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North Carolina Solar Tax Credits and Rebates
Knowing which tax credits and incentives you may qualify for can help you estimate the costs and potential savings of going solar more accurately. Many solar installers can also help you learn about and apply for these programs. Here are the key ones in North Carolina.
Duke Energy Solar Rebate Program
Credit type: Utility company credit
Though Duke Energy services multiple states, its Solar Rebate Program is offered only in North Carolina. This program benefits residential, commercial and nonprofit customers. It can be hard to enroll because there’s usually a waiting list, but the benefits are worth it if you’re willing to be patient. Here’s what’s offered:
- Residential customers receive 40 cents per watt. That’s an average of $2,000 in savings for a typical 5 kilowatt (kW) system.
- Commercial customers get 30 cents per watt, up to a rebate of $30,000.
- Nonprofit customers get 75 cents per watt, up to a rebate of $75,000.
Visit the Duke Energy website to find out if you’re eligible and start the application process.
Property Tax Abatement for Solar Electric Systems
Credit type: State tax exemption
North Carolina offers a 100% property tax exemption for residential solar installations. With it, your annual property tax obligation will not increase even though your property value will.
The property tax exemption only applies to active solar installations. Passive solar installations, such as greenhouses or sunrooms, are not exempt. The property tax exemption is 80% for nonresidential installations. Visit the North Carolina Department of Revenue website to see if you qualify.
Piedmont Electric Member Corporation Renewable and Solar Energy Loan Program
Credit type: Utility company loan
Members of the Piedmont Electric Membership Corporation (PEMC) may be eligible for a renewable energy loan to finance the purchase of a residential solar energy system. The loan also extends to members upgrading their homes to improve overall energy efficiency.
Here are a few things the loan covers:
- Addition of an energy-efficient electric heat pump
- Additional insulation
- Central A/C systems
- Photovoltaic panels
- Solar water heaters
- Window and door replacement
Eligible members may qualify for a loan of up to $10,000 with a 7-year term at a 5% interest rate. Contact PEMC for more information.
PSNC Energy Green Building Rate Discount
Credit type: Utility rate discount
PSNC offers a discount to customers whose building or residence meets specific energy efficiency criteria. To qualify, residential customers must produce a statement from a registered professional confirming their home uses no more energy than an EnergyStar-certified home. Visit the PSNC website for more information.
Net Metering in North Carolina
Net-metering programs allow you to “sell” excess energy your system produces back to the grid in exchange for lowering your future electric bills. North Carolina allows net metering for up to one megawatt (MW) of energy, which is enough for all residential solar power systems and many industrial and commercial systems.
Here are a few key things to know about net metering in North Carolina:
- Accumulated balances expire
- Leased solar systems can participate in net metering at a lower rate
- Surplus electricity is credited to your next bill
We recommend doing some research to ensure your system is optimally sized to make the most of net metering. Otherwise, you’ll generate electricity you can never subtract from your power bills.
Federal Solar Tax Credit
North Carolina residents can also take advantage of the Federal Solar Investment Tax Credit (ITC). This isn’t a tax refund but an actual reduction to your taxes equal to 30% of your solar installation costs. This rate is available from 2022 to 2032. It will reduce to 26% in 2033 and lower to 22% in 2034 before ending.
Only residents who purchase their systems in full or take out a loan are eligible to claim the ITC. Those who lease or enter into a power purchase agreement (PPA) are disqualified since they don’t own the system.
Top Providers in North Carolina
Finding the right solar installer for your project can be an intimidating process, so we have gathered a list of the top providers in North Carolina to make this easier. When rating and ranking these providers, we considered factors such as brand reputation, cost, financing options, and warranty options. We recommend getting a quote from at least three of the following brands before making a final decision.
| Company | Star Rating | Cost of an 8 kW System* | System Price Range (8 kW) | BBB Rating | Visit Site |
|---|---|---|---|---|---|
Our Top Pick
| 4.2 | $25,000–$30,000 | $25,000–$30,000 | A+ | GET QUOTE |
| 4.8 | $24,000–$36,000 | $24,000–$36,000 | A+ | GET QUOTE |
| 4.4 | $20,000–$22,500 | $20,000–$22,500 | A | GET QUOTE |
| 4.7 | $20,000–$25,000 | $2.55–$3.23 | A+ | GET QUOTE |
| 4.7 | $25,000–$27,500 | $25,000–$27,500 | A+ | GET QUOTE |
| 4.6 | $17,000–$22,000 | $20,000–$25,000 | A+ | READ REVIEW |
| Company | Star Rating | Cost of an 8 kW System* | System Price Range (8 kW) | BBB Rating | Visit Site |
|---|---|---|---|---|---|
Our Top Pick
| 4.2 | $25,000–$30,000 | $25,000–$30,000 | A+ | GET QUOTE |
| 4.8 | $24,000–$36,000 | $24,000–$36,000 | A+ | GET QUOTE |
| 4.4 | $20,000–$22,500 | $20,000–$22,500 | A | GET QUOTE |
| 4.7 | $20,000–$25,000 | $2.55–$3.23 | A+ | GET QUOTE |
| 4.7 | $25,000–$27,500 | $25,000–$27,500 | A+ | GET QUOTE |
| 4.6 | $17,000–$22,000 | $20,000–$25,000 | A+ | READ REVIEW |
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Frequently Asked Questions About North Carolina Solar Incentives
North Carolina is a great place for solar. Between the state’s high sun exposure, tax credits, net-metering program and utility incentives, homeowners will get a high return on their investment. Solar panel costs in the state have also fallen 50% over the last 10 years.
There is no statewide solar tax credit in North Carolina. However, there may be local tax credits available depending on where you live. North Carolina residents are also eligible for the 30% federal solar tax credit.
While there is no statewide solar rebate in North Carolina, you may still qualify for the federal tax credit and Duke Energy rebate. You can find more information about these programs online.
Bradford CuthrellAuthor
Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He’s surveyed thousands of pet owners and homeowners, listened to hundreds of customer service calls from various home service companies and spoken with dozens of industry experts to understand homeowners’ common pain points and needs.
Dana GetzEditor
Dana Getz is a seasoned editor with nearly a decade of experience writing and editing content. She has a background in journalism and worked as a fact-checker for prestigious magazines such as New York and Chicago. She holds a journalism and marketing degree from Northwestern University and has worked across numerous categories within the home services space.
