Despite its moniker as the Sunshine State, Florida's solar expansion has experienced a relatively recent onset due to low electricity rates and prior legislation that did not favor solar development. Currently, Florida ranks 8th in the Solar Energy Industries Association (SEIA)'s national ranking, boasting over 2,000 megawatts (MW) of installed solar capacity. The SEIA even forecasts Florida climbing to the 2nd rank in solar capacity within half a decade.

The Solar and CHP Sales Tax Exemption is one of the earliest notable policies in Florida that spurred the residential solar sector. Implemented in 1997, this exemption relieved Floridians from the state's sales and use tax on solar energy system purchases. Initially set to expire in 2002, this financial incentive was extended for three more years and was made permanent in 2005. The 6% savings from this exemption significantly reduce the upfront cost of solar panel installation.

In terms of regulatory policy, Florida's net metering program has been the most influential for residents. Even though it was introduced later than similar policies in other states, its enactment by the state’s Public Service Commission (PSC) in 2008 signified a pivotal shift towards renewable energy. The program allows customers of investor-owned utilities with their own solar systems to slash their electricity bills as any surplus energy or net excess generation (NEG) produced by a solar system is forwarded as a credit at the full retail rate to the solar owner’s next bill. At the end of a 12-month billing cycle, the utility compensates the solar owner for any remaining NEG at the utility’s avoided cost rate.

The most recent major solar policy permanently enacted by Florida is its Property Tax Exclusion for Residential Renewable Energy Property. Introduced in 2013, this legislation grants a 100 percent tax exemption for residential renewable energy properties and an 80 percent property tax abatement for non-residential renewable energy properties.

Despite these solar-specific policies, Florida has historically lagged behind other states in establishing and expanding Renewable Portfolio Standard (RPS). While many states have successfully driven the growth of the renewable energy sector with RPS policies, Florida is one of the few states without such a policy.

Nevertheless, the future of solar energy in Florida looks promising. Much of the state’s total solar capacity was installed in just the previous three years and currently meets only 1 percent of the state’s electricity needs, indicating vast potential for further growth. With firm commitments from major in-state utilities like Florida Power and Light to bolster solar, the Sunshine State's solar industry seems poised for considerable expansion in the upcoming years.