North Carolina Solar Incentives Overview
North Carolina is the solar leader of the Southeast, ranking #5 nationally for installed solar capacity. The state benefits from generous utility programs (particularly Duke Energy's PowerPair), the 30% federal ITC, and an 80% property tax exemption.
Current Incentive Summary
| Incentive | Value | Availability |
|---|---|---|
| Federal ITC (PPA/Lease only in 2026) | 30% via 48E (company claims it) | Through Dec 2027 (PPA/Lease only) |
| Duke PowerPair | $0.20/watt | Duke customers |
| Property Tax Exemption | 80% exemption | All homeowners |
| Net Metering | Retail rate | All IOUs |
Federal Tax Credit Update: What Changed in 2026
Important 2026 Update: The 30% residential ITC (25D) for homeowner-purchased solar systems (cash or loan) expired on December 31, 2025. There is no longer a federal tax credit for purchased systems.
- PPA/Lease: Solar company claims a 30% commercial credit (48E) through Dec 2027, typically passes savings to you as lower rates
- Purchased systems (cash/loan): No federal credit available in 2026
- Stackable: Combines with Duke PowerPair and NC incentives
- Requirements: System must be at your primary residence
Example savings:
Every home is different. Chat with our AI to get numbers specific to your address, usage, and utility.
North Carolina Property Tax Exemption
North Carolina offers an 80% property tax exemption for residential renewable energy systems. This means 80% of the added value from solar is exempt from property taxes.
- Exemption: 80% of added value
- 20% Taxable: Remaining 20% may increase taxes
- Savings: Can save $500-$1,500/year
- Application: Through county assessor
Net Metering
North Carolina investor-owned utilities offer net metering programs. After 2023 rate changes, new customers may be placed on time-of-use rate structures with the Net Metering Bridge (NMB) rider.
How Net Metering Works in NC
- Credit Rate: Retail rate for exported energy
- System Size Limit: Up to 100% of annual usage
- Credit Rollover: Month-to-month
- Riders: Rider RSC (standard) or NMB (bridge)
Duke Energy Programs
Duke Energy is the largest utility in North Carolina and offers some of the best solar incentive programs in the country.
Duke PowerPair Program
Duke Energy's PowerPair program provides rebates for solar and battery installations:
- Solar Rebate: $0.20 per watt
- Battery Bonus: Additional $0.20/kWh capacity
- Example: 10kW system = $2,000 rebate
- With Battery: +$1,000-$2,000 bonus
PowerPair Requirements
- Must be Duke Energy customer
- System must be grid-tied
- Installed by approved contractor
- Rebates paid after installation
Duke Net Metering
- Retail rate credits for exported solar
- Available through Rider RSC or NMB
- Monthly credit rollover
Other Utilities
Dominion Energy (Eastern NC)
- Net metering available
- Energy efficiency programs
Progress Energy (Now Duke)
- Same programs as Duke Energy
- Part of Duke territory
Rural Co-ops
- Various net metering programs
- May offer additional local incentives
Calculate Your Total Savings
Here's how to estimate your total incentives when going solar in North Carolina:
Example: 10kW System ($24,000)
| System Cost | $24,000 |
| Federal ITC (PPA/Lease only in 2026) | -$7,200 |
| Duke PowerPair ($0.20/W) | -$2,000 |
| Net Cost After Incentives | $14,800 |
With Battery (13.5 kWh):
| Battery Rebate Bonus | -$1,500 |
| Total Net Cost | $13,300 |
What's the best way to maximize North Carolina solar savings?
Follow these steps:
- Apply for Duke PowerPair early in the year
- Add battery storage for additional rebates
- Explore PPA/Lease options to benefit from the 30% commercial credit (48E)
- Enroll in net metering rider
- Get quotes from Duke-approved installers
How to Claim Your Incentives
- Federal ITC: Claim on IRS Form 5695
- Duke PowerPair: Apply through Duke Energy
- Property Tax: Apply through county assessor
- Net Metering: Sign up through your utility