Florida Electricity Rates: What You Pay

Florida has some of the cheapest electricity rates in the country. It also has some of the highest electric bills. If that sounds like a contradiction, you're not alone — millions of Floridians are caught in exactly this paradox every month.

The average Florida household pays around $157 per month for electricity, well above the national average of $139. Yet the per-kilowatt-hour rate hovers between 15.5 and 16 cents, roughly 14 to 22 percent below what the rest of the country pays. The gap between those two numbers comes down to one thing: Floridians use a staggering amount of electricity. About 65 percent more than the national average, in fact.

This guide breaks down exactly what you're paying, why your bill is so high despite "cheap" rates, what rate increases are headed your way through 2029, and — most importantly — what you can do about it. Whether you're a longtime resident watching your bill creep upward or a newcomer wondering why your first summer electric bill hit $300, you will find concrete answers here.

What Florida Electricity Actually Costs

Let's start with the numbers that matter.

Per-kWh Rates

Florida's average residential electricity rate sits around 15.5 to 16 cents per kilowatt-hour in 2026. That places the state comfortably below the national average of roughly 18 to 19 cents per kWh. Compared to states like California (30+ cents) or Connecticut (28+ cents), Florida looks like a bargain.

But rates only tell part of the story.

Monthly Bills

The average Florida household consumes approximately 1,096 kWh per month — compared to a national average closer to 900 kWh. That extra consumption adds up fast:

| Metric | Florida | National Average | |---|---|---| | Average rate (cents/kWh) | ~15.5-16 | ~18-19 | | Average monthly usage | ~1,096 kWh | ~900 kWh | | Average monthly bill | ~$157 | ~$139 | | Annual electricity cost | ~$1,884 | ~$1,668 |

A typical Florida Power & Light (FPL) customer using 1,000 kWh per month pays about $136.64. That is the state's largest utility quoting you its own numbers. Push past 1,000 kWh — and most Florida households do — and you're looking at $150, $175, or more.

The Real Cost Comparison

When people move to Florida from a state with no income tax and relatively low property taxes, they sometimes assume the cost of living is lower across the board. Electricity is where that assumption falls apart. You might pay less per unit of power, but you will use far more of it. The net result is a higher bill than you had up north.

How Florida's Regulated Market Works

Understanding your bill starts with understanding who controls it — and in Florida, that is not you.

No Retail Choice

Florida operates a regulated electricity monopoly. Unlike Texas or parts of the Northeast, you cannot shop around for an electricity provider. Whichever utility serves your area is your only option. Period.

The major players are:

| Utility | Customers Served | Approximate Coverage | |---|---|---| | Florida Power & Light (FPL) | ~12 million people (~5.8M accounts) | East coast, South Florida, Treasure Coast | | Duke Energy Florida | ~1.9 million people | Tampa Bay, Central Florida, parts of North Florida | | Tampa Electric (TECO) | ~800,000 people | Tampa metro area | | JEA (municipal) | ~500,000 people | Jacksonville area | | Various co-ops and municipals | ~1.5 million people | Rural and smaller metro areas |

FPL is the largest electric utility in the United States by customer count. If you live in Florida, there's roughly a 50 percent chance FPL is your provider.

The Florida Public Service Commission

The Florida Public Service Commission (PSC) is the state agency that oversees electric utilities. The PSC approves rate changes, reviews utility investment plans, and is supposed to protect consumers from unreasonable charges.

In practice, the PSC has approved virtually every major rate increase that FPL has requested in recent years. Consumer advocates have raised concerns about the close relationship between the commission and the utilities it regulates. The five PSC commissioners are appointed by the governor, not elected by the public.

What this means for you: your electricity rate is set through a political and regulatory process, not a competitive market. If you want lower rates, your leverage comes from reducing consumption, generating your own power, or engaging in the regulatory process — not from switching providers.

Generation Mix

Florida generates roughly 70 percent of its electricity from natural gas. That heavy reliance on a single fuel means your rates are closely tied to the natural gas market. When gas prices spike — as they did in 2022 — your electric bill follows.

The remaining generation comes from a mix of solar, nuclear (from FPL's two nuclear plants), coal (declining), and a small amount of other sources. Florida's solar capacity has grown rapidly, but natural gas still dominates the generation mix by a wide margin.

What's Actually on Your Bill

If you have not taken a close look at your electric bill lately, now is the time. For a detailed walkthrough of every line item, check out our guide on how to read your electric bill and spot overcharges. Here is a Florida-specific breakdown.

Base Charge

FPL increased its base charge by 20 percent to $30 per month in 2026. This is a fixed fee you pay regardless of how much electricity you use. Even if you went on vacation for the entire month and used zero kilowatt-hours, you would still owe $30.

Duke Energy Florida and TECO have similar base charges, though the exact amounts differ. The base charge covers the utility's fixed costs — grid maintenance, meter reading, billing, and a portion of their infrastructure investments.

Energy Charge

This is the per-kWh rate multiplied by your usage. It is the largest portion of most bills. For FPL customers, the energy charge includes both a base energy rate and a fuel cost recovery charge, which fluctuates with natural gas prices.

Fuel Cost Recovery

Because Florida generates so much electricity from natural gas, fuel cost recovery is a significant line item. This charge passes the utility's fuel costs directly through to you. When natural gas prices rise, this charge rises. The PSC reviews and adjusts fuel cost recovery charges periodically.

Storm Surcharges

This is where Florida bills get uniquely painful. After major hurricanes, utilities are allowed to add surcharges to recover their restoration costs. In 2025, many FPL customers were paying approximately $12 per month in hurricane recovery surcharges. These surcharges can persist for years after a storm.

Florida has been hit by several major hurricanes in recent years, and each one adds a new layer of cost to your bill. The utility argues — and the PSC agrees — that hardening the grid and restoring service after storms is a legitimate cost of doing business. The result is that you're paying for past storms, current infrastructure, and future resilience all at once.

Grid Hardening and Infrastructure

FPL and other Florida utilities have invested billions in burying power lines, reinforcing poles, and upgrading substations. These "grid hardening" costs are passed directly to ratepayers. The investments do reduce outage times after storms, but they come at a real cost on your monthly bill.

A Typical FPL Bill Breakdown (1,000 kWh)

| Line Item | Approximate Cost | |---|---| | Base charge | $30.00 | | Energy charge (per kWh) | ~$75-80 | | Fuel cost recovery | ~$15-18 | | Storm surcharge | ~$8-12 | | Taxes and fees | ~$6-8 | | Total | ~$136-148 |

Your actual bill will vary based on your usage, specific rate schedule, and any applicable surcharges. But this gives you a realistic picture of where your money goes.

Why Your Bill Is Higher Than You Think

Even if you understand the rate structure, Florida bills have a way of surprising people. Here is why.

Air Conditioning Dominates Everything

AC accounts for 40 to 50 percent of the average Florida electric bill. In the peak of summer — June through September — that share can climb even higher. Florida's combination of intense heat and crushing humidity means your AC runs harder and longer than in most other states.

It is not just the temperature. A 95-degree day in Phoenix with 10 percent humidity is far less demanding on your AC than a 92-degree day in Miami with 75 percent humidity. Your air conditioner has to remove moisture from the air as well as cool it, and dehumidification is energy-intensive work.

If your home has poor insulation, single-pane windows, or an aging AC system, you're compounding the problem. A 15-year-old AC unit running in a poorly insulated Florida home can easily consume twice the electricity of a modern, properly installed system in a well-insulated house.

For ways to address this, see our guides on attic insulation and choosing the best insulation types.

Water Heating

Florida's warm climate helps with water heating (incoming water temperatures are higher than in northern states), but electric resistance water heaters are still common and still draw significant power. A heat pump water heater can cut water heating costs by 50 to 70 percent — see our heat pump water heater guide for the best options.

Pool Pumps

Florida has more residential swimming pools than any other state. A standard pool pump running 8 to 12 hours per day can add $50 to $100 per month to your electric bill. Variable-speed pool pumps cut that cost dramatically but require an upfront investment.

Rapid Population Growth

Florida's population has been growing rapidly, adding strain to the grid and driving infrastructure investment that gets passed through to ratepayers. More people means more demand, more substations, more transmission lines, and more cost — all of which show up on your bill.

The "No Income Tax" Trade-Off

Florida has no state income tax, which is a major draw for new residents. But the state still needs revenue, and some of that comes through utility-related fees, franchise fees, and taxes that appear on your electric bill. It is not a dollar-for-dollar trade, but it is worth understanding that the overall cost picture is more nuanced than "no income tax means lower costs."

The Big Rate Increases Coming (2026-2029)

If you think your bill is high now, brace yourself.

The $7 Billion FPL Rate Settlement

In what consumer advocates have called the largest rate increase in Florida history, the PSC approved a settlement allowing FPL to raise rates by a cumulative $7 billion between 2026 and 2029. This settlement covers:

• Grid hardening and storm resilience investments
• New natural gas generation capacity
• Solar energy expansion
• General infrastructure upgrades
• Return on equity for FPL's parent company, NextEra Energy

The base charge increase to $30 per month in 2026 is just the beginning. Additional rate adjustments are scheduled throughout the settlement period.

What This Means for Your Bill

For a typical FPL customer using 1,000 kWh per month, the rate increases are expected to add roughly $15 to $25 per month to the bill by 2029 compared to 2025 levels. For households using 1,500 kWh or more — which is common in Florida — the impact will be even larger.

| Year | Estimated Monthly Bill (1,000 kWh, FPL) | |---|---| | 2025 | ~$128-132 | | 2026 | ~$136-148 | | 2027 | ~$142-155 | | 2028 | ~$148-162 | | 2029 | ~$155-170 |

These are estimates based on the approved settlement and projected fuel costs. Actual bills will depend on fuel cost fluctuations, additional storm surcharges, and your specific usage patterns.

Hurricane Cost Exposure

Every hurricane season brings risk not just to your home but to your electric bill. Major storms can trigger new surcharges that last for years. With climate change driving more intense storms and Florida's extensive coastline, this is an ongoing and likely growing cost.

Duke Energy and Other Utilities

FPL is not the only Florida utility raising rates. Duke Energy Florida, TECO, and other providers have their own rate cases and infrastructure investments. While the specifics differ, the trend is the same across the state: rates are going up, and they're not coming back down.

Solar in the Sunshine State

Here is the good news: Florida has one of the best solar resources in the country. The irony of the "Sunshine State" lagging behind cloudier states in rooftop solar adoption is finally starting to change.

The Solar Resource

Florida averages 5.0 to 5.5 peak sun hours per day, making it an excellent location for rooftop solar. A typical 8 kW residential solar system in Florida can generate 11,000 to 13,000 kWh per year — enough to offset most or all of a typical household's consumption.

For a comprehensive overview of panel options, see our solar panel buyer's guide.

Net Metering

Florida currently maintains 1:1 net metering, which means the excess electricity your solar panels send to the grid is credited at the full retail rate. This is the most favorable net metering policy possible and makes the economics of rooftop solar significantly better.

However, utilities have pushed to weaken net metering in Florida (and have succeeded in other states like California). There's no guarantee the current policy will last forever. If you're considering solar, the current net metering rules make the math work well — but waiting could mean worse terms.

Our guide on how net metering works and how to maximize it covers the details.

Financial Incentives

| Incentive | Value | Details | |---|---|---| | Federal Investment Tax Credit (ITC) | 30% of system cost | Available through at least 2032; steps down after | | Florida sales tax exemption | ~6-7.5% savings | Solar equipment exempt from state and local sales tax | | Florida property tax exemption | 100% of added value | Solar does not increase your property tax assessment | | Net metering | Full retail credit | 1:1 credit for excess generation |

For an 8 kW system costing $24,000 before incentives, the federal ITC alone saves you $7,200. The sales tax exemption saves another $1,440 to $1,800. Your net cost lands around $15,000 to $16,000, and the system generates $1,800 to $2,200 worth of electricity per year at current rates. That is a payback period of roughly 7 to 9 years — and it gets shorter as rates increase.

For more on financing your system, see solar financing: cash vs. lease vs. loan.

The Amendment 1 Story

In 2016, Florida utilities — led by FPL's parent company — spent $26 million to promote Amendment 1, a ballot measure designed to look like it supported solar energy. In reality, the amendment would have enshrined the utilities' monopoly power and made it harder to expand rooftop solar.

Consumer groups, environmental organizations, and even some conservative groups united against it. The amendment failed, but it revealed just how far utilities would go to protect their business model from distributed solar. It is worth remembering this history as you navigate the solar decision.

Solar + Battery Storage

Given Florida's hurricane exposure, pairing solar with battery storage is increasingly popular. A battery backup keeps your lights on during grid outages — which happen frequently during hurricane season. It also allows you to store excess solar generation for use during peak evening hours.

See our home battery storage guide and our comparison of generators vs. battery backup systems for help deciding what's right for your situation.

How to Lower Your Florida Electric Bill

With rates rising and consumption already high, here are the most impactful strategies for bringing your bill under control. For the full playbook, see our guide on how to cut your electric bill in half.

1. Get a Handle on Your AC

Since AC accounts for 40 to 50 percent of your bill, this is where the biggest savings live.

• Upgrade your thermostat. A smart thermostat like the Ecobee or Nest can save $50 to $150 per year by optimizing your cooling schedule. See our smart thermostat guide for the best options.
• Set it to 78 degrees when you're home. Every degree below 78 adds roughly 3 to 4 percent to your cooling costs.
• Maintain your system. Change filters monthly during summer. Have your system serviced annually. A well-maintained AC runs more efficiently.
• Seal your ducts. Leaky ductwork in a hot Florida attic can waste 20 to 30 percent of your cooled air before it reaches your living space.
• Insulate your attic. Florida code minimum is R-30, but R-38 or higher pays for itself in reduced cooling costs. Our attic insulation guide walks you through the options.

2. Enroll in FPL Programs

FPL offers several programs that can save you real money:

• FPL On Call: This demand response program allows FPL to briefly cycle your AC during peak demand periods in exchange for a credit. Participants save approximately $137 per year. You will rarely notice the cycling — your home stays within 2 to 3 degrees of your set temperature.
• Budget Billing: This does not save money overall, but it smooths your payments across the year so you're not hit with a $300 bill in August and a $90 bill in January.
• Energy Analyzer: FPL's online tool breaks down your usage by category and offers personalized recommendations.

Duke Energy and TECO offer similar programs. Check your utility's website for details.

3. Conduct a Home Energy Audit

You cannot fix what you cannot see. A home energy audit identifies the specific areas where your home is wasting energy. You can do it yourself or hire a professional. Common findings in Florida homes include:

• Insufficient attic insulation
• Air leaks around windows, doors, and recessed lighting
• Aging, inefficient AC systems
• Ductwork leaks in unconditioned spaces
• Old, inefficient water heaters

4. Monitor Your Usage in Real Time

A home energy monitor gives you visibility into exactly where your electricity is going, hour by hour. Many Florida homeowners are shocked to discover that a single appliance — an old refrigerator in the garage, a pool pump, or an inefficient water heater — is responsible for $30 to $50 per month. See our home energy monitor guide for recommendations.

5. Upgrade to a Heat Pump Water Heater

If you have an electric resistance water heater, replacing it with a heat pump water heater is one of the best investments you can make. In Florida's warm climate, heat pump water heaters perform exceptionally well and can cut water heating costs by 50 to 70 percent. With the federal tax credits available, the payback period is often under 3 years. Our buyer's guide covers the top models.

6. Go Solar

With excellent sun, 1:1 net metering, a 30 percent federal tax credit, and state tax exemptions, Florida is one of the best states for rooftop solar — despite what the utilities might prefer you to believe. With rates rising through 2029 and beyond, locking in your own generation makes more financial sense every year.

7. Address Pool Pump Efficiency

If you have a pool, switching from a single-speed to a variable-speed pump can save $50 to $75 per month. Many newer variable-speed pumps also qualify for utility rebates.

8. Window Films and Treatments

Florida's intense sun heats your home through windows throughout the day. Low-E window films can reduce solar heat gain by 40 to 70 percent and cost a fraction of replacing windows. Exterior shading — awnings, shade trees, or solar screens — also makes a meaningful difference.

Frequently Asked Questions

Why is my Florida electric bill so high when rates are below the national average?

Florida's rates are low, but consumption is extremely high — approximately 65 percent above the national average. The primary driver is air conditioning, which runs 8 to 10 months per year and accounts for 40 to 50 percent of the typical bill. High consumption multiplied by even a below-average rate produces an above-average bill.

Can I choose my electricity provider in Florida?

No. Florida is a regulated monopoly state. Your electricity provider is determined by your geographic location, and you cannot switch to a competitor. The Florida Public Service Commission oversees rates and service, but there is no retail electricity market.

How much can solar panels save me in Florida?

A properly sized solar system in Florida can offset 80 to 100 percent of your electricity usage. At current rates, that translates to $1,800 to $2,600 per year in savings for a typical household. After the federal tax credit and state exemptions, most systems pay for themselves in 7 to 9 years, with 25+ years of production remaining. With rates set to increase through 2029, the savings grow over time.

What happens to my solar panels during a hurricane?

Modern solar panels are rated to withstand winds of 140+ mph, and proper installation on a structurally sound roof provides excellent storm resilience. However, solar panels alone will not power your home during a grid outage — you need a battery backup system for that. See our battery storage guide for details.

Will Florida electricity rates keep going up?

All signs point to yes. The approved FPL rate settlement runs through 2029 with scheduled increases. Ongoing grid hardening, hurricane recovery costs, infrastructure investment to support population growth, and fuel cost fluctuations all put upward pressure on rates. While short-term fuel cost drops can provide temporary relief, the long-term trend is clearly upward.

Is FPL's On Call program worth it?

For most households, yes. The program saves approximately $137 per year in exchange for allowing FPL to briefly cycle your AC compressor during peak demand events. The cycling is subtle — your home stays within a few degrees of your thermostat setting — and most participants report not noticing any difference in comfort. There is no cost to enroll.

What is the best time of year to use electricity in Florida?

Your cheapest months will be March through May and October through November, when you may not need AC or heating. December through February can also be relatively low if your home is well-insulated, though heating costs may apply during cold snaps. June through September is the expensive season, with July and August typically being the highest-bill months.

Your Florida Energy Action Plan

Knowing the problem is one thing. Doing something about it is another. Here is a concrete, prioritized action plan for Florida homeowners.

This week:

• Review your latest electric bill line by line. Identify every charge and surcharge. Use our bill reading guide to understand what you're looking at.
• Check your thermostat setting. If it is below 78 degrees, bump it up and give yourself a few days to adjust.
• Enroll in your utility's demand response program (FPL On Call or equivalent). It costs nothing and saves $100+ per year.

This month:

• Conduct a DIY home energy audit. Walk through your home with a critical eye for air leaks, insulation gaps, and inefficient appliances.
• Install a smart thermostat if you do not already have one.
• Consider a home energy monitor to identify your biggest electricity consumers.

This quarter:

• Get quotes for attic insulation if yours is below R-30. Check our attic insulation guide for what to look for.
• If your water heater is more than 8 years old or is an electric resistance model, get quotes for a heat pump water heater.
• Request solar quotes from at least three installers. Compare using our solar panel buyer's guide and financing guide.

This year:

• Make a decision on solar. With rates rising through 2029 and net metering still at 1:1, the financial case gets stronger each month you wait — but so does the risk that net metering policy changes.
• Address any major efficiency issues identified in your audit (duct sealing, window treatments, AC replacement if your system is 15+ years old).
• If you go solar, evaluate whether battery storage makes sense for hurricane resilience.

Florida's electricity landscape is not going to get cheaper. The utilities have secured rate increases through the end of the decade, hurricane costs are an ongoing reality, and population growth continues to strain infrastructure. But you are not powerless. Between efficiency improvements, smart programs, and solar, Florida homeowners have more tools than ever to take control of their energy costs. The best time to start was last year. The second best time is today.