North Carolina

The Solar Energy System Property Tax Exclusion is a valuable North Carolina state tax incentive that reduces the property tax burden for solar energy system owners. Under this program, qualifying solar photovoltaic (PV) systems receive an 80% exclusion from property tax assessments. This means you’ll only pay property taxes on 20% of your solar system’s appraised value, significantly reducing your annual property tax liability.

Eligibility depends on how you use your solar system. If you’re a homeowner using solar panels solely to offset your own electricity usage through net metering (receiving credits from your utility company), your system qualifies as non-business personal property and is completely exempt from property taxes. However, if you claim depreciation expenses on your tax returns or receive direct income from selling electricity to utilities, your system is considered business personal property and will receive the 80% tax exclusion. This incentive has no expiration date and applies automatically when your property is assessed, making it a long-term benefit for North Carolina solar owners.

The Solar for All (EnergizeNC) program is a $156 million state initiative designed to help North Carolina homeowners access affordable solar energy. This program specifically targets low-income and disadvantaged communities, including residents of state and federally recognized Tribal lands, making clean energy accessible to those who might otherwise be unable to afford it. The program aims to reduce greenhouse gas emissions while lowering energy costs for participants.

While specific dollar amounts of savings for individual homeowners aren’t detailed in the announcement, the program focuses on deploying rooftop solar on low-income homes to reduce utility costs. Eligibility is primarily based on income level, with priority given to low and moderate-income households. The program is being implemented by the North Carolina Department of Environmental Quality’s State Energy Office in partnership with several organizations. For the latest information on deployment timelines, eligibility requirements, and to sign up for updates, interested homeowners should visit www.energizeNC.org.

Duke Energy’s PowerPair program offers North Carolina homeowners a significant financial incentive for installing solar panels paired with battery storage systems. Participants can receive a one-time incentive of up to $9,000, with the exact amount depending on the type of solar array and battery installed. This program helps make home solar plus battery systems more affordable while supporting North Carolina’s clean energy goals.

To qualify, homeowners must live in Duke Energy Carolinas or Duke Energy Progress service areas in North Carolina and must use a Duke Energy-approved Trade Ally installer. Participants can enroll through either a residential solar choice rider (RSC) or a net metering bridge rider (NMB), with NMB customers required to also enroll in Duke Energy’s battery control option. The initial application window opens May 10, 2024, and will remain open for four weeks, with participants selected through a random selection process to ensure incentive equity. Homeowners can sign up for program updates and check equipment eligibility at duke-energy.com/PowerPair.

The Net Metering Bridge Rider (NMB) is a transitional solar incentive program offered by Duke Energy in North Carolina for both Duke Energy Progress (DEP) and Duke Energy Carolina (DEC) customers. This program allows solar homeowners to receive credit for excess electricity their systems produce and send back to the grid. Unlike the previous 1-to-1 net metering program that ended October 1, 2023, the NMB provides monthly net metering where any excess production not used within the month is credited at a rate of 3.4 cents per kilowatt-hour.

To be eligible, homeowners must submit interconnection applications starting October 1, 2023, until the annual capacity for the program is filled. Once this capacity is reached, new customers will be placed on the Residential Solar Choice (RSC) program instead. Important considerations include minimum monthly charges ($28 for DEP and $22 for DEC customers) and a monthly charge based on system size ($0.62/kW DC for DEP and $0.28/kW DC for DEC). The NMB program serves as a bridge between the former net metering program (which will be grandfathered until January 1, 2027) and the future RSC program, which will require time-of-use with critical peak pricing rate schedules.