Fayetteville, NC

The Solar Energy System Property Tax Exclusion is a valuable North Carolina tax incentive that reduces the property tax burden for solar 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 assessed value, significantly lowering your annual property tax bill.

Eligibility depends on how you use your solar system. If you’re a homeowner using solar panels solely for your home’s energy needs 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 earn income by selling electricity to utility companies, your system is considered business personal property and will receive the 80% tax assessment reduction. There are no specified deadlines or expiration dates for this incentive, 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, with a special focus on low-income and disadvantaged communities. This program aims to reduce greenhouse gas emissions while lowering energy costs for households across the state, including those in state and federally recognized Tribal lands.

While specific financial benefits aren’t detailed in the announcement, the program will help eligible low-income homeowners install rooftop solar systems that can significantly reduce monthly utility bills. The program is led by the North Carolina Department of Environmental Quality’s State Energy Office in partnership with several organizations including Advanced Energy and the North Carolina Clean Energy Technology Center. For the latest information on eligibility requirements, application deadlines, and program updates, interested homeowners should visit www.energizeNC.org to sign up for notifications as the program develops.

Duke Energy’s PowerPair program offers North Carolina homeowners a significant financial incentive for pairing solar panels with battery storage systems. Participants can receive a one-time incentive of up to $9,000 to help offset the cost of installing both solar panels and a battery storage system. This program is available to residential customers in Duke Energy Carolinas and Duke Energy Progress service areas in North Carolina.

To qualify, homeowners must use a Duke Energy-approved Trade Ally installer and install eligible equipment. The program offers two enrollment options: the Residential Solar Choice rider or the Net Metering Bridge rider (which requires enrollment in the Battery Control option for additional monthly bill credits). Applications open on May 10, 2024, with participants initially selected through a random selection process during a four-week window. Interested homeowners can sign up for program updates and view eligible equipment at duke-energy.com/PowerPair.

The Net Metering Bridge Rider (NMB) is a transitional solar incentive program offered by Duke Energy in North Carolina (both Duke Energy Progress and Duke Energy Carolina). This program allows homeowners with solar panels to receive credit for excess electricity they send back to the grid each month. Unlike the previous 1-to-1 net metering program, any excess production that isn’t used within the same month is credited at a lower rate of 3.4 cents per kilowatt-hour.

To be eligible, homeowners must submit their interconnection applications after October 1, 2023, and before the annual capacity limit is reached. The program includes minimum monthly charges ($28 for Duke Energy Progress customers and $22 for Duke Energy Carolina customers) plus a monthly charge based on system size ($0.62/kW DC for DEP and $0.28/kW DC for DEC). Once the annual capacity for NMB is filled, new customers will be placed on the Residential Solar Choice (RSC) program, which requires time-of-use pricing with critical peak pricing.

Important considerations: The previous 1-to-1 net metering program closed to new customers on October 1, 2023, with grandfathering until January 1, 2027. Under NMB, credits are settled monthly rather than annually, which means unused credits don’t accumulate for long periods. Homeowners should act quickly as this is a transitional program with limited capacity before the more complex RSC program becomes the only option.