A change in how Duke Energy Florida plans to handle battery-related tax credits could spare customers from a scheduled base-rate increase in 2027.
Rather than returning those credits over 15 years, the utility said it will pass them through in a single year, speeding up $50 million in customer savings.
What happened?
Duke Energy said the accounting shift would eliminate the 2% base-rate increase that had been included in its multiyear 2025-2027 rate agreement.
The credits come from the Powerline Battery Energy Storage System in Citrus County, a project Duke Energy said will become its seventh battery site when it is finished next year.
The company said that returning those tax benefits on a faster schedule means the savings will appear on customer bills much sooner.
The move also fits into a broader storage push. Duke Energy Florida said it plans to add 1.4 gigawatts of battery capacity over the next decade, generating more than $500 million in investment tax credits that would be returned directly to customers.
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The company is also expanding its solar network, with a goal of adding 12 more solar sites by the end of 2028.
Why does it matter?
Avoiding the planned 2% base-rate increase would keep 2027 bills lower than previously expected. Energy bills also tend to climb during hot Florida summers.
Duke Energy also said batteries can improve reliability by storing electricity during lower-demand periods and sending it back out later when usage peaks.
The utility said its planned solar additions could save customers about $3 billion in fuel costs over the life of those sites.
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It also said that in 2025, it returned roughly $65 million in solar production tax credits, reducing residential rates by at least $2.50 per 1,000 kilowatt-hours used.
What's being done?
Duke Energy Florida said batteries are a key part of its "all-of-the-above" generation strategy because they allow renewable power to be saved for use after sunset or during cloudy stretches. Instead of going unused, that stored solar energy can be dispatched later.
Expanding the battery fleet is central to that approach. Duke Energy Florida said additional storage sites would make the state's growing solar system more dependable while also producing tax credits that can help offset costs.
The company is also pointing customers to programs intended to lower usage or ease bill pressure. Those include free home energy assessments and flexible payment plans, which may help households handle seasonal spikes in costs.
"Our customers count on us to continually look for ways to keep our costs in check and help ease their overall financial burden — especially as prices continue to rise in seemingly every aspect of our daily lives. By finding a way to return these tax credits faster, we're able to put millions of dollars to work for our customers sooner, while also building the modern energy infrastructure Florida's rapidly growing communities need," said Melissa Seixas, Duke Energy Florida state president.
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