North Carolina is shining bright in the solar industry, ranking fifth nationwide in solar installations. This growth is fueled by state incentives designed to make solar panels more affordable. State officials have introduced several solar-focused incentives to boost solar power adoption and make installation more affordable.
Before you commit to a solar provider, get the details on how incentives can help trim your costs. We’ve spent more than 40 hours researching the best solar companies and digging into North Carolina’s solar incentives so you don’t have to. Read on to learn about these cost-saving programs.
Get Estimates from Solar Experts in Your Area
Totally free, no phone call required
Clicking “Get Your Estimate” submits your data to Home Service Quotes, which will process your data in accordance with the Home Service Quotes Privacy Policy.
What Are the Available North Carolina Solar Tax Credits and Rebates?
North Carolina offers fewer solar incentive programs, credits, and rebates than other nearby states. However, homeowners still have excellent options to make their solar conversion more affordable. Below is an overview of the state’s available solar incentives.
Duke Energy NC Solar Rebate Program
Duke Energy offers a rebate program of 40 cents per watt for solar systems up to 10 kW. Applications were accepted in January 2023 but have closed for the year. You can join the Duke Energy Solar Rebate waitlist and receive notifications if openings are available.
More resources: Visit the Duke Energy website for complete program details.
North Carolina offers additional rebates and credits for energy efficiency upgrades and other solar-related appliances. Homeowners should check the Database of State Incentives for Renewables and Efficiency (DSIRE) for additional programs in their area.
Property Tax Abatement for Solar Electric Systems
North Carolina residents qualify for a 100% property tax exemption for their solar systems. Adding a solar panel system will boost your home value. When your home value increases, your property taxes follow suit. With this property tax exemption, homeowners won’t incur added property taxes with their new system. You benefit from boosted property value without added taxation. No additional application is required for this program since it applies automatically after your purchase.
More resources: Check the North Carolina General Assembly website for full exemption details.
How Does the Federal Solar Tax Credit Work?
The federal solar tax credit provides North Carolina homeowners with significant savings on solar system costs. This incentive covers up to 30% of installation expenses for photovoltaic (PV) equipment and energy storage solutions. Eligible equipment includes rooftop solar panels, solar shingles, tiles, and standalone solar batteries.
To qualify, you must own your PV system outright. Financing options like solar loans or upfront payments can help you maintain eligibility. However, leasing a solar system means the installer retains ownership, making you ineligible for the credit.
Is Net Metering Available in North Carolina?
North Carolina’s net metering program helps homeowners earn additional savings for future power bills. You’ll earn credits from your utility company when you return excess energy to the power grid. Those energy credits accumulate on your account and apply to future energy use, helping to reduce your electric bill. Payout rates vary between utility companies. Participating utility companies include Blue Ridge Energy, Dominion Energy, and Duke Energy. Duke Energy offers programs under its two companies serving North Carolina: Duke Energy Progress and Duke Energy Carolina.
When we reviewed the program details, we learned that system ownership affects your qualification for the program. Customer-owned solar energy systems with up to 1,000-kW capacity can participate in the program. Unlike many other states, leasing solar customers can participate in net metering at a lower rate. Leasing customers are limited to 20 kW or 100% of estimated demand, whichever is lower. To sign up, homeowners complete an interconnection service application with their utility company. Once approved, your utility company will guide you through the next steps.
What’s the Most Popular Solar Incentive?
- We surveyed 1,000 recent solar buyers in early 2024 and learned that 64% used the federal solar tax credit, 32% enrolled in a net metering program, and 30% took advantage of a local rebate program.
How Much Do Solar Panel Installations Cost in North Carolina?
The average cost of a standard solar energy system for North Carolinians is approximately $11,444, according to EnergySage. This cost is lower than the $16,129 national average and does not include incentives. With the federal solar tax credit, you could save around $3,400 on your system.
When considering solar panel financing options, North Carolina homeowners have several options:
- Cash purchase: Paying for your system upfront provides the highest return on investment (ROI). While it requires a significant initial expense, it eliminates loan interest and maximizes long-term savings.
- Solar loans: Financing your system with a solar loan allows you to spread out costs while still qualifying for incentives. Monthly payments are often comparable to or lower than your current electricity bill.
- Solar leasing: Leasing allows you to install solar panels with little to no upfront cost. However, because you don’t own the system, you won’t qualify for incentives or experience the full financial benefits of solar.
- Power purchase agreements (PPAs): With a PPA, a third-party provider installs and maintains the system, and you pay for the electricity it generates at a set rate. While this can lower energy costs, you won’t own the system or qualify for tax credits.
Is Going Solar in North Carolina Worth It?
Solar power is worth it in North Carolina thanks to the state’s net metering program and property tax exemption. These incentives result in boosted home value and improved long-term savings for residents. North Carolina also benefits from 213 sunny days yearly, more than the national average of 206. These excellent weather conditions are ideal for maximum solar energy production and long-term savings.
The Process of Going Solar in North Carolina
Before exploring North Carolina’s solar incentives and financing options, it’s helpful to understand the solar installation process. Here’s what to expect:
- Consultation: The process starts with consultations with local solar companies. They’ll evaluate your home’s sun exposure and energy needs using online solar calculators before scheduling an in-person assessment. This step typically takes a few days and helps determine the size of your solar energy system.
- Design: Once the site survey is complete, your installer will design a solar system tailored to your roof space, energy consumption, and budget. You’ll receive options balancing cost and performance, including hardware recommendations for inverters and solar battery storage. Finalizing your design can take one to two weeks and involves discussions with your installer.
- Permitting and approvals: After approving the design, your solar provider will handle local zoning regulations, HOA requirements, and utility company guidelines before submitting the necessary permits. The approval process generally takes one to two months, depending on your municipality and energy provider.
- Installation: Once permits are approved, the installation process begins. Most solar panel installations are completed in a single day, though the entire process from consultation to installation typically spans one to three months.
- Final inspection and activation: Your installer will conduct a final system check to ensure proper function and provide a walkthrough of system operations. Some solar companies offer performance monitoring apps, while others require manual inverter checks. If you have battery storage, you’ll learn how the system transitions between grid power and stored off-grid energy during outages. Additionally, your energy bill should reflect net metering credits, reducing overall electricity costs and decreasing your solar system’s payback period.
Our Conclusion
North Carolina is ideal for solar energy thanks to the state’s increasing clean energy growth, sunny environment, and available solar incentives. Going solar will increase your home efficiency, lower your electric bills, and boost your home value.
We recommend comparing at least three top North Carolina solar companies and requesting quotes to find the best deal.
FAQs About Solar Tax Incentives in North Carolina
Does NC offer a state solar tax credit?
No, North Carolina does not offer a state solar tax credit. Its previous state tax credit ended in 2016. However, lawmakers are hoping to reinstate the incentive in the near future. Until then, North Carolina residents can apply for the federal tax credit for additional installation cost savings.
Can you get free solar panels in North Carolina?
No, you cannot get free solar panels in North Carolina. You must pay for your solar energy system in some form. However, North Carolina solar rebates and credits help lower installation costs, making it more affordable to go solar. Residents should also check for additional savings offered by their city, municipality, or local utility company.
Does North Carolina still offer loans for renewable energy upgrades?
No, North Carolina no longer offers renewable energy loans. Previously, the Financing Program for Renewable Energy and Energy Efficiency provided revolving loans with fixed interest rates to promote the conversion to renewable energy sources. Unfortunately, the program ended in 2022 with no indication of renewal.
What is the break-even point for solar panels?
Most homeowners achieve their break-even point for solar panels after six to 10 years. Also called the solar panel payback period, this time frame represents when solar panels pay for themselves in energy savings. Your payback period can vary based on your panel quality, local climate, and financing option.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
