systems placed in service in 2026, Florida offers powerful state-level incentives that make solar financially attractive:
- Property Tax Exemption: Florida law prevents your property taxes from increasing due to the value added by a solar system. This exemption is in place through 2037, ensuring you get the full financial benefit without a higher tax bill.
- Sales Tax Exemption: Solar energy equipment is exempt from Florida's 6% state sales tax, which directly reduces the upfront cost of your system.
These two state policies are the primary financial drivers for homeowners in Orange County, providing clear and immediate value.
Net Metering: Progress Energy Florida
Retail Net Metering
Optional
How Progress Energy Handles Excess Solar Power
Alafaya is in Progress Energy (a subsidiary of Duke Energy) territory, which offers a retail-rate net metering program. This is a crucial factor for your system's financial return. Under this structure, any surplus electricity your panels generate during the day is sent to the grid, and you receive a credit on your bill at the full retail rate. These credits are then used to offset the cost of electricity you draw from the grid at night or on cloudy days, effectively making the grid act like a battery for your excess production.
Projected Savings
Estimated Annual Savings and Payback Period
Installing a 10.9 kW solar system in Alafaya is modeled to generate significant savings by offsetting your Progress Energy bill. The system is designed to cover most of an average home's electricity needs, leading to estimated first-year savings of $1,975.
Based on this, the simple payback period for a solar-only system is approximately 10.5 years. For a system with a battery, the payback period extends to about 15.5 years. It's important to remember that if grid electricity becomes more expensive over time, your solar panels become even more valuable, potentially shortening the real-world payback timeline.