Solar Guide

North Carolina’s Solar Energy System Property Tax Exclusion is a state tax benefit that reduces the property tax burden on solar panel systems. When you install a solar energy system on your property, this incentive excludes 80% of the system’s appraised value from your property tax assessment. This means you only pay property taxes on 20% of your solar system’s value, significantly reducing the ongoing tax costs associated with your solar investment.

The eligibility for this tax exclusion depends on how you use your solar system. If you own a residential solar system and use it primarily to offset your own electricity consumption through net metering (where you receive credits from your utility company), your system qualifies as non-business personal property and is completely excluded from property taxation. However, if you use your solar system to generate income by selling electricity or claim business depreciation on your tax returns, the system is considered business property and only receives the 80% exclusion. Your county assessor will determine your system’s tax status based on documentation like your tax returns, utility agreements, and system receipts.

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 electricity bills while contributing to a cleaner environment.

While the announcement doesn’t specify exact dollar amounts for individual homeowners, the program focuses on making solar accessible to families who typically face high energy costs as a significant portion of their household budget. The initiative prioritizes low-income and disadvantaged communities, including state and federally recognized Tribal lands. The program combines solar installation with existing energy efficiency efforts to maximize long-term savings for participating families.

The EnergizeNC coalition is led by North Carolina’s Department of Environmental Quality and includes partnerships with Advanced Energy, the NC Clean Energy Technology Center, and the NC Clean Energy Fund. Homeowners interested in this program should visit www.energizeNC.org to stay updated on deployment timelines and application processes, as specific eligibility requirements and application deadlines have not yet been announced.

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 use a Duke Energy-approved Trade Ally installer and choose from approved battery equipment (not all systems qualify). The program has two enrollment options: the residential solar choice rider (RSC) or the net metering bridge rider (NMB). Customers choosing the NMB option must also enroll in Duke Energy’s Power Manager and EnergyWise Home Battery Control programs, which provide additional monthly bill credits in exchange for allowing Duke Energy to temporarily use stored battery power during peak demand periods (30-36 times per year).

Applications are accepted through a random selection process that opens on May 10th, with a four-week application window. Homeowners can sign up for program updates and view eligible equipment lists at duke-energy.com/PowerPair. This pilot program helps Duke Energy manage grid reliability while supporting North Carolina’s clean energy goals and providing financial benefits to participating customers.

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 previous 1-to-1 net metering system and allows homeowners with solar panels to receive credits for excess electricity they send back to the grid. Under NMB, you’ll receive full retail rate credit for solar energy you use directly in your home, but any excess energy exported to the grid each month is credited at a reduced rate of 3.4 cents per kWh.

The financial benefits vary by utility company. Duke Energy Progress customers pay a $28 minimum monthly charge plus $0.62 per kW DC of solar capacity per month, while Duke Energy Carolina customers pay a $22 minimum monthly charge plus $0.28 per kW DC per month. Credits are settled monthly, meaning any unused credits don’t roll over to the next month. To be eligible for NMB, you must have submitted your solar interconnection application starting October 1, 2023, and the program continues until the annual capacity limit is reached. Once that limit is met, new customers will transition to the Residential Solar Choice program, which requires time-of-use billing with critical peak pricing.