Raleigh, NC

The Solar Energy System Property Tax Exclusion is a valuable North Carolina tax incentive that reduces the property tax burden for solar photovoltaic (PV) system owners. Under this program, qualifying solar electric systems are eligible for 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 reducing your annual property tax liability.

To qualify for this tax exclusion, your solar system must be used to produce income or in connection with a business. This typically applies to systems where you sell electricity back to the utility company or claim depreciation expenses on your tax returns. However, if you’re a homeowner with a residential solar system that only provides credits through net metering (reducing your electric bill) and you don’t claim it as a business expense, your system would be completely exempt from property taxation under a different provision (G.S. 105-275(16)). There are no specific deadlines or expiration dates for this incentive, as it’s an ongoing program established by North Carolina state law.

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 and eligibility requirements are still being developed as the program launches, EnergizeNC will focus on making solar accessible to households for whom energy costs represent a significant portion of their budget. The program will prioritize low-income households, disadvantaged communities, and residents of state and federally recognized Tribal lands. Homeowners interested in this opportunity should visit www.energizeNC.org to sign up for updates on program deployment, application processes, and financial incentives 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 aims to make home solar plus battery systems more affordable while supporting North Carolina’s clean energy goals.

To qualify, homeowners must be Duke Energy residential customers in North Carolina (either Duke Energy Carolinas or Duke Energy Progress service areas). Participants must use a Duke Energy Trade Ally (approved installer) and can enroll through either a residential solar choice rider (RSC) or a 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 up to 36 times per year in exchange for additional monthly bill credits. The program’s initial enrollment window opens May 10, 2024, with participants selected through a random selection process to ensure incentive equity. 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 for both Duke Energy Progress (DEP) and Duke Energy Carolina (DEC) customers. This program allows solar system owners to receive credit for excess electricity their systems generate and send back to the grid. Unlike the previous 1-to-1 net metering program that ended October 1, 2023, the NMB provides monthly net metering where any excess production not used within the month is credited at 3.4 cents per kilowatt-hour.

To be eligible, homeowners must submit interconnection applications starting October 1, 2023, until the annual capacity allocation is filled. The program includes minimum monthly charges ($28 for DEP customers and $22 for DEC customers) plus a monthly charge based on system size ($0.62/kW DC for DEP and $0.28/kW DC for DEC). Once the NMB annual capacity is reached, new customers will be placed on the Residential Solar Choice (RSC) program, which requires time-of-use with critical peak pricing. Homeowners should note that credits are settled monthly under NMB, and the program serves as a bridge until the full transition to the RSC program.