Solar Education
How FPL Net Metering Works for Solar Homes in South Florida
Net metering is an energy bank, not an income stream. Here's how to use it well — and how to size a system around it.
Net metering is one of the most underappreciated parts of going solar, yet one of the most valuable in South Florida. It's the quiet agreement that lets your home use the grid like a savings account: deposit extra solar during the day, withdraw credits later, and reduce what you buy from FPL. For free.
Unlike most people wish, this energy bank isn't designed to make you rich. It's designed to help you optimize your own solar energy over the course of a year. That distinction matters because it changes how a smart system should be sized — and how to read your bill once it's on.
How It Works
The Energy Bank, Explained
FPL net metering is easiest to understand as an energy bank. When your solar produces more than the home is using, the extra is sent to the grid and logged as a credit. Later, whenever your home pulls from the grid, you spend down those credits before being charged.
How a credit typically moves through the year
Deposit
Solar production is higher than the home's load. Extra kWh is exported to the grid and banked in your account.
Withdraw
The home draws from the grid. Banked credits are spent first, before any new charges hit the bill.
When the bill comes
FPL charges you a monthly bill, and that's when calculations of your credit are done too. On your bill, look for information about how many credits were applied and if you have any left in the bank. If you do, they'll automatically roll over to the next month.
At the end of the year
FPL settles up and final calculations appear on your January energy bill. Anything still left in the bank, FPL will buy out at wholesale rates — typically only ~10% of retail. That's why leftover credits are worth far less than using them during the year.
A typical South Florida solar year
The energy bank typically builds up during the first half of the year, when clear skies and cooler weather create a surplus. Late summer through fall, AC load runs hot and rain storms are more frequent — draining the bank.
What this means for your quote
Size the system around useful credits, not extra exports
- Right-size the system. The best value is offsetting your own energy during the year.
- Avoid intentional overproduction. Year-end leftovers are bought out at avoided-cost rates, not the monthly retail credit value.
- Ask how the first FPL bill should look. A good proposal should explain where exported credits appear and when you should see them.
Florida Advantage
The Extra Advantage of Living in FPL Territory
FPL is one of the last utility companies still offering a true 1:1 monthly net-metering credit rate. Most other utilities buy solar energy at a wholesale-style rate while still charging full retail for the energy they sell you. FPL pays the same. That single detail is one of the most underrated long-term advantages of going solar in Florida today.
For you, that means two things. The energy you bank and spend during the year carries its full retail value when you spend it later — not a discounted version of it. Leftover credits at the annual true-up are different; those are bought out at avoided-cost rates. And because the math works out at retail, you don't need to oversize the system to compensate for a haircut on exports. The upfront cost stays lower, and the savings stay high.
Most US utilities
- You buy at
- $0.14 / kWh
- You sell at
- $0.04 / kWh
Exported solar is discounted. Homeowners often oversize the system to make the math work.
FPL today
- You buy at
- $0.14 / kWh
- You sell at
- $0.14 / kWh
Monthly banked credits offset retail energy you buy back. Annual leftovers settle at avoided cost, so sizing still matters.
This window won't last forever
Worth saying directly: most utilities that today pay a lower rate for exported solar started exactly where FPL is now. Over time, as solar adoption grows, utility commissions revisit the math and the 1:1 ratio gets trimmed. That is worth planning around rather than assuming today's terms stay open to new applicants forever.
Get grandfathered in
Homeowners who interconnect under the current rules typically get locked into those rules for a defined term, even after the rate changes for new applicants. If you've been waiting for a reason to go solar, this is one of the better ones — going now can mean banking today's terms before the rules shift.
System Design
Sizing Still Matters
FPL caps the amount of solar you can install based on annual usage. Their published guideline says systems must be estimated to produce max 115% of annual kWh consumption. If space on your roof allows it, locking in some extra production below that limit can be a smart move — trends show that homes consume more over time as more things become electric. If adding an EV, a heat pump, or a pool heater is already in the plans, bring that up before design so the installer can size the system around documented usage and FPL's current rules.
Be careful not to go over the 115% cap unless you have a reason to, or you'll end up giving extra energy away. Because unused credits are bought back at wholesale, every kWh you over-produce is worth a fraction of a kWh you'd otherwise self-consume. A right-sized system squeezes the most value out of net metering.
Application Paperwork
Tier 1 vs. Tier 2: Which Paperwork Applies
FPL splits residential net-metering applications into two tiers based on system size. Most South Florida homes — anything sized for a roughly $250+ monthly bill — land in Tier 2.
Should I consider a Tier 1 system instead?
Yes, it's a bummer for Tier 2 riders — why should utility companies make things easy, after all? But don't overthink it. The savings your big fat Tier 2 system will generate will almost certainly make up for the extra costs of the application, and will leave you less exposed to utility price changes in the long run.
Common Misconception
Net Metering ≠ Power During Outages
This is the single most common misunderstanding we hear. Net metering is a billing arrangement. It is not a backup power feature. If FPL goes dark, your grid-tied solar shuts off too — unless you have batteries.
The reason is simple: if your panels kept exporting energy onto downed lines, they could hurt the line workers restoring service. To keep your home running through an outage, the system needs batteries that can safely island from the grid.
Net metering only
- ✓Lower monthly FPL bill
- ✓Energy bank keeps surpluses useful
- ✓Immune to future energy price increases
- —No backup during an outage
Net metering + battery
- ✓Same net-metering benefits
- ✓Home stays on through outages
- ✓Optimized Time-of-Use rate
- —Higher upfront cost
Sprightful Bottom Line
Use net metering to offset your own energy.
The real value is withdrawing retail-rate energy throughout the year — before any year-end leftover gets cashed out at wholesale. Size the system around your usage, not around exports.
Take These to Your Proposal Call
Questions Worth Asking
Note these down. Bring them to the proposal call. A solar advisor should be able to answer all of them without flinching.
The net-metering checklist
- 01How much energy did my home use over the last 12 months, and what is this design's expected production?
- 02Will this system stay within FPL's sizing limits, accounting for any load I might add (EV, heat pump, pool)?
- 03Is this a Tier 1 or Tier 2 application, and who handles the paperwork end-to-end?
- 04When will the $1 million general liability policy be in place?
- 05Where exactly will exported solar show up on my FPL bill, and what's the first cycle I should see it?
Common Questions
FPL Net-Metering FAQ
Keep Exploring
Related Resources
Bring us your FPL bill
We'll show where solar credits would appear, how your system should be sized, and what net metering can actually do for your home.