Updated for 2026
There is no federal solar water heater tax credit for systems installed in 2026: the 30% Residential Clean Energy Credit ended for installations completed after December 31, 2025. Cape Coral Solar Water Heater Pros has installed solar water heaters and solar pool heaters in Southwest Florida since 2010, and we wrote this page because many websites still advertise a 30% credit that a 2026 buyer cannot claim.
Florida still offers real savings: no sales tax on solar equipment, a property tax exclusion for solar water heaters, and a state law that limits what an HOA can do about your collectors. This guide covers each one for homeowners in Lee and Charlotte counties, with links to the statute or agency behind it.
It is general information, not tax advice, so confirm your own situation with a tax professional before you file.
Federal credit
The federal 25D Residential Clean Energy Credit does not apply to any solar water heater installed after December 31, 2025. The 2025 budget law commonly called the One Big Beautiful Bill Act cut the credit off years early, and the IRS Residential Clean Energy Credit page reflects the change.
The IRS treats the expense as made when the installation is complete, not when you sign or pay. A deposit paid in 2025 for a system finished in 2026 does not qualify.
If a company advertises a 30% credit on a 2026 installation, ask it to show you the IRS source. We do not count a federal credit on any 2026 estimate.
State sales tax
Solar energy systems and their components are exempt from Florida sales tax, and the exemption still applies in 2026. It comes from Section 212.08(7)(hh) of the Florida Statutes and is explained in the Florida DOR tax information publication TIP 19A01-09.
The exemption covers equipment that collects and uses the sun's energy for heating, so solar water heaters and solar pool heaters both qualify. It saves the 6% state sales tax plus any county surtax on that equipment.
Property tax
Under Florida Statute 193.624, the value a renewable energy source device adds to a home is excluded from its assessed value for property tax. A solar water heater on a residential property installed in 2013 or later counts, so adding one should not raise your tax bill.
Solar pool heating is less clear. The statute's definition of a qualifying device leaves out swimming pools used as storage tanks, and a solar pool system uses the pool itself as storage, so whether the exclusion reaches pool panels is uncertain.
If the answer matters for your home, ask the Lee County or Charlotte County Property Appraiser how it treats the device you installed. Bring your invoice and permit record, which show what was installed and when.
Utility programs
Neither LCEC nor FPL offers a solar water heater rebate as of October 2026. Between them they serve nearly every home in our area: LCEC supplies Cape Coral, most of North Fort Myers, Lehigh Acres and Pine Island, while FPL serves most of Fort Myers, Bonita Springs, Estero, Punta Gorda and Port Charlotte.
Cape Coral homes buy power from LCEC, not FPL, and the LCEC energy-saving programs page lists no solar water heater or solar pool heater rebate. The payoff for an LCEC customer comes from the bill itself, since water heating is often 14 to 18% of a home's electric use.
The FPL savings programs page lists no rebate for solar water heating or pool heating either. Programs change, so check the utility's own page rather than a sales quote before you count on any rebate.
With no rebate to offset the price, the return comes from lower bills over the system's roughly 20 year life. The solar water heater cost guide breaks down 2026 installed prices.
Certification
Solar collectors and water heaters sold in Florida must meet the standards set by Florida Statute 377.705, the Solar Energy Standards Act. In practice that means a certified collector and, for water heating, ideally a certified complete system.
The Florida Solar Energy Center stopped testing solar thermal equipment and now accepts SRCC or IAPMO certification, while older FSEC certificates stay valid, according to the FSEC solar certification page. Any model can be looked up in the SRCC certified product directory.
Certification matters for paperwork too: 25D claims for 2025 installs required it, and an OG-100 or OG-300 number on your invoice proves what was installed if a buyer, insurer or appraiser asks. Our guide to how solar water heaters work explains what each rating covers.
Keep records
Keep five records from any solar heating job: an itemized invoice, the completion date, the certification numbers, the permit and final inspection, and the warranties with any HOA approval. Together they support a 25D claim for a 2025 install, the property tax exclusion, insurance claims and a future home sale.
Ask for the collectors, tank, controls and labor to be listed apart from any non-solar work, such as a heat pump or a roof repair. That shows exactly which costs are solar equipment.
The date the system was finished and working is the date the IRS used for 25D and the date an appraiser cares about. Make sure it appears on the final invoice.
Note the SRCC OG-100 number for each collector and the OG-300 number for a complete water heating system, along with the model names.
Your contractor pulls the permit; keep the permit number and the date of the final inspection, which Cape Coral calls the solar final. It proves the work was inspected to code.
Store manufacturer warranties, such as Heliocol's 12-year panel warranty or the 6-year Rheem Solaraide tank warranty, with the installer's workmanship warranty and the HOA letter. A buyer's inspector will ask for the same folder.
Summary
For a system installed in 2026, the Florida sales tax exemption and the Solar Rights Act apply to both solar water heaters and solar pool heaters, while the federal credit and utility rebates apply to neither.
| Incentive | Solar water heaters | Solar pool heaters | Source |
|---|---|---|---|
| Federal 25D credit, installed in 2026 | No, ended after December 31, 2025 | No, never eligible | IRS credit page |
| Federal 25D credit, completed 2022 to 2025 | Yes, 30% on Form 5695 | No, never eligible | Form 5695 instructions |
| Florida sales tax exemption | Yes | Yes | DOR TIP 19A01-09 |
| Property tax exclusion | Yes | Uncertain | Statute 193.624 |
| LCEC rebate | No | No | LCEC programs |
| FPL rebate | No | No | FPL programs |
| Solar Rights Act HOA protection | Yes | Yes | Statute 163.04 |
Questions
These are the incentive questions we hear most during 2026 estimates.
No. The IRS counts the expense when installation is complete, so a system finished on or after January 1, 2026 does not qualify for 25D, even if the deposit or full payment was made in 2025.
Yes, the Florida sales tax exemption covers solar pool heating equipment. The federal credit never did, and the property tax exclusion is uncertain for pool systems because the statute leaves out pools used as storage.
Many solar websites were written before the 2025 law and never updated. Ask any company quoting a credit for the IRS source and the installation date it applies to.
For many households, yes: water heating is often 14 to 18% of an electric bill, and solar typically covers 60 to 80% of it here. Payback takes longer than it did with the 30% credit, so a quality system's 20 year life matters more; our solar water heater installation service explains what that system includes.
Free estimate
Request a free estimate and we will price your solar water heater or pool system with no federal credit counted, the sales tax savings already built in and the certification numbers listed. You get the written quote the same day or the next.