Tampa Electric (TECO) operates one of Florida's largest net metering programs, with thousands of residential solar customers in Hillsborough County and the Tampa Bay area. If you're considering rooftop solar — or already have a system — understanding how TECO compensates you for excess generation, the interconnection process, and the recent changes to Florida's net metering rules is essential to maximizing your return.
This guide covers TECO's current net metering program, how credits roll over, the interconnection steps, system size limits, and what Florida's 2022 SB 1024 (the net metering bill that was vetoed by Governor DeSantis) means for your installation in 2026.
How TECO Net Metering Works
Net metering is the policy that lets you offset your electricity bill with the excess solar power your system exports to the grid. TECO follows Florida Public Service Commission (FPSC) Rule 25-6.065, which requires investor-owned utilities to offer net metering. Here's how it works on a TECO bill:
- Bi-directional meter: TECO installs a meter that measures both the kWh you import from the grid and the kWh your system exports.
- Monthly netting: Each month, TECO subtracts the kWh you exported from the kWh you imported. You're billed for the net positive amount at your standard residential rate.
- Excess credits roll over: If you exported more than you imported in a month, the excess kWh credits roll forward to the next month at the full retail rate.
- Annual true-up: Once a year (typically in your installation anniversary month), TECO pays out any remaining banked kWh credits at the avoided-cost rate — a wholesale rate roughly 3–4¢/kWh, much lower than retail.
The economic implication: self-consumption is more valuable than export. A kWh you use directly from your panels offsets a retail-rate kWh ($0.16+/kWh on TECO's Residential Service); a kWh exported and trued-up at year-end pays roughly $0.04/kWh.
System Size Limits & Eligibility
Florida's net metering rule defines three tiers based on system size, each with different requirements:
- Tier 1 (≤ 10 kW AC): Most residential systems. Streamlined application, no application fee, standard interconnection agreement. This covers the vast majority of Tampa-area rooftop installations.
- Tier 2 (10–100 kW AC): Larger residential or small commercial. Requires a more detailed engineering review and may require additional protective equipment.
- Tier 3 (100 kW – 2 MW AC): Commercial. Full engineering study, interconnection cost may apply.
System size is capped at 115% of your prior 12 months of usage. If you don't have 12 months of TECO billing history (new construction, recent move-in), TECO uses estimated load based on home size. This is why solar installers will ask for a year of bills before sizing your system.
The TECO Interconnection Process
From the day you sign your solar contract to the day TECO turns your system on, expect 6–12 weeks. Your installer handles most of the paperwork, but here's what's happening:
- Step 1 — Application: Installer submits TECO's Standard Interconnection Agreement, a one-line electrical diagram, equipment specs (panel/inverter make and model), and proof of insurance ($1M general liability typical).
- Step 2 — TECO engineering review: 2–4 weeks. TECO reviews the application for safety and grid-impact compliance.
- Step 3 — Local permit & installation: Hillsborough, Pinellas, or Pasco County issues a building/electrical permit. Your installer mounts the system. Typical install: 1–3 days.
- Step 4 — Local inspection: County inspector signs off on the install.
- Step 5 — TECO meter swap & PTO: TECO installs the bi-directional meter and issues Permission to Operate (PTO). At this point, your system is officially generating credits.
Until you receive PTO, do not turn on your inverter — generating without an interconnection agreement violates TECO's tariff and Florida code.
Florida Solar Incentives Stack
TECO net metering is one of three layers of incentive that make Florida solar economical. The full stack in 2026:
- Federal Investment Tax Credit (ITC): 30% of the total installed system cost, claimed on IRS Form 5695. Available through 2032 under the Inflation Reduction Act.
- Florida sales tax exemption: 100% sales tax exempt on solar equipment. Saves ~6–7% on the system cost upfront.
- Florida property tax exemption: Solar adds value to your home but does not increase your property tax assessment. This is one of the strongest solar incentives in the country.
- TECO net metering: Full retail-rate credit on monthly netting. No state or utility-level rebate currently.
For a typical 8 kW system in Tampa costing $24,000 before incentives: ITC saves $7,200, sales tax exemption saves ~$1,500, and net metering plus production cuts your bill by roughly $1,400/year. Payback typically lands at 9–12 years.
What SB 1024 (the 2022 Net Metering Bill) Means for You
In 2022, the Florida legislature passed SB 1024, which would have phased down net metering credits from full retail rate to avoided-cost rate (a roughly 75% reduction). Governor DeSantis vetoed the bill on April 27, 2022, preserving the existing program.
However, the FPSC retains rulemaking authority and could revisit net metering compensation. As of 2026:
- Existing systems and new installations under TECO are grandfathered into the current full retail-rate net metering structure for the life of the system.
- If the FPSC reduces compensation in the future, lock-in dates typically apply — install before any rule change to be grandfathered under the higher rate.
- Battery storage paired with solar reduces your exposure to net metering rule changes by maximizing self-consumption.
If you're considering solar in 2026, this regulatory uncertainty is one of the strongest arguments for installing now and pairing with a battery.
Maximize TECO Net Metering Value
Three practical moves to get the most from a TECO solar installation:
- Right-size, don't oversize. Because year-end true-up pays only avoided-cost (~$0.04/kWh) versus the $0.16+ retail rate, oversizing your system means giving TECO power at a 75% discount. Target 90–100% of your annual usage, not 115%.
- Time your high-load appliances to daylight hours. Run the dishwasher, washer, and pool pump between 10 AM and 4 PM when your panels are producing. Every kWh you self-consume offsets a $0.16 kWh, while exporting offsets a $0.04 kWh at true-up.
- Consider a battery for hurricane resilience. A 10–15 kWh battery (Tesla Powerwall, Enphase IQ, Franklin aPower) keeps essentials running during outages and — critically in Florida — during multi-day post-hurricane grid events. Pairs with the federal ITC.
Verify Your Pre- and Post-Solar TECO Bill
Solar installations introduce new line items — net metering credits, distribution charges, gross-receipts adjustments — and bill errors are most common in the first 3–6 months after PTO. Upload your TECO bill for an independent check that:
- Net metering credits are being applied correctly
- Your bi-directional meter reading aligns with your inverter's reported export
- Your fixed charges (customer charge, gross-receipts) are correct
- Your effective rate matches what you'd expect at your kWh level