Hickory, NC Solar Panels

North Carolina’s Solar Energy System Property Tax Exclusion helps homeowners save money on their annual property taxes when they install a solar energy system. When you add solar panels to your home, they typically increase your property’s value. Normally, this would mean higher property taxes. However, this state program excludes 80% of your solar system’s appraised value from property taxation, significantly reducing the tax impact of your investment.

To qualify for this exclusion, your solar system must be classified as business personal property. This typically applies if you’re selling electricity back to the grid and reporting that income, or if you’re claiming depreciation on the system as a business expense on your tax return. However, if you have a standard net metering arrangement where you simply receive credits on your utility bill (rather than income payments), your system is considered non-business personal property and is completely exempt from property taxes—meaning you won’t pay any additional property tax on your solar investment.

There are no specific deadlines to claim this benefit, as it applies automatically based on how your system is used and owned. Your county tax assessor will determine your eligibility based on documentation such as your utility agreement and how you report the system on your income tax returns. It’s important to understand the difference between receiving income from electricity production (which makes you eligible for the 80% exclusion) versus receiving utility bill credits through net metering (which provides a complete exemption). Most residential homeowners with typical solar installations and net metering arrangements will find their systems are fully exempt from property taxation.

Solar for All (EnergizeNC) is a $156 million state program designed to help North Carolina households—particularly those with low to moderate incomes—install rooftop solar panels and battery storage systems. Led by the NC Department of Environmental Quality’s State Energy Office in partnership with Advanced Energy, the NC Clean Energy Technology Center, and the NC Clean Energy Fund, this program aims to reduce energy costs and expand access to clean energy for families who have historically faced barriers to solar adoption. The funding comes from the EPA’s Greenhouse Gas Reduction Fund and specifically targets low-income and disadvantaged communities across the state, including state- and federally recognized Tribal lands.

While specific financial benefit amounts have not yet been announced, the program is designed to provide meaningful cost savings on energy bills for participating households by covering a significant portion of solar installation costs. The program will also align with existing low-income energy efficiency efforts and explore innovative financing approaches to ensure long-term affordability. Eligibility will focus on low- and moderate-income households, with priority given to disadvantaged communities. Homeowners interested in this program should visit www.energizeNC.org to sign up for updates, as the coalition is still developing the specific program details, application processes, and timelines for deployment. This is a multi-year initiative, so there will be opportunities to participate as the program rolls out across North Carolina.

Duke Energy’s PowerPair pilot program offers North Carolina homeowners a one-time incentive of up to $9,000 to help lower the cost of installing a solar panel system paired with battery storage. The exact incentive amount depends on the type of solar array and battery you install. This program is designed to make home solar plus battery systems more affordable while helping Duke Energy manage the state’s growing clean energy grid.

To participate, you must be a Duke Energy Carolinas or Duke Energy Progress residential customer in North Carolina and use an approved Duke Energy Trade Ally installer (you can find one through their Find It Duke program). You’ll choose between two enrollment options: the Residential Solar Choice (RSC) rider or the Net Metering Bridge (NMB) rider. If you select the NMB option, you’re required to enroll in Duke Energy’s Power Manager or EnergyWise Home Battery Control program, which provides additional monthly bill credits in exchange for allowing Duke Energy to temporarily access your battery’s stored electricity 30-36 times per year (you can opt out of up to 4 events annually). Not all solar and battery systems qualify for this program, so check Duke Energy’s approved equipment list before purchasing.

The application process uses a random selection system to ensure fair access to the incentive. The first application window opens May 10 and runs for four weeks. You can sign up for program updates and view equipment eligibility requirements at duke-energy.com/PowerPair. Since this is a pilot program with limited funding, applying during the selection window is important to secure your spot.

The Net Metering Bridge Rider (NMB) is a transitional solar compensation program available to Duke Energy Progress and Duke Energy Carolina customers in North Carolina. Starting October 1, 2023, this program replaced the previous 1-to-1 net metering option for new solar customers. Under NMB, your solar panels offset your electricity use in real-time during the day, and any excess energy you send back to the grid is credited to your account at a reduced rate of $0.034 per kilowatt-hour (3.4 cents/kWh). This is significantly lower than the retail electricity rate you pay for power from the grid.

To participate in NMB, you must submit your interconnection application during the enrollment period before the annual capacity limit is reached. Duke Energy Progress customers will pay a minimum monthly charge of $28 plus $0.62 per kilowatt of your system’s DC capacity each month. Duke Energy Carolina customers will pay a $22 minimum monthly charge plus $0.28 per kilowatt DC per month. Any excess credits you accumulate are settled monthly rather than carried forward indefinitely. Once the annual capacity for NMB is filled, new solar customers will need to enroll in the Residential Solar Choice (RSC) program instead, which requires participation in a Time of Use rate plan with Critical Peak Pricing. If you installed solar before October 1, 2023 under the previous 1-to-1 net metering program, you’re grandfathered in until January 1, 2027.