FPL rates 2026: bill estimates and the AC paradox

Florida Power & Light is the largest US investor-owned utility by customer count, with about 5.7 million accounts. The per-kWh rate is moderate (about 15 cents) but the monthly bill runs high because Florida household consumption is roughly 25 percent above the US average, almost entirely from AC. This page covers RS-1 standard, RTR-1 time-of-day, storm cost recovery, and the realistic savings strategies given that FPL is a regulated monopoly with no supply shopping.

The FPL bill components, in detail

FPL residential bills break out into a base energy charge plus several cost-recovery clauses that adjust periodically based on actual costs incurred. The base energy charge is set in FPL's most recent base-rate case settlement, which covers a multi-year period. The fuel cost recovery clause adjusts monthly with the cost of natural gas (FPL's primary fuel) and other generation inputs; this is the most volatile component, sometimes adding or subtracting 2 to 4 cents per kWh from the bill in a given month. The capacity cost recovery clause recovers the cost of building or contracting generation capacity. The environmental cost recovery clause recovers the cost of meeting state and federal environmental regulations. The conservation cost recovery clause recovers the cost of FPL's energy efficiency programs.

The all-in result for a typical month in 2026 is about 15 cents per kWh, with summer months running slightly higher (15 to 17 cents) and winter months slightly lower (13 to 15 cents). The monthly customer charge ($9.86 currently) is fixed regardless of usage. Florida's state sales tax does not apply to residential electricity, so the total bill is the per-kWh times kWh plus the customer charge, with no additional state tax on top (unlike states such as New York that add city and state sales tax separately).

Why Florida bills run high despite moderate rates

The Florida household paradox is that the per-kWh rate is about 17 percent below the US average, but the monthly bill is about 5 percent above the US average. The reconciliation is usage. The US average household consumes about 886 kWh per month according to EIA. The Florida average is about 1,107 kWh per month, the second highest in the country after Louisiana. The driver is almost entirely air conditioning: Florida has the longest cooling season in the US and homes typically run AC nine months of the year, peaking at 14 to 18 hours per day in July and August.

A 2,500 square foot home with a 4-ton central AC running 14 hours a day in July uses about 1,500 kWh per month just for the AC, on top of the 400 to 500 kWh for everything else (refrigerator, pool pump, lighting, hot water, electronics). At the FPL rate of about 15 cents per kWh, that produces a $285 to $305 monthly bill. A 1,200 square foot apartment with a smaller AC system uses about 600 to 800 kWh per month in summer and produces a $90 to $120 bill. The variation across Florida households is enormous because the AC load varies enormously.

Practical FPL savings strategies for AC-dominated bills

For an AC-dominated bill, the savings opportunity concentrates on the AC system itself rather than on rate-plan optimisation (which is limited in a regulated state with no supply shopping). Five strategies that move the needle. First, raise the thermostat setpoint by 2 to 4 degrees during the day (78 to 80 instead of 74 to 76); each degree above 72 saves about 3 to 5 percent on cooling cost. Second, install a smart thermostat with occupancy and humidity sensing, which can save 10 to 20 percent of cooling cost through scheduling and adaptive control. Third, get a SEER2 rating audit of the existing AC system; replacing a 13 SEER unit from 2005 with a modern 18 SEER unit can cut cooling kWh by 35 to 40 percent. Fourth, add solar attic ventilation and consider radiant barrier in the attic; both reduce the heat load the AC has to fight.

Fifth, switch to RTR-1 time-of-day and shift the pool pump to overnight off-peak hours (a typical 1.5 hp variable-speed pump running 8 hours overnight at off-peak vs 8 hours during the day at peak saves roughly $15 per month in summer). Combined with shifting laundry and dishwasher to off-peak, RTR-1 saves about 8 to 15 percent for households that genuinely shift load. The savings are smaller than in California because the FPL TOU spread is narrower (about 2:1 vs California's 3:1 to 5:1), but they are real and stack with the AC efficiency improvements.

Storm cost recovery and the long tail of hurricane bills

Florida hurricane history continues to shape FPL bills. Hurricane Irma in 2017 caused about $1.3 billion in restoration cost; Hurricane Ian in 2022 added about $1.5 billion. The Florida Public Service Commission approves recovery of these costs through a separate surcharge that appears on the bill as "storm cost recovery" or similar. The surcharge level is set in a specific PSC docket after each major storm and runs for several years until the full cost is recovered.

For most FPL residential customers in 2026, storm cost recovery adds about $1 to $4 per month. The Hurricane Ian recovery is the dominant current contributor and will continue through approximately 2028. FPL also operates a storm reserve fund that absorbs the first portion of any new storm cost; the surcharge is only triggered when restoration costs exceed the reserve. After the 2023 storm season was relatively mild, the reserve has rebuilt somewhat, which should reduce the surcharge over the next few years if storm activity stays manageable.

Solar Together and net-metering in FPL territory

FPL operates two solar pathways for residential customers. Solar Together is the community solar program: customers subscribe to a share of FPL-built utility-scale solar (in MW or kW units) at a monthly fee, then receive a bill credit as the project produces electricity. Over the 25-year subscription term, the program is designed to roughly break even financially for the subscriber, with the value proposition being renewable-energy participation rather than savings. Solar Together is heavily oversubscribed; the waitlist as of 2026 stretches several years.

For rooftop solar, FPL offers net metering at the standard residential rate up to a system size cap of 2 MW. Florida's solar net-metering rules were the subject of contentious legislative debate in 2022; a proposed reduction to avoided-cost rates was vetoed and the existing retail-rate net metering remains in effect. For a typical 8 kW residential solar installation in FPL territory, payback runs about 8 to 11 years given the federal Investment Tax Credit and current net-metering math, longer than in some sunnier states because Florida's retail rate is lower. Solar plus battery is becoming more common given hurricane resilience considerations; the battery does not improve the financial payback materially under current rules but adds backup power during outages.

FPL vs Duke Energy Florida vs the municipal utilities

FPL serves most of east-coast Florida from Daytona south to Miami and Florida Keys, plus parts of the west coast and central Florida acquired through the 2021 merger with Gulf Power. Duke Energy Florida serves northern and central Florida including Orlando suburbs, Ocala and St. Petersburg. Tampa Electric (TECO) serves the Tampa Bay metro. JEA serves Jacksonville, OUC serves Orlando proper, and a network of municipal and cooperative utilities serves the rest.

FPL residential rates run roughly 5 to 10 percent below Duke Energy Florida rates and slightly above Tampa Electric rates. The municipal utilities (JEA, OUC, Tallahassee Utilities, Gainesville Regional Utilities) generally run at or below the IOU rates because they do not have to generate profits for shareholders. Customers cannot choose their utility (service territory is fixed by Florida PSC), so the comparison is mostly informational; if you are moving within Florida, the utility serving your destination address may produce a noticeably different bill at the same usage level.

Sources and further reading

• FPL rate schedules
• Florida Public Service Commission (rate case dockets, storm cost recovery)
• FPL energy efficiency programs
• FPL Solar Together and net metering
• Florida state electricity cost page
• Cost to run an air conditioner per hour
• Duke Energy rates (multi-state including Florida)
• How we source these numbers

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