North Carolina Solar Panels

The Duke Energy PowerPair program provides a one-time rebate of up to $9,000 for Duke Energy customers in North Carolina who install a qualifying solar-plus-battery system. The rebate pays $0.36 per watt (up to 10 kW) for solar panels — up to $3,600 — and $400 per kWh (up to 13.5 kWh) for battery storage — up to $5,400. For example, a 7 kW solar system paired with a 13.5 kWh Tesla Powerwall would earn approximately $7,920 in rebates.

Availability is limited: Duke Energy Progress has already reached its capacity and is now operating a waitlist, while approximately one-third of Duke Energy Carolinas’ capacity remains. The program is a three-year pilot covering a total of 60,000 kW of solar across both territories (enough for roughly 8,550 average-sized home installations). Applications open each year on May 10 through a four-week random selection window on the Duke Energy website.

To participate, your system must be installed by a Duke Energy-approved Trade Ally contractor, use equipment from the approved battery vendor list, and you must grant Duke Energy access to your system’s operational and performance data via a stable internet connection. Homeowners on the Duke Energy Progress waitlist should monitor for openings, as spots may become available if some installations fall through.

The Duke Energy EnergyWise Home program is a Virtual Power Plant (VPP) that rewards homeowners for allowing Duke Energy limited access to their home battery storage system. Enrolled customers can earn up to $92 per month — approximately $1,100 per year — in energy bill credits. Additionally, homeowners who enroll in the battery control program receive an extra $6.50 per kW of continuous discharge capacity each month (e.g., a battery with a 5 kW discharge rate earns an additional $32.50/month).

Duke Energy will access your battery between 30 and 36 times per year to help manage grid demand. You will be notified before each event and can opt out up to four times per year while still remaining eligible for the full bill credits. The utility will never discharge your battery below 20% capacity, preserving your backup power reserve.

To be eligible, you must apply for interconnection, agree to participate for a minimum of one year, maintain a stable internet connection, and install an approved battery. Compatible batteries include models from Enphase, FranklinWH, SolarEdge, and Tesla. This program can be combined with the PowerPair rebate, making it a strong ongoing financial benefit for solar-plus-storage homeowners.

When you install solar panels on your home in North Carolina, your property value increases — but thanks to the state’s Solar Energy System Property Tax Exclusion, that added value is fully exempt from property taxes for residential homeowners not using the system for business income. This means your annual property tax bill will not go up as a result of adding solar, providing ongoing savings for as long as you own the system.

Commercial property owners also benefit, though at a reduced rate: businesses can claim an 80% exemption on the added property value from a solar installation, meaning only 20% of the system’s added value is subject to property taxes. This exclusion applies year after year, making it a long-term financial benefit on top of any upfront rebates or credits.

It is important to note that North Carolina does not offer a solar sales tax exemption, so you will still pay state sales tax on the purchase of solar equipment and installation. However, the property tax exemption alone can represent hundreds of dollars in annual savings depending on your home’s value and local tax rates.

Duke Energy residential solar customers in North Carolina are currently served under the Net Metering Bridge (NMB) rider. Under NMB, your solar system offsets your electricity usage in real-time during the day. Any excess electricity you export to the grid earns a credit at a reduced rate of $0.034 per kWh (3.4 cents/kWh) — significantly lower than the full retail rate. These credits carry forward month-to-month and are settled monthly. Customers can remain on NMB for up to 15 years from their interconnection application date, after which they transition to the Residential Solar Choice (RSC) rider.

Customers who were on the legacy Rider NM (traditional 1-for-1 net metering) before October 1, 2023 may remain on that plan until December 31, 2026, at which point they will be automatically transitioned to Rider NMB. New solar customers interconnected after October 1, 2023 are placed directly on NMB. Monthly fixed charges apply: Duke Energy Progress customers pay a $28 minimum monthly charge plus $0.62/kW of DC capacity per month; Duke Energy Carolinas customers pay a $22 minimum monthly charge plus $0.28/kW of DC capacity per month.

Not all NC utilities follow Duke Energy’s structure. Dominion Energy customers in NC can benefit from traditional net metering with full retail credits. Blue Ridge EMC customers may choose between net metering (credited at the retail rate monthly) or net billing (credited at 5 cents/kWh for exports). Most electric cooperatives such as Wake Electric and EnergyUnited use net billing at avoided-cost rates of approximately 3–4 cents/kWh. Brunswick Electric still offers traditional 1-for-1 net metering. Check with your specific utility for the exact policy that applies to your account.

EnergizeNC is a $156 million Solar for All grant program awarded to North Carolina by the EPA in April 2024. Led by the NC Department of Environmental Quality’s State Energy Office in partnership with the NC Clean Energy Technology Center, NC Clean Energy Fund, and Advanced Energy, the program is designed to help low-to-moderate income and disadvantaged households access rooftop solar and, in limited cases, battery storage — with an average projected savings of 20% on electricity bills. The program also targets multifamily housing owned by nonprofits and public organizations, as well as community solar pilots.

Important Notice: As of August 7, 2025, the EPA announced its intent to terminate the Solar for All program. The NC Department of Environmental Quality and its co-grantees have received and are reviewing a termination letter from the EPA. The program is currently paused. Homeowners interested in this program should monitor the EnergizeNC website for updates on whether the program resumes following any legal challenges.

If the program resumes, it will prioritize households in low-income and disadvantaged communities, including those on state- and federally recognized Tribal lands. Participants would receive meaningful financial incentives to reduce the upfront cost of solar installation. For the latest status updates, visit the official EnergizeNC website at energizenc.org or the NC DEQ Solar for All page.

North Carolina’s Renewable Energy Income Tax Credit (RETC) provides a 35% state income tax credit on the cost of qualifying renewable energy property for commercial, industrial, and non-residential installations. The maximum credit is $2.5 million per installation, making it a significant incentive for businesses, nonprofits, and other non-residential entities investing in solar energy systems.

This credit applies to solar photovoltaic systems and other qualifying renewable energy technologies installed on commercial properties. It is separate from any federal commercial tax incentives and can be used in conjunction with other applicable programs such as bonus depreciation or the federal commercial Investment Tax Credit (ITC), which remains available for commercial projects that commence construction before applicable deadlines.

Businesses considering solar installations in North Carolina should consult with a tax professional to understand how the RETC interacts with other state and federal tax obligations. For full program details, eligibility requirements, and application procedures, refer to the DSIRE database maintained by the NC Clean Energy Technology Center or consult the NC Department of Revenue.

The USDA Rural Energy for America Program (REAP) provides grants and loan guarantees to agricultural producers and rural small businesses in eligible areas to help finance renewable energy systems, including solar photovoltaic installations. Grants can cover up to 50% of total eligible project costs, making this one of the most generous solar incentives available for qualifying applicants in rural North Carolina.

To be eligible, applicants must be either an agricultural producer (farmer or rancher) with at least 50% of gross income from agricultural operations, or a small business located in a rural area as defined by USDA guidelines. The solar system must be installed at an eligible rural location. Grant amounts are determined competitively, and applications are accepted on a rolling basis with periodic funding cycles.

REAP grants can be combined with other incentives, including the federal commercial Investment Tax Credit and state programs, to significantly reduce the net cost of a solar installation. North Carolina rural businesses and farms interested in REAP should contact their local USDA Rural Development office for current funding availability, application deadlines, and eligibility determinations.

The City of Asheville, North Carolina offers a building permit fee rebate for property owners who install solar energy systems. This local incentive helps offset the administrative cost of obtaining the required permits for a solar installation. The rebate amount for solar panel installations is $50 on the building permit application fee, though some sources have cited amounts up to $175 — homeowners should confirm the current amount directly with the City of Asheville’s Development Services department.

This rebate is available to both residential homeowners and commercial businesses within Asheville city limits. While the dollar amount is modest compared to larger state and utility incentives, it is a straightforward way to reduce the total out-of-pocket cost of going solar and reflects the city’s commitment to supporting clean energy adoption.

To claim the rebate, applicants should inquire at the time of permit application with the City of Asheville’s Development Services or Planning department. This incentive can be combined with other available programs such as the Duke Energy PowerPair rebate and the NC property tax exemption for maximum savings.

North Carolina operates the NC Renewable Energy Tracking System (NC-RETS), which issues Renewable Energy Certificates (RECs) — sometimes called SRECs — to solar system owners. Each REC represents one megawatt-hour (MWh) of electricity generated from a renewable source. Utilities in North Carolina are required to meet a Renewable Portfolio Standard (RPS), and they can purchase RECs from solar owners to satisfy that requirement.

However, homeowners should be aware that the financial value of RECs in North Carolina is generally low. North Carolina’s RPS is not particularly aggressive, and the state accepts REC registrations from solar systems in any state, which increases the supply and suppresses prices. As a result, SRECs are unlikely to be a major source of income for most residential solar owners in NC compared to states with stronger RPS mandates.

Solar system owners interested in participating in NC-RETS should register their system through the NC-RETS portal and work with a REC aggregator or broker to sell certificates. For the most current information on REC values and registration requirements, consult the DSIRE database or the NC Utilities Commission.