Solar Guide

The Solar Energy System Property Tax Exclusion in North Carolina provides significant property tax savings for homeowners who install solar panels. Under this state tax exemption, qualifying solar energy systems (photovoltaic systems) receive an 80% exclusion from their appraised value when calculating property taxes. This means you only pay property taxes on 20% of your solar system’s assessed value, rather than the full amount.

To qualify for this exemption, your solar system must be classified as non-business personal property. For residential installations, this typically means you use the system primarily to offset your own electricity usage through net metering arrangements with your utility company, rather than operating it as a business to generate income. If you claim depreciation on the system as a business expense or recognize income from selling electricity back to the utility (beyond net metering credits), the system would be considered business property and still receive the 80% exclusion but remain taxable on the remaining 20%. Your county assessor will determine eligibility based on how you use and report the system on your tax returns, so be prepared to provide documentation about your solar installation and utility arrangements.

Solar for All (EnergizeNC) is a groundbreaking state program that received $156 million in federal funding from the EPA to help North Carolina families access affordable solar energy. The program is specifically designed to bring rooftop solar systems to low-income households across the state, helping them reduce their monthly energy bills while supporting clean energy adoption.

While the announcement doesn’t specify exact dollar amounts for individual homeowners, the program focuses on making solar accessible to families who traditionally couldn’t afford it by removing financial barriers and providing long-term affordability solutions. The initiative prioritizes low-income and disadvantaged communities, including state and federally recognized Tribal lands, and combines solar installations with existing energy efficiency programs to maximize savings.

The program is led by North Carolina’s Department of Environmental Quality State Energy Office, working with Advanced Energy, the NC Clean Energy Technology Center, and the NC Clean Energy Fund. Homeowners interested in this program should visit energizeNC.org for updates on when applications will open and specific eligibility requirements, as the program is still in the early deployment phase following the April 2024 funding announcement.

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 make home solar plus battery installations more affordable for customers in Duke Energy Carolinas and Duke Energy Progress service areas.

To participate, homeowners must install both solar panels and battery storage together, and work with a Duke Energy-approved Trade Ally installer. The program uses a random selection process that opens May 10th with a four-week application window. Participants have two enrollment options: they can join through a residential solar choice rider or a net metering bridge rider. Those choosing the net metering option must also enroll in Duke Energy’s battery control program, which allows the utility to use stored energy during peak times in exchange for monthly bill credits. The utility can access the battery system 30-36 times per year, though customers can opt out of up to four events annually while still receiving credits.

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 traditional 1-to-1 net metering system that closed to new customers on October 1, 2023. Under NMB, homeowners with solar panels can still receive credits for excess electricity they send back to the grid, but at a reduced rate compared to the previous program.

Here’s how the financial benefits work: Any electricity your solar system produces that you don’t use immediately gets credited to your account at 3.4 cents per kilowatt-hour (kWh). These credits carry forward month to month and are settled monthly rather than annually. However, there are additional monthly charges: Duke Energy Progress customers pay a $28 minimum monthly charge plus $0.62 per kW of your system’s DC capacity, while Duke Energy Carolina customers pay a $22 minimum monthly charge plus $0.28 per kW of DC capacity.

To be eligible for NMB, you must submit your solar interconnection application after October 1, 2023, and the program operates on a first-come, first-served basis until the annual capacity limit is reached. Once that limit is filled, new customers will need to enroll in the Residential Solar Choice program instead, which requires a time-of-use rate schedule with critical peak pricing. It’s important to note that customers who had solar installed under the previous 1-to-1 net metering program can keep those benefits until January 1, 2027, when they’ll need to transition to a new program.