North Carolina Solar Incentive Programs

North Carolina is an excellent place to go solar, and the state ranks 5th in total installed capacity. North Carolina solar incentives are available on a state and federal level, as well as some energy efficiency loans. Between these, North Carolina residents are poised to save a lot of money by investing in solar. 

North Carolina’s solar mix has been largely utility-scale solar over the last decade, but residential has started to take a larger presence, thanks in part to a bill from 2017 that opened the door to leasing options.

The state was an early advocate of renewable power by signing Session Law 2007-397, which established a Renewable Energy and Energy Efficiency Portfolio Standard in 2007. That standard required investor-owned utilities to produce 12.5% of their power from renewable sources, and applied to municipal electric suppliers at a 10% rate.

As of 2024, the average electric rate in North Carolina was 14.19 cents/kWh and increasing at an average of 2.57% per year. The last two years have seen the largest year-over-year increases in average electric rates, allowing North Carolina homeowners to save even more. 

While there is only one major North Carolina solar incentive available, the state also has some local loan programs. For a full list and additional details, visit https://programs.dsireusa.org/system/program/nc. 

Federal Incentives

Federal Investment Tax Credit (ITC)

Residential solar and energy storage systems installed in North Carolina in 2025 are eligible for the Federal ITC, which provides up to 30% credit toward the total cost of a solar system. 

The credit is non-refundable, meaning it cannot exceed the amount you owe in tax and would not directly increase any refund you would receive. Excess credit can be carried forward and used in future years. 

Previous legislation had this credit available until 2032, but due to the passing of H.R. 1, “the big beautiful bill”, homeowners are only able to claim this credit if their system is installed before December 31st, 2025. Systems installed starting in 2026 will not be able to receive any federal solar tax credits. Learn more about the changes to the tax credit here.

Modified Accelerated Cost Recovery System (MACRS)

IRS section 179 depreciation allows certain qualified properties to be classified as 5-year properties, and tax credits are taken on the depreciation. This credit applies to commercial sites and certain investment properties. Specific information on what qualifies can be found on the IRS website.

State Incentives & Programs

Property Tax Abatement for Solar Electric Systems

North Carolina homeowners installing solar energy systems are exempt from property tax increases due to the increased home value that comes along with installing solar. Residential installations not used for income generation or tied to a business are exempt from 100% of the additional value. According to Zillow, the average home price in North Carolina is $337,457. Studies have shown that owned solar systems increase home values by 5-10%, so North Carolina homeowners could see increases of $16,872 – $33,745 and not need to pay extra property taxes on it. 

Duke Energy – Power Pair

Duke Energy, a large electric utility, offers an incentive program to homeowners installing solar and battery storage systems. The incentive can be a mixture of one-time incentives and ongoing monthly bill credits, depending on a customer’s enrollment in the battery control program. 

Qualified installations can receive $0.36/W-AC for solar installations up to 10 kW-AC and $400/kWh for battery installations up to 13.5 kWh. The AC designation is important because that means the size is based on the inverter rather than the total number of panels. If a homeowner installed 10 kW-AC, they could receive $3,600, and a 13.5 kWh battery could net the homeowner $5,400. 

If a homeowner decides to enroll in the battery control program, they can receive an additional $6.50/kW of continuous discharge capacity. That means a battery is a discharge rate of 5 kW could receive $32.50 as a monthly bill credit. The control program specifies that the utility can discharge the customer’s battery 30-36 times per year and will never discharge the unit below 20% capacity.

Union Power Cooperative Energy Efficient Loan Program

Homeowners who receive power from Union Power Cooperative are eligible to use ElecTel Cooperative Federal Credit Union. The credit union offers members loans up to $35,000 for improvements including windows and doors, electric heat pumps, furnaces, air conditioners, generators, solar projects, water heaters, insulation, and appliances.

Piedmont Electric Cooperative Home Upgrade Loans

Piedmont Electric Cooperative offers many programs for energy efficiency upgrades, and also partners with ElecTel Cooperative Federal Credit Union to offer home loans for energy efficiency upgrades. These include solar panels, EV charging stations, electric water heaters, insulation, and more. Approved members can borrow up to $30,000 and receive low interest rates.

Randolph Electric Membership Corporation Energy Efficiency Loans

Keeping with the theme from above, Randolph Electric also partners with ElecTel to offer its members access to energy efficiency loans up to $35,000 on solar and other energy efficiency upgrades.

Net Metering

Net metering is a program in which solar homeowners who generate more electricity than their home can use send the excess electricity back to the grid and are compensated for it. Some areas compensate at a one-to-one rate, meaning homeowners who send the utility $5 receive a $5 credit. 

Duke Energy changed its rules in October of 2023, adopting two options for homeowners. One option requires homeowners to utilize time-of-use rates, and the other uses traditional flat-rate billing. Excess generation is netted monthly, and customers who choose the flat rate option are also subject to additional fees on their bill. Excess generation credits cannot be applied to basic facility charges or demand charges, meaning the value homeowners get out of sending power to the grid is diminished.

The Future of Solar in North Carolina

Thanks to the Renewable Portfolio Standard, North Carolina will likely continue to be a top state for utility-scale solar capacity. Residentially, the market will likely slow due to the loss of the federal solar tax credit at the end of 2025. But spikes in energy rates over the last few years may signal further rate increases to come, so homeowners can still find a ton of value with an investment in solar energy.