Energy Efficiency Rebates for Tampa Bay Homeowners in 2026: PACE Financing, FPL Programs, and Federal Tax Credits

Tampa Bay homeowners in 2026 can still access meaningful energy efficiency incentives through PACE financing, utility rebate programs from Florida Power & Light and Tampa Electric, and for any qualifying work completed by December 31, 2025 federal tax credits under the Inflation Reduction Act. Understanding which programs apply to your property, your utility provider, and your specific renovation scope is the difference between leaving money on the table and building a genuinely cost-effective upgrade plan.

In this guide, you'll learn exactly how PACE financing works in Hillsborough and Pinellas Counties, what rebates FPL and TECO currently offer, the current status of the federal energy tax credit, which home improvements qualify for multiple incentive layers, and how to sequence your renovation to maximize total savings. Everything here is written for Tampa Bay homeowners South Tampa, St. Petersburg, Clearwater, Brandon, Riverview, Land O' Lakes, Wesley Chapel, and surrounding communities.

Tampa Bay homeowners can enjoy lower bills and greater comfort with energy-efficient upgrades like this home's HVAC system, qualifying for FPL rebates and federal tax credits in 2026.

What Energy Efficiency Rebates Are Available to Tampa Bay Homeowners in 2026?

Three distinct incentive tracks are available to Tampa Bay homeowners right now, and they serve different purposes.

Track 1: PACE Financing: Not a rebate, but a property-assessed financing mechanism that lets you fund qualifying upgrades with no upfront cost and repay through your annual property tax bill. Available in parts of Hillsborough and Pinellas Counties through state-approved providers.

Track 2: Utility Rebates: Direct rebates from your electric utility either Florida Power & Light (FPL) or Tampa Electric (TECO) applied as credits at installation. These are real cash incentives with specific equipment requirements and application windows.

Track 3: Federal Tax Credits: The Inflation Reduction Act's Section 25C Energy Efficient Home Improvement Credit and Section 25D Residential Clean Energy Credit expired for property placed in service after December 31, 2025. If you completed qualifying work in 2024 or 2025, you can still claim those credits on your tax return. For new work started in 2026, federal tax credits no longer apply under current law. Always verify the current status with a tax professional or at IRS.gov.

The most actionable path for most Tampa Bay homeowners in 2026 is combining PACE financing with utility rebates on the same project. We'll cover exactly how to do that below.

Florida PACE Financing: How It Works in Hillsborough and Pinellas Counties

Modern Hillsborough County home with impact windows, financed through the Florida PACE program, offering energy efficiency, storm protection, quieter indoors, and increased home value.

PACE stands for Property Assessed Clean Energy. The program was created to let homeowners finance qualifying energy efficiency and hurricane-hardening improvements without a traditional loan. The key mechanics:

• No credit score requirement. Eligibility is based on your property equity and your history of paying property taxes and mortgage on time not your FICO score.

• Repayment through your tax bill. The financed amount is added as a non-ad valorem assessment to your annual property tax bill at a fixed rate.

• No prepayment penalties. You can pay off the balance early without fees.

• No upfront cost. Your contractor is paid directly by the PACE administrator after you confirm the work is complete and satisfactory.

Important Geographic Note for Hillsborough County

As confirmed by Florida PACE Funding Agency, PACE financing in Hillsborough County currently applies to unincorporated areas only. Properties within the city limits of Tampa, Plant City, or Temple Terrace are not eligible at this time. If you are in unincorporated Hillsborough — including communities like Brandon, Riverview, Valrico, Lutz, Carrollwood, Westchase, Town 'N Country, Apollo Beach, Ruskin, and Sun City Center — check eligibility directly with a state-approved PACE provider.

As of July 1, 2024, Florida law requires each county to formally approve PACE financing before it can be offered to residents. Hillsborough County re-adopted PACE in 2025, with Home Run Financing returning as an approved provider. Pinellas County has its own PACE authorization framework — verify current provider availability for your specific address.

What Qualifies for PACE in Tampa Bay?

Qualifying improvements generally include:

• Impact-resistant windows and doors (hurricane hardening + energy efficiency)

• HVAC system upgrades

• Attic insulation

• Roofing upgrades including cool roofs

• Solar energy systems

• Energy-efficient water heaters

Verify the current eligible improvement list and your specific property's eligibility at floridapace.gov or directly with a state-approved PACE provider before contracting any work.

FPL Energy Efficiency Programs and Rebates

If your home is served by Florida Power & Light, you have access to direct rebate programs for several common upgrade categories. FPL administers these through its network of Participating Independent Contractors (PICs) approved contractors who can apply the rebate as an instant credit on your invoice.

Current FPL Rebate Programs

A/C Rebate: FPL offers a $200 instant rebate for qualifying new air conditioning system installations. Requirements include a SEER2 15.2 or higher unit with both indoor and outdoor units replaced, installed by an FPL-approved PIC.

Ceiling Insulation Rebate: FPL offers a $220 instant rebate for ceiling insulation upgrades where the home's current R-value is below R-8. Installation must be performed by an FPL-approved PIC with access to all attic spaces.

FPL also offers rebates for additional qualifying HVAC upgrades, energy-efficient appliances, and weatherization improvements. The Florida Public Service Commission recently approved enhanced programs including increased rebates for residential HVAC. Current amounts and full eligibility requirements are published at FPL.com/save/programs  verify before scheduling any work.

FPL Service Area Note: FPL serves portions of Pinellas County and parts of the greater Tampa Bay region. Check your utility bill to confirm your provider before applying.

Federal Energy Tax Credits: The Inflation Reduction Act in 2026

What Changed and Why It Matters

The One Big Beautiful Bill, signed into law on July 4, 2025, accelerated the expiration of two key residential energy tax credits under the Inflation Reduction Act. According to IRS FAQs on the One Big Beautiful Bill:

• Section 25C (Energy Efficient Home Improvement Credit): Not allowed for any property placed in service after December 31, 2025.

• Section 25D (Residential Clean Energy Credit): Not allowed for any expenditures made after December 31, 2025.

For Tampa Bay homeowners who completed qualifying upgrades impact windows, heat pumps, insulation, solar before December 31, 2025, those credits are still claimable on your 2025 federal tax return using IRS Form 5695. The annual caps were up to $1,200 for most efficiency improvements and up to $2,000 for qualifying heat pumps and heat pump water heaters.

What This Means for 2026 Projects

For improvements installed in 2026, the federal residential energy tax credit is no longer available under current law. This makes the combination of PACE financing and utility rebates from FPL or TECO the primary financial incentive stack for most Tampa Bay homeowners planning projects this year.

We always recommend consulting a licensed tax professional before making decisions based on federal credit eligibility, as tax law can change. Verify the current status at IRS.gov.

TECO Energy Programs for Hillsborough County Customers

Tampa Electric (TECO) is the primary utility for most of Hillsborough County, including Tampa, Brandon, Riverview, Valrico, Lutz, Land O' Lakes, Wesley Chapel, Apollo Beach, Ruskin, and Sun City Center. TECO runs its own residential rebate programs, separate from FPL.

Current TECO Rebate Programs

Heating & Cooling Rebate: TECO offers rebates for replacing an old ducted A/C system with a new, energy-efficient unit. According to TECO's Heating & Cooling program page, rebate amounts are tiered by efficiency:

• SEER2 15.20 or higher: $40 rebate

• SEER2 16.20 or higher (heat pumps): $550 rebate

Smart Thermostat Rebate: TECO offers a $22 rebate on qualifying ENERGY STAR smart thermostat models. Smart thermostats can save the average household approximately $180 per year.

Ceiling Insulation Rebate: TECO offers a pre-approval rebate for attic insulation upgrades. Proper insulation levels can reduce heating and cooling costs by approximately 15%.

Neighborhood Weatherization Program: Some TECO customers may qualify for free weatherization services including sealing gaps around doors, windows, and ductwork. Eligibility criteria apply.

Free Energy Audit: TECO offers both at-home and online energy audits at no cost, which can help identify which rebate-eligible upgrades will deliver the greatest return for your specific home. Schedule through tampaelectric.com/residential/saveenergy.

Rebate applications must be submitted within 90 days of installation. Call 813-275-3909 weekdays 8 a.m. to 5 p.m. for program questions. Current amounts and eligibility requirements are published at tampaelectric.com.

Which Home Improvements Qualify for Multiple Rebates?

Not every upgrade stacks across all three incentive tracks. The table below summarizes the general eligibility landscape for Tampa Bay homeowners in 2026. Use this as a planning reference always verify current eligibility, amounts, and provider requirements before scheduling work.

Improvement	PACE Eligible	FPL Rebate	Federal Tax Credit (2026)	Typical Tampa Cost Range
Impact Windows & Doors	Yes (check county/city limits)	Not typically listed	Expired (12/31/2025)	$800–$1,500/window installed
Attic Insulation	Yes	Yes ($220 ceiling insulation)	Expired (12/31/2025)	$1,500–$4,500 whole home
HVAC Upgrade (Heat Pump)	Yes	Yes ($200 A/C rebate; enhanced HVAC rebates)	Expired (12/31/2025)	$6,000–$14,000 installed
Solar Attic Fan	Yes	Check FPL.com	Expired (12/31/2025)	$400–$900 installed
Smart Thermostat	Not typically	Not listed (TECO: $22)	Expired (12/31/2025)	$150–$400 installed
Energy-Efficient Water Heater (Heat Pump)	Yes	Check FPL.com	Expired (12/31/2025)	$1,200–$3,500 installed
Re-Roof with Cool Roofing	Yes	Not typically	Expired (12/31/2025)	$12,000–$28,000

Key Notes on This Table:

• "PACE Eligible" reflects generally qualifying improvement categories; actual eligibility depends on your county, city limits, property equity, and the specific PACE provider's current guidelines.

• FPL rebate availability requires installation by a participating FPL-approved PIC. TECO operates separate programs see the TECO section above.

• For impact windows, see impact windows --> our guide to impact windows and wind mitigation in South Tampa for details on wind mitigation savings, which often compound the value of this upgrade beyond energy alone.

How to Stack Rebates with Your Renovation Budget

The most cost-effective approach for Tampa Bay homeowners in 2026 is to sequence and combine available incentives on a single project. Here's the framework we use at NovaCore Builders when advising clients.

Step 1: Identify Your Utility Provider

Your rebate eligibility depends entirely on whether you are an FPL customer or a TECO customer. Check your electric bill. If you are in unincorporated Hillsborough, you are almost certainly a TECO customer. Parts of Pinellas County fall under FPL service territory.

Step 2: Confirm PACE Eligibility for Your Specific Address

PACE financing is available in unincorporated Hillsborough County and portions of Pinellas County, but not within the city limits of Tampa. Confirm your address eligibility at floridapace.gov before including PACE in your project financing plan.

Step 3: Get a Utility Energy Audit First

Both TECO and FPL offer free home energy audits. Completing an audit before signing any contractor agreement gives you a documented baseline, identifies the highest-ROI upgrades for your specific home, and may help prioritize which utility rebate programs to target. TECO's free audit can qualify you for rebates.

Step 4: Layer Financing Strategically

A practical example: a Riverview homeowner replacing their HVAC system and adding attic insulation could use PACE financing to cover the full upfront cost, receive a TECO heating and cooling rebate applied directly to their contractor invoice, and potentially receive a TECO insulation rebate all on the same renovation. The PACE financing is repaid over time through property taxes, meaning zero out-of-pocket cost at installation.

For a broader picture of how targeted renovations can compound your home's value, see our analysis of renovations that add $100,000 to your home value energy efficiency upgrades consistently rank among the highest-return improvements in the Tampa Bay market.

Step 5: Document Everything

Keep all receipts, AHRI certification sheets, contractor invoices with rebate line items, and PACE assessment agreements. Even with the federal credits expired, documentation protects you if rebate applications are audited by the utility, and creates a complete value record if you sell your home.

Frequently Asked Questions

Q1: What energy efficiency rebates can Tampa homeowners use in 2026?

Tampa Bay homeowners in 2026 have two primary incentive tracks available: utility rebates from your electric provider (FPL or TECO) and PACE financing for qualifying improvements. FPL offers instant rebates for qualifying HVAC upgrades and ceiling insulation through its network of approved contractors, while TECO offers tiered heating and cooling rebates, a smart thermostat rebate, and attic insulation rebates. PACE financing available in unincorporated Hillsborough County and parts of Pinellas County lets you fund upgrades with no upfront cost and repay through your property tax bill. Federal residential energy tax credits under the Inflation Reduction Act expired for improvements placed in service after December 31, 2025. Verify current amounts and eligibility at FPL.com and tampaelectric.com.

Q2: Is PACE financing available in Hillsborough County?

PACE financing is available in Hillsborough County, but only in unincorporated areas  properties within the city limits of Tampa, Plant City, or Temple Terrace are not currently eligible. Hillsborough County re-adopted PACE in 2025, with approved providers operating in unincorporated communities including Brandon, Riverview, Valrico, Lutz, Carrollwood, Westchase, Town 'N Country, Apollo Beach, Ruskin, and Sun City Center. Repayment is structured as a fixed non-ad valorem assessment on your annual property tax bill, and approval is based on property equity and tax payment history rather than credit score. Confirm your address eligibility at floridapace.gov before proceeding.

Q3: How much can I save with the federal energy efficient home improvement tax credit?

For work completed before December 31, 2025, the Section 25C credit allowed homeowners to claim 30% of qualifying improvement costs up to $1,200 per year for most efficiency upgrades (windows, doors, insulation, non-heat-pump HVAC) and up to $2,000 per year for qualifying heat pumps and heat pump water heaters with no lifetime cap. However, the One Big Beautiful Bill, signed July 4, 2025, terminated this credit for any property placed in service after December 31, 2025. If you completed qualifying work in 2024 or 2025, file IRS Form 5695 with your tax return. For 2026 projects, the federal residential efficiency credit is no longer available under current law. Consult a tax professional and check IRS.gov for the latest guidance.

Q4: Does FPL pay for HVAC upgrades in Tampa Bay?

FPL offers a $200 instant rebate for qualifying new air conditioning system installations covering both indoor and outdoor units for systems rated SEER2 15.2 or higher, installed by an FPL-approved participating independent contractor. The rebate appears as a credit on your contractor's invoice at the time of installation, so you never have to file a separate claim. The Florida Public Service Commission recently approved enhanced FPL rebates for residential HVAC, so higher-efficiency systems may qualify for larger amounts. Current requirements and the list of approved contractors are published at FPL.com/save/programs. TECO customers should check tampaelectric.com for the separate TECO heating and cooling rebate program.

Q5: Can I combine PACE financing with the federal tax credit?

For work completed in 2026, no combination is possible because the federal residential energy tax credit (Section 25C) expired for property placed in service after December 31, 2025. For work completed in 2025 or earlier, the IRS noted that public utility subsidies must generally be subtracted from qualified costs when calculating the 25C credit, but state energy efficiency incentives, including PACE were generally not required to be subtracted. For your specific situation, always consult a licensed CPA or tax attorney and reference IRS Form 5695 instructions. Going forward in 2026, PACE financing can still be combined with utility rebates from FPL or TECO on the same project.

At NovaCore Builders, we work with Tampa Bay homeowners across Hillsborough and Pinellas Counties to plan and execute energy-efficient renovations that are properly documented for utility rebate programs and PACE financing. Owner Mohammad H Salehian and our licensed team have been completing Tampa Bay projects since 2020 under Florida Certified Building Contractor license CBC1269188.

If you're planning a HVAC replacement, impact window installation, re-roof, or whole-home energy upgrade and want a contractor who understands the rebate process from start to finish, call us at (813) 434-3834 or visit novacorebuilders.com to schedule a consultation. We serve homeowners throughout South Tampa, St. Petersburg, Clearwater, Brandon, Riverview, Wesley Chapel, Land O' Lakes, Apollo Beach, and the surrounding 50-mile Tampa Bay area.

Florida-licensed CBC1269188 · Serving Tampa Bay since 2020 · NovaCore Builders, 4207 S Dale Mabry Hwy, Tampa FL 33611 · (813) 434-3834