Solar Guide

North Carolina’s Solar Energy System Property Tax Exclusion is a state tax benefit that reduces the property tax burden on solar panel systems. When you install a solar energy system on your property, this incentive excludes 80% of the system’s appraised value from your property tax assessment. This means you only pay property taxes on 20% of your solar system’s value, significantly reducing the ongoing tax costs associated with your solar investment.

The eligibility for this tax exclusion depends on how you use your solar system. If you own a residential solar system and use it primarily to offset your own electricity costs through net metering (where you receive credits from your utility company), your system qualifies as non-business personal property and is completely exempt from property taxes. However, if you use your solar system to generate income or claim it as a business expense on your tax returns, it becomes taxable business property but still receives the 80% exclusion benefit. County assessors will review your tax returns, utility agreements, and system documentation to determine which category applies to your specific situation.

Solar for All (EnergizeNC) is a state program that received $156 million in federal funding from the EPA to help North Carolina households access affordable solar energy. The program specifically focuses on bringing rooftop solar installations to low-income and disadvantaged communities across the state, including tribal lands. Led by the North Carolina Department of Environmental Quality’s State Energy Office, this initiative aims to reduce energy costs for families while promoting clean energy adoption.

While the announcement doesn’t specify exact dollar amounts for individual homeowners, the program is designed to make solar energy accessible to households where energy costs represent a significant portion of their budget. The initiative will combine solar installations with existing energy efficiency programs to maximize long-term affordability. Eligibility appears to focus on low-income and disadvantaged communities, though specific income requirements haven’t been detailed in this announcement. The program is still in development, so homeowners interested in participating should visit www.energizeNC.org to stay updated on deployment details, application processes, and specific eligibility criteria as they become available.

Duke Energy’s PowerPair program is a pilot incentive that helps North Carolina homeowners reduce the upfront cost of installing solar panels paired with battery storage systems. This utility program offers a one-time cash incentive of up to $9,000 to customers who install qualifying solar-plus-battery systems in Duke Energy Carolinas and Duke Energy Progress service areas. The exact incentive amount depends on the type of solar array and battery system you choose to install.

To participate, you must use a Duke Energy Trade Ally installer and apply through a random selection process that opens on May 10th with a four-week application window. Participants have two enrollment options: the residential solar choice rider (RSC) or the net metering bridge rider (NMB). If you choose the NMB option, you’ll be required to enroll in Duke Energy’s Power Manager and EnergyWise Home Battery Control programs, which provide additional monthly bill credits in exchange for allowing Duke Energy to temporarily use your battery’s stored power during peak demand periods (30-36 times per year). You can opt out of up to four events annually and still receive credits. Your battery system must have internet connectivity to participate in these demand response programs.

The Net Metering Bridge Rider (NMB) is a transitional solar compensation program offered by Duke Energy Progress and Duke Energy Carolina in North Carolina. This program replaced the previous 1-to-1 net metering system and allows homeowners with solar panels to receive credits for excess electricity they send back to the grid. Under NMB, you’ll receive full retail rate credit for solar energy you use directly in your home, but any excess energy exported to the grid each month is credited at a reduced rate of 3.4 cents per kWh.

The financial benefits vary by utility company. Duke Energy Progress customers pay a $28 minimum monthly charge plus $0.62 per kW DC of solar capacity per month, while Duke Energy Carolina customers pay a $22 minimum monthly charge plus $0.28 per kW DC per month. Credits are settled monthly, meaning any unused credits don’t roll over to the next month. To be eligible, you must have submitted your solar interconnection application starting October 1, 2023, and the program continues until the annual capacity limit is reached. Once that limit is met, new customers will transition to the Residential Solar Choice program, which requires time-of-use pricing. Homeowners who had existing 1-to-1 net metering agreements before October 1, 2023, can keep those terms until January 1, 2027.