North Carolina Solar Incentives at a Glance
Avg Cost per Watt
$2.62
6 kW System Cost
$15,720
Avg Electricity Rate
$0.13/kWh
Payback Period
10-13 years
25-Year Savings
$24,000-$38,000
Total Installations
290,000+
| State Tax Credit | No state tax credit (expired 2015) |
| Net Metering | Full retail rate (under 1 MW) |
| Property Tax Exemption | Yes |
| Sales Tax Exemption | Yes |
If you are considering going solar in North Carolina, understanding the full range of available incentives is essential to maximizing your return on investment. This guide covers every North Carolina solar incentive available in 2026 -- from state tax credits and utility rebates to net metering policies and tax exemptions -- so you can make an informed decision before signing a contract.
Federal Tax Credit No Longer Available
The federal residential solar tax credit (ITC) under Section 25D expired on December 31, 2025. It is no longer available for new residential solar installations in 2026. This guide focuses exclusively on North Carolina state and local incentives that are still available to help reduce your solar costs.
North Carolina State Tax Credits and Rebates
North Carolina's 35% Renewable Energy Tax Credit expired at the end of 2015 and has not been renewed. However, the state's other incentives (net metering, property tax exemption, sales tax exemption) still provide meaningful savings.
Net Metering in North Carolina
North Carolina Net Metering Policy: Full retail rate (under 1 MW)
North Carolina requires investor-owned utilities (Duke Energy Carolinas and Duke Energy Progress) to offer net metering at the full retail rate for residential systems. Excess generation credits roll over monthly and are trued up annually, with any remaining credits paid at the utility's avoided cost rate. EMCs (electric membership cooperatives) and municipal utilities have varying policies.
Net metering is one of the most important factors in your solar ROI. It determines how much you are credited for excess energy your panels send back to the grid. In North Carolina, the net metering landscape directly affects your payback period and 25-year savings projections.
Property and Sales Tax Exemptions
Property Tax Exemption
Yes
North Carolina General Statute 105-275(45) provides an 80% property tax exemption for the appraised value of solar energy electric systems. This means only 20% of the added value from your solar system is subject to property taxes.
Sales Tax Exemption
Yes
North Carolina exempts solar energy equipment from the state's 4.75% sales tax through General Statute 105-164.13(44c). This exemption applies to all components of a solar photovoltaic system, including panels, inverters, racking, and wiring.
Tax exemptions reduce the total cost of going solar and provide ongoing savings. A property tax exemption means you add home value without increasing your tax bill. A sales tax exemption reduces the upfront purchase price. Together, these exemptions can save North Carolina homeowners hundreds to thousands of dollars.
Utility Rebate Programs in North Carolina
Beyond state-level incentives, many North Carolina utilities offer their own solar rebate and incentive programs. These can significantly reduce your out-of-pocket costs or provide ongoing production-based income.
Duke Energy NC Solar Rebate
Duke Energy Carolinas and Duke Energy Progress have periodically offered solar rebate programs for residential customers. These programs tend to have limited funding and fill quickly. Check Duke Energy's website for current program availability.
Duke Energy Community Solar
Duke Energy's shared solar programs allow customers without suitable roofs to subscribe to community solar projects and receive bill credits.
NC GreenPower
While not a direct rebate, NC GreenPower is a nonprofit that supports renewable energy generation in North Carolina. Participating utilities may offer solar-related programs through this initiative.
North Carolina ranks #4 nationally in solar capacity, driven primarily by utility-scale solar farms. The state's Renewable Energy and Energy Efficiency Portfolio Standard (REPS) requires investor-owned utilities to generate 12.5% of retail sales from renewable sources by 2021, with ongoing compliance requirements. The state has a growing community solar market and strong solar workforce.
Solar Cost and Savings in North Carolina
| Metric | North Carolina Average |
|---|---|
| Cost per watt (before incentives) | $2.62 |
| 6 kW system cost (before incentives) | $15,720 |
| Average electricity rate | $0.13/kWh |
| Estimated payback period | 10-13 years |
| Estimated 25-year savings | $24,000-$38,000 |
| Total installations statewide | 290,000+ |
These figures represent statewide averages. Your actual costs and savings will depend on your specific location, roof characteristics, electricity usage, utility rate plan, and which incentives you qualify for. We strongly recommend getting at least three quotes from licensed installers to compare pricing for your specific situation.
For a detailed breakdown of solar costs across all 50 states, see: Solar Panel Cost by State (2026).
Is Solar Worth It in North Carolina?
North Carolina's lower electricity rates extend the payback period compared to high-rate states, but full retail net metering, property tax exemptions (80%), and sales tax exemptions still make solar viable. The state's moderate installation costs and 4.5+ peak sun hours daily contribute to solid long-term savings. Homeowners in Duke Energy territory benefit most from available utility programs.
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Get Your Free North Carolina Solar Quote →Frequently Asked Questions
Does North Carolina have net metering?
Yes. North Carolina requires investor-owned utilities (Duke Energy Carolinas and Duke Energy Progress) to offer net metering at the full retail rate for residential systems. Excess credits roll over monthly and are trued up annually. EMCs and municipal utilities have their own policies, which may differ.
Is there a North Carolina solar tax credit?
No. North Carolina's 35% Renewable Energy Tax Credit expired at the end of 2015. There is no current state-level solar tax credit. However, the state offers an 80% property tax exemption for solar systems and a full sales tax exemption on solar equipment purchases.
How much does solar cost in North Carolina in 2026?
The average cost of a 6 kW solar system in North Carolina is approximately $15,720 ($2.62 per watt) before incentives. North Carolina's competitive installer market and moderate labor costs keep prices reasonable compared to national averages.
How long does solar take to pay back in North Carolina?
The typical payback period for solar in North Carolina is 10-13 years, longer than in high-electricity-rate states. However, with 25-year savings of $24,000-$38,000 and the property and sales tax exemptions, solar still provides a solid return on investment over the life of the system.
Is Duke Energy good for solar customers in North Carolina?
Duke Energy offers full retail net metering as required by state law, and has periodically offered solar rebate programs. While not the most aggressive solar-friendly utility, Duke Energy's compliance with North Carolina's net metering requirements ensures fair compensation for your solar production.
Learn More About Solar Incentives and Costs
Explore our other comprehensive solar guides to make the most informed decision: