Charlotte, NC

The Solar Energy System Property Tax Exclusion in North Carolina provides significant tax relief for solar system owners. Under this incentive, 80% of the appraised value of a photovoltaic (PV) solar system is excluded from property tax assessments. This means you’ll only pay property taxes on 20% of your solar system’s value, substantially reducing your annual property tax burden.

Eligibility for this tax benefit 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 for your solar system on 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.

The Solar for All (EnergizeNC) program is a $156 million state initiative funded by the EPA’s Greenhouse Gas Reduction Fund to help North Carolina homeowners, particularly those in low-income and disadvantaged communities, access affordable solar energy. Led by the North Carolina Department of Environmental Quality’s State Energy Office in partnership with several clean energy organizations, this program aims to deploy rooftop solar systems that will reduce energy costs and greenhouse gas emissions across the state.

While specific financial benefits aren’t detailed in the announcement, the program focuses on making solar accessible to households where energy costs represent a significant portion of their budget. Eligibility is primarily targeted at low-income and disadvantaged communities, including state and federally recognized Tribal lands. The program is still in its initial stages, so interested homeowners should visit www.energizeNC.org to sign up for updates on deployment timelines, application processes, and specific benefit details as they become available.

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 is designed to 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 Trade Ally (approved installer) for installation. Participants can choose between two enrollment options: the Residential Solar Choice rider (RSC) or the Net Metering Bridge rider (NMB). NMB customers must also enroll in Duke Energy’s battery control option, allowing the utility to temporarily adjust their system settings up to 36 times per year in exchange for additional monthly bill credits. The program’s 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.

The Net Metering Bridge Rider (NMB) is a transitional solar incentive program offered by Duke Energy in North Carolina. This program allows homeowners with solar panels to receive credit for excess electricity they send back to the grid, though at a reduced rate compared to previous programs. Under NMB, any excess electricity produced in a month that exceeds your home’s consumption is credited at 3.4 cents per kilowatt-hour (kWh).

To be eligible, homeowners must submit interconnection applications to Duke Energy Carolina (DEC) or Duke Energy Progress (DEP) starting from October 1, 2023, until the annual capacity limit is reached. The program includes minimum monthly charges ($22 for DEC customers and $28 for DEP customers) plus a monthly charge based on system size ($0.28/kW DC for DEC and $0.62/kW DC for DEP). Important considerations include: credits are settled monthly rather than annually; this program is temporary until capacity limits are reached, after which new customers will be placed on the Residential Solar Choice (RSC) program; and the previous 1-to-1 net metering program closed to new customers on October 1, 2023, with grandfathering until January 1, 2027.