On April 18, Tampa Electric, a TECO Energy (NYSE: TE) subsidiary, unveiled $1.5 million in annual solar subsidies over the next five years for homeowners and businesses.

This comes as utilities in Florida, like Florida Light & Power, have come under fire for supporting legislation that gives them vast control over the state’s solar industry and would support large-scale development with little support for small scale development.

Tampa Electric is offering the rebates even though Florida does not have a renewable portfolio standard at this point, said Shelly Aubuchon, Tampa Electric’s renewable energy program manager.

“We are not able to recover the cost for solar given the current regulations,” she said. Still, the company is encouraging its customers to go solar with the new program.

Under Tampa Electric’s renewable rebate program, homeowners or business owners can qualify for up to $20,000 for installing a photovoltaic array or up to $1,000 for installing a solar water-heating system. The photovoltaic rebates are offered at $2 a watt up to 10 kilowatts (10,000 watts).

“However, a customer can install more than that,” said Aubuchon. The rebates are offered on a first-come, first-served basis.

To apply, customers must first reserve a rebate. Then, a Tampa Electric representative will schedule a free energy audit of the home or business. After receiving the audit, qualifying customers can install the solar system and then submit for the rebate, according to Tampa Electric.

Of the annual rebates, $1 million is allocated to photovoltaic rebates, and $143,000 is allocated to solar water heater rebates on an annual basis, according to Aubuchon. Of the rest, $25,000 will support solar hot-water installations for five low-income residences; $150,000 will support a 10-kilowatt photovoltaic array at a local school. The remainder will go to administrative expenses and education and outreach efforts, she said.

Customers receiving the rebates are also eligible for Tampa Electric’s net metering program, Aubuchon said.

“Customers receive full retail value for any energy that is exported to the grid. It’s a kWh [i.e., kilowatt hour] for kWh credit, provided month to month,” she said. “If there is a balance of excess energy in their account at the end of the year, the customer receives our average annual avoided cost for that energy. It is free for customers to participate in net metering.”

Pictured: An array at Middleton High School, courtesy of Tampa Electric.