North Carolina Solar Panels

The Duke Energy PowerPair Program provides one-time installation incentives of up to $9,000 for eligible North Carolina homeowners who install a solar and battery storage system at the same time. Solar systems are incentivized at $0.36 per watt-AC (up to 10 kW, for a maximum of $3,600), while battery storage is incentivized at $400 per kWh (up to 13.5 kWh, for a maximum of $5,400). The rebate is applied as a credit directly to your Duke Energy bill, typically within 10 business days of passing Duke’s inspection.

To qualify, you must be a Duke Energy Carolinas or Duke Energy Progress residential customer in North Carolina, and the system must be installed by a Duke Energy Trade Ally. Solar and battery must be installed simultaneously — existing solar systems without battery storage are not eligible. Note that Duke Energy Progress has reached capacity and closed its waitlist, while Duke Energy Carolinas has limited slots remaining. Availability changes frequently, so check the official program page before signing any contracts.

This is one of the most valuable solar incentives currently available in North Carolina. Given that program capacity is nearly exhausted, homeowners interested in this rebate should act quickly. Visit the official Duke Energy PowerPair page to verify current availability and find a certified Trade Ally installer in your area.

Beyond the one-time PowerPair rebate, Duke Energy offers two ongoing battery control programs — EnergyWise Home (for Duke Energy Progress customers) and Power Manager (for Duke Energy Carolinas customers). Homeowners who enroll allow Duke Energy to dispatch energy from their home battery during peak demand events, which occur 30 to 36 times per year. In exchange, participants receive monthly bill credits estimated at $23 to $92 per month ($276–$1,104 annually), depending on battery size and configuration.

Participants are notified before each battery control event and retain the right to opt out up to four times per year while still remaining eligible for the monthly credits. Compatible battery models include those from Enphase, FranklinWH, SolarEdge, and Tesla. This program stacks on top of the PowerPair upfront rebate, providing long-term recurring value for battery storage owners.

This program is ideal for homeowners who want to maximize the financial return on their battery investment over time. Because credits are ongoing for the life of program participation, a homeowner with a larger battery could earn over $1,000 per year simply by enrolling. Contact Duke Energy or your Trade Ally installer to confirm current enrollment availability and compatible equipment.

Under NC General Statute § 105-275(45), North Carolina offers a 100% property tax exemption for residential solar energy systems. Although solar panels typically increase a home’s market value, that added value is completely excluded from property tax assessments for homeowners. This exemption has been in effect since 2008 and is considered permanent with no expiration date, applying for the full life of your solar system.

For residential homeowners, the exemption is automatic — no separate application is required. The NC Department of Revenue classifies residential solar systems not used for business purposes as non-business personal property, which is exempt from taxation in North Carolina. This means that as long as you own your system outright (not through a third-party lease), you are protected from any increase in your annual property tax bill due to solar.

Important note: Legislative proposals in 2025 could alter property tax abatement rules beginning July 1, 2026, potentially reducing the exempt percentage in future years. Homeowners should verify the current law with their county tax assessor or the NC Department of Revenue before installation. Commercial solar installations receive an 80% property tax exemption on the appraised value of the system.

Under N.C. Gen. Stat. § 105-164.13(57a), solar energy equipment purchased for installation in North Carolina is exempt from the state’s 4.75% general sales tax as well as applicable local sales taxes. This exemption covers solar panels, inverters, racking hardware, and other associated equipment that make up a solar energy system. The savings can be meaningful — on a $20,000 system, the sales tax exemption alone could save a homeowner over $900.

This exemption applies at the point of purchase, meaning the tax savings are built into the cost of your installation rather than being a rebate you claim later. Your solar installer should automatically apply this exemption when purchasing equipment for your project. If you are purchasing equipment directly, be sure to reference the applicable statute to ensure the exemption is applied correctly.

This is a straightforward, permanent incentive that reduces the upfront cost of going solar in North Carolina. Combined with other available incentives like the Duke Energy PowerPair rebate and the property tax exemption, the sales tax exemption helps make solar an even more financially attractive investment for NC homeowners.

Net metering in North Carolina varies significantly by utility. Dominion Energy customers in northeastern NC enjoy the state’s best deal — traditional 1:1 retail-rate net metering, where excess solar energy sent to the grid earns credits at the same rate you pay for electricity (approximately 14¢/kWh). Credits roll forward month-to-month and offset future bills dollar for dollar. Blue Ridge Electric Membership Cooperative customers can choose between net metering at 1:1 retail rates or net billing at wholesale rates.

Duke Energy customers (the majority of NC) face a more complex structure. A Net Metering Bridge (NMB) Rate is available for new customers through January 1, 2027, offering better compensation than the standard export rate, subject to capacity limits. After that deadline — or once capacity is reached — new solar customers are placed on the Residential Solar Choice (RSC) Rider, which credits excess generation at Duke’s avoided cost rate of approximately $0.034/kWh, roughly 75–80% below the retail rate. Duke customers also face a monthly minimum bill ($22 for Duke Energy Carolinas; $28 for Duke Energy Progress) and non-bypassable charges for storm recovery and cybersecurity costs.

Legacy Duke Energy customers with interconnections approved before October 1, 2023 may remain on legacy net metering with 1:1 credits for up to 15 years from their interconnection date. Given the significant difference in compensation rates, prospective solar customers served by Duke Energy should carefully evaluate their expected export volumes and consider battery storage to maximize self-consumption. For the most current program details, visit the NC Public Staff’s net metering page or contact your utility directly.

The North Carolina Renewable Energy Tracking System (NC-RETS) is the state’s platform for issuing, tracking, and transferring Renewable Energy Certificates (RECs) — sometimes called SRECs — generated by solar and other renewable energy systems. Each certificate represents one megawatt-hour (MWh) of renewable electricity generated. Utilities and other entities subject to North Carolina’s Renewable Portfolio Standard (RPS) may purchase these certificates to demonstrate compliance.

While NC-RETS participation is an option for residential solar owners, the financial value of SRECs in North Carolina is generally low. This is because North Carolina’s RPS is not particularly aggressive, and the state accepts SREC registrations from solar systems located in any state — meaning the in-state supply is competing with a large national market. As a result, SREC prices in NC tend to be modest compared to states like New Jersey or Massachusetts.

Homeowners interested in participating should speak with their solar installer or a renewable energy broker about whether SREC registration makes financial sense for their system size. While the income potential may be limited, it can still provide some additional return on your solar investment over time. Visit ncrets.org for official registration information and program details.

The federal Commercial Solar Investment Tax Credit (ITC) allows businesses, farms, and commercial property owners to claim a 30% tax credit on the cost of a solar energy system. To qualify for the full 30% credit, construction must commence before July 4, 2026, and the system must be placed in service within 4 years of that date. Projects that begin construction after July 4, 2026 must be placed in service by December 31, 2027 to qualify for the full credit amount.

This is a dollar-for-dollar reduction in federal income tax liability — not a deduction — making it one of the most powerful financial incentives available for commercial solar installations. A $100,000 commercial solar system, for example, would generate a $30,000 federal tax credit. The credit can be carried forward if it exceeds tax liability in the year of installation.

Commercial solar owners in North Carolina can also benefit from 100% bonus depreciation, which allows the full cost of the solar system to be deducted as a business expense in the year it is placed in service (for property acquired after January 19, 2025). Combined with the ITC and North Carolina’s 80% commercial property tax exemption, the total incentive stack for commercial solar in NC remains highly compelling. Consult a tax professional to determine how these incentives apply to your specific business situation.

100% Bonus Depreciation has been permanently restored for business property acquired after January 19, 2025, including commercial solar energy systems. This provision allows businesses to immediately deduct the full cost of a solar installation in the year the system is placed in service, rather than depreciating it over the standard 5-year MACRS schedule. This significantly accelerates the tax benefit and improves the short-term cash flow of a commercial solar investment.

For example, a business that installs a $200,000 solar system can deduct the entire $200,000 from its taxable income in year one. At a 21% corporate tax rate, that translates to a $42,000 reduction in federal taxes owed — on top of any applicable Investment Tax Credit. This makes bonus depreciation one of the most impactful financial tools available to commercial solar buyers in North Carolina.

Bonus depreciation applies to solar panels, inverters, racking, and other system components that qualify as business property. It is available to C-corporations, S-corporations, partnerships, and sole proprietors. Because the interaction between bonus depreciation and the ITC can be complex, business owners are strongly encouraged to consult a qualified tax advisor or CPA to optimize their incentive strategy before installation.

The USDA Rural Energy for America Program (REAP) provides grants and loan guarantees to agricultural producers and rural small businesses to help finance the purchase and installation of renewable energy systems, including solar PV. Grants can cover up to 50% of eligible project costs, and when combined with other federal and state incentives, eligible farms and rural businesses in North Carolina can potentially offset 70–90% of their total solar installation costs.

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. The solar system must be for business or agricultural use — residential-only systems do not qualify. Applications are accepted on a rolling basis, and funding is awarded competitively, so early application is recommended.

REAP grants are administered through the USDA Rural Development office. North Carolina farmers and rural business owners interested in applying should contact their local USDA Rural Development state office for guidance on the application process, eligible costs, and current funding availability. This program represents a significant opportunity for agricultural and rural commercial solar adoption in North Carolina.

Under the federal Direct Pay (Elective Pay) provision, tax-exempt organizations — including nonprofits, municipalities, counties, school districts, tribal governments, and other government entities — can receive a direct cash reimbursement of at least 30% of the cost of a solar energy system. Because these organizations do not pay federal income taxes, they previously could not benefit from the Investment Tax Credit. Direct Pay solves this by converting the credit into a direct payment from the IRS.

This is a transformative incentive for nonprofits and public institutions in North Carolina. A nonprofit that installs a $150,000 solar system, for example, could receive a $45,000 direct payment from the federal government — with no tax liability required. The payment is made after the system is placed in service and the organization files the appropriate IRS forms (Form 3800 and related schedules) with its annual return.

Eligible entities should work with a solar developer or tax advisor experienced in Direct Pay to ensure proper documentation and compliance. Additional bonus credits may be available for systems installed in energy communities or low-income areas, potentially increasing the total benefit above 30%. Visit the IRS Elective Pay page for official guidance and eligibility requirements.

The City of Asheville offers a building permit fee rebate for residential and commercial property owners who install solar energy systems. This local incentive is designed to help offset the administrative cost of obtaining the required building permits for a solar installation. The rebate is managed by Asheville’s Development Services Department.

The rebate amount for solar panel installations is approximately $50 on the building permit application fee, though some sources have cited amounts up to $175. Homeowners and businesses in Asheville should confirm the current rebate amount directly with the Development Services Department before installation, as the amount may vary based on system type or current program terms.

While modest in dollar amount, this rebate reflects Asheville’s commitment to supporting clean energy adoption at the local level. It is available to both residential and commercial solar installers within city limits. Contact the City of Asheville Development Services Department at the link above for the most current rebate amounts and application instructions.

Under NC General Statute § 22B-20, North Carolina’s Solar Access Law guarantees homeowners the legal right to install solar energy systems on their property. Homeowners’ associations (HOAs) and deed restrictions cannot prohibit solar installations outright. This protection ensures that even in communities with strict HOA rules, residents retain the ability to go solar.

While HOAs cannot ban solar panels, they are permitted to impose reasonable restrictions on the placement or appearance of solar systems — for example, requiring panels to be installed on rear-facing roof sections. However, any such restrictions are legally unenforceable if they would increase the cost of the solar system by more than 10% or reduce its energy output or efficiency in a meaningful way.

This law is an important protection for North Carolina homeowners who may face pushback from their HOA when going solar. If your HOA attempts to block or unreasonably restrict your solar installation, you have legal recourse under state law. Consult the full text of the statute at the NC Legislature’s official website or speak with a real estate attorney if you encounter HOA resistance to your solar project.