Florida Utilities Expanded Solar Despite Tax Credit Cuts

State utilities are boosting solar capacity as technology costs drop to 12 cents per watt for commercial operators.

Updated on Sept. 30, 2026 in Utilities

Isometric editorial illustration of solar panel arrays arranged in neat, flat rows across a sandy field, representing energy sector growth. — Florida utility companies are accelerating solar energy integration as component costs decline to 12 cents per watt, offsetting the loss of federal tax incentives. AI Illustration. Upload story photo >

Live Poll

Should Florida utility companies continue to prioritize solar energy expansion as part of their power plans?

Major Florida utility companies have continued to scale solar capacity despite the 2025 removal of federal tax credits under the One Big Beautiful Bill Act. Renewable sources now account for 8% of the state's total energy generation.

Why it matters

Utilities are prioritizing solar investment due to dramatic cost reductions, with panel prices falling from $5-$6 per watt in 2000 to approximately 12 cents per watt today. This shift occurs as operators balance long-term sustainability goals against a power grid still reliant on natural gas for 75% of generation.

Florida's utility solar capacity has grown 33% since 2025, even as renewable energy currently makes up only 8% of the state's total generation mix. Duke Energy Florida has committed to adding 12 new solar sites to the grid to support these capacity targets.

The players

Florida Power & Light

A major vertically integrated utility serving millions of Florida residents and businesses.

Duke Energy Florida

A subsidiary of a national utility holding company managing significant electrical infrastructure.

Tampa Electric Co.

A regional utility provider delivering electricity to the Tampa area and surrounding markets.

Byron Donalds

A political candidate who publicly characterized solar power as a fad.

The details

Utilities are leveraging lower component costs to integrate solar into a system currently dominated by natural gas and nuclear, which provide 75% and 11% of state power respectively. While firms like Florida Power & Light examine small modular nuclear reactors, they report these technologies remain outside immediate cost-effective deployment. Duke Energy Florida is actively expanding its grid footprint, while others are adjusting long-term generation forecasts to incorporate higher solar ratios.

Solar panels cost $5-$6 per watt in 2000.
The Legislature approved a nuclear feasibility study in 2024.
The One Big Beautiful Bill Act removed tax credits in 2025.
Tampa Electric Co. solar generation period concluded in June 2026.
Utility solar expansion targets are set for 2035.

Market Landscape

The expansion of utility-scale solar follows the 2025 passage of the One Big Beautiful Bill Act, which eliminated key tax incentives. Despite this policy change, utilities are continuing to integrate renewables to offset long-term reliance on natural gas and coal.

Operators should monitor local utility rate structures as companies shift energy mixes away from natural gas and toward higher solar penetration. Track 2035 solar capacity targets as a signal for future industrial energy cost stability and regional grid reliability.

The takeaway

The drastic decline in solar hardware costs is driving utility investment even without federal tax support. Operators should audit their current power contracts and examine if long-term utility planning in their region includes significant renewable energy capacity increases by 2035.