In North Carolina, $0-down solar means a loan or a lease, and what it costs lives in the financing, the incentives that survive the deal, and the red flags behind North Carolina’s documented solar failures.
If you only remember one thing: your two real $0-down options here are a loan or a lease. The third option you will see advertised in other states, the per-kilowatt-hour PPA, is off the table here.
Find out if you're eligible for $0-down solar in North Carolina!
Why “$0-Down Solar” Pitches Are Flooding North Carolina in 2026
Two things changed at once, and together they explain the surge in door-knocks and Facebook ads.
Why North Carolina Buyers Lost the 25D Credit in 2026
For years the headline incentive was the residential clean energy credit, Section 25D, worth 30% of a host-owned system. Under the 2025 budget law (the One Big Beautiful Bill), Section 25D ended for systems placed in service after December 31, 2025. If you buy and own panels outright in 2026, the federal credit you collect is $0.
There is one survivor. Section 48E, the commercial credit, still applies to systems owned by a business, and a registered solar lessor is a business. A lessor can claim 48E and fold some of that value into your lease rate. That makes a lease the only remaining way a North Carolina homeowner touches federal credit money in 2026, and it is a big reason leasing companies are advertising hard right now. The 48E pathway has its own clock: projects must begin construction by July 4, 2026 to lock in the current terms.
Duke’s Pending 11.9% Hike Behind the 2026 Pitch Surge
Higher bills make any “$0 electricity” pitch hit harder. Duke Energy Carolinas and Duke Energy Progress each have a rate case before the Utilities Commission. As filed, Duke Energy Carolinas is seeking an 11.9% increase that would lift the typical residential bill to $162.20, and Duke Energy Progress is seeking an increase that would push its typical bill to $186.95. If approved, the new rates would take effect January 1, 2027, with a hearing set for July 7, 2026. Nothing is final, but the prospect of a double-digit jump is exactly the anxiety the $0-down pitch is built to exploit.
What $0-Down Adds to a North Carolina $22,600 System
Strip away the slogan and a $0-down deal is a financing decision. A representative North Carolina system runs 8.66 kW, which at an installed cost of $2.61 per watt comes to $22,600 before any incentive. You do not avoid that number with $0-down. You move it into monthly payments and, usually, add to it.
What matters is what the financing adds on top of $22,600, who ends up owning the system, and whether the monthly payment is genuinely below what you pay Duke today. For more on system pricing in the state, see our North Carolina solar cost guide.
The Catch Unique to North Carolina: A Per-Kilowatt-Hour PPA Is Off the Table
In sunny-state ads the classic $0-down structure is a power purchase agreement, or PPA: a third party owns the panels on your roof and sells you the electricity they produce at a set price per kilowatt-hour. It is popular because it feels like just swapping one electricity bill for a cheaper one.
That structure is effectively prohibited in North Carolina. State law, N.C.G.S. §62-3(23), bars third parties from making retail electricity sales, and the courts have enforced it. The Faith Community Church case, where a $0.05/kWh church PPA was ruled an illegal utility sale, is the precedent everyone in the industry points to. So if a salesperson offers you a per-kWh PPA in North Carolina, that alone is reason enough to walk: they either do not know the state’s rules or are hoping you do not.
What is legal is a lease. HB 589, the 2017 “Competitive Energy Solutions for North Carolina” law, created regulated solar leasing here, with Commission-registered lessors and consumer protections attached. The difference matters: a lease is a flat monthly fee for the equipment, not a price per kilowatt-hour for the power. Eagle Solar & Light was the first registered lessor in the state, and the active residential lessor pool is still small, with much of the leased capacity going to tax-exempt hosts rather than homeowners.
North Carolina’s Only Legal $0-Down Options: Loan or Lease
Option One: A Solar Loan and North Carolina’s Dealer-Fee Markup
A solar loan keeps ownership in your name, which means you keep the production, the equipment, and any resale value. The trade-off is the dealer fee. Lenders that offer low advertised interest rates recover their margin through a fee baked into the financed principal, and the CFPB found these dealer fees commonly run 30% of the cash price, sometimes more than 50%. In the CFPB’s example, a $30,000 cash system became $39,000 once financed.
Apply that to North Carolina’s representative system. A $22,600 cash price with a 30% dealer fee becomes $29,380 in financed principal. You are paying $6,780 extra to put nothing down, and because §25D is gone, you collect no federal credit to offset it in 2026. A loan still wins on long-run ownership, but only if you go in clear-eyed about the markup.
Option Two: A Lease Under HB 589’s Registered-Lessor Rule
With a lease, the registered lessor owns the system, claims the §48E credit, and charges you a flat monthly fee. The appeal is simplicity and that flow-through of federal credit value you cannot get on your own anymore. The catch is the escalator: lease payments commonly rise 1% to 5% per year, so a payment that beats Duke today can creep up over a 20- or 25-year term. You also do not own the system, which can complicate a home sale. Importantly, leased systems still receive the same net billing treatment as owned systems under HB 589, so you are not giving up the export credit by leasing.
Loan vs. Lease vs. Cash, Side by Side
Factor | Cash Purchase | Solar Loan ($0 down) | Lease ($0 down) |
|---|---|---|---|
Upfront cost | $22,600 | $0 | $0 |
Who owns the system | You | You | The lessor |
Federal credit in 2026 | $0 (25D ended) | $0 (25D ended) | Lessor claims 48E, may pass through |
Added financing cost | None | 30% dealer fee ($6,780) | Annual escalator, 1–5% |
Net billing / NMB / RSC | Yes | Yes | Yes (same as owned) |
Best for | Owners with cash | Owners wanting equity, no upfront | Owners prioritizing simplicity |
A per-kWh PPA is not on this list because it is illegal for North Carolina homeowners. Between the two legal options, choose the loan if you can absorb the dealer-fee markup and want to own the system; choose the lease only if simplicity and the pass-through 48E value matter more to you than ownership, and you have modeled the escalator to year 10.
How PowerPair, Net Billing, and the Property-Tax Exclusion Survive a $0-Down Deal
A $0-down structure changes who pockets each incentive, so it is worth knowing what is on the table and who collects it.
Net billing (the export credit). North Carolina closed full-retail net metering to new applicants on October 1, 2023. New solar customers now fall under net billing, where exports are credited below retail. Under Duke’s Net Excess Energy Credit (NEEC) the export rates are 4.53¢/kWh for Duke Energy Carolinas and 3.40¢/kWh for Duke Energy Progress, against retail rates of 13.5¢ and 16.4¢ respectively. The NC Public Staff net metering page tracks the current structure. That gap between what you pay and what you are credited for exports is the single biggest reason North Carolina paybacks run longer than the glossy ads imply. The current Net Metering Bridge rate is closing to new applicants December 31, 2026.
PowerPair. Duke’s PowerPair pilot pays a solar-plus-battery incentive worth up to $9,000, combining a solar payment (up to $3,600) with a battery payment (up to $5,400). Availability is tight: Duke Energy Carolinas had 7,210 kW remaining of its 30 MW allocation with enrollment resuming June 21, 2026, while Duke Energy Progress is fully allocated and operating a waitlist after closing applications November 7, 2025. On a lease, the lessor captures this; on a loan, you do.
Property tax exclusion. North Carolina excludes 100% of the added home value from residential solar from property tax under N.C.G.S. §105-275(16), and it applies automatically. This one stays with the homeowner regardless of financing.
No sales-tax exemption. North Carolina repealed its residential solar sales-tax exemption effective July 1, 2018, so expect to pay sales tax of 6.75% to 7.5% on equipment. Any pitch claiming a state sales-tax break is wrong.
Battery dispatch programs. If you add storage, Duke’s dispatch programs (Power Manager and EnergyWise) can pay $276 to $1,104 per year. Treat a battery as backup value, not an arbitrage play: standalone battery bill-arbitrage paybacks in North Carolina run 30 to 33 years, well beyond the equipment warranty.
Solar for All. The federal Solar for All funding that would have helped lower-income households is currently paused, so do not count on it when you run your numbers.
For a fuller treatment of every program, see our North Carolina incentives guide.
Who Qualifies in Duke and Dominion Territory: Credit, Roof, and Utility
$0-down still requires a credit approval; it is not a giveaway, and approval depends on your credit score and history rather than any state program. North Carolina sets no statutory credit-score floor for solar financing; lenders and lessors set their own terms, and the strongest rates and lowest dealer fees go to the highest scores.
Beyond credit, the practical qualifiers are a roof in good condition with usable sun exposure, ownership of the home, and a utility territory where the economics work. Duke Energy Carolinas and Duke Energy Progress customers see the net billing structure above; Dominion North Carolina customers in the northeast still keep 1:1 net metering, which materially improves their payback.
When $0-Down Doesn’t Pay Off: Duke’s Export Gap, Movers, and Low Users
Free solar is almost never free, and for some households $0-down is the wrong call even when the credit checks out.
- You plan to move within five years. A loan leaves a balance to settle and a lease leaves a contract to transfer, and neither is a clean handoff to a buyer. If a move is on the horizon, do not buy.
- Your usage is low. Duke’s minimum bill ($22 for Duke Energy Carolinas, $28 for Duke Energy Progress) plus the below-retail export credit means a home using under 350 kWh per month may not reach payback within the 25-year warranty.
- You are chasing battery arbitrage. Storage pays off as backup and dispatch enrollment, not as a 30-plus-year arbitrage bet.
- The offer leans on an escalator you have not modeled. A lease that starts below your Duke bill can climb past it. Run the escalator out to year 10 before you sign.
Realistic paybacks here span a wide range, from under 13 years for a Dominion customer with 1:1 net metering to more than 22 years for a Duke Energy Carolinas customer on the Residential Solar Choice tariff. Where you end up depends heavily on your utility, not on the salesperson’s slide.
How To Read a North Carolina “$0-Down” Offer Before You Sign
North Carolina has a documented scam record, so read every offer like an auditor. Pink Energy, formerly Power Home Solar and based in Mooresville, filed Chapter 7 bankruptcy in 2022 amid a state investigation and hundreds of consumer complaints, and a multistate attorney general coalition asked lenders to suspend payments for affected customers. NC Attorney General Jeff Jackson issued a Preventing and Reporting Solar Scams alert on November 13, 2025. A separate company, GraySquare Solar, has been named in a forged-contract lawsuit.
Before you sign, confirm:
- It is a loan or a lease, never a per-kWh PPA. A PPA offer is illegal in North Carolina, so it should end the conversation.
- The lessor is Commission-registered if you are leasing.
- The dealer fee is disclosed in writing. Ask for the cash price and the financed principal side by side, and do the subtraction yourself.
- The escalator is stated and you have modeled it to year 10.
- The savings estimate uses net billing, not retired full-retail net metering, and uses your actual utility’s export rate.
- The production guarantee and warranty terms survive a company bankruptcy.
Cross-check the company against our North Carolina solar company guide before you commit.
See Whether a Loan or Lease Works for Your North Carolina Home
Enter your ZIP code and current Duke or Dominion bill to see whether a loan or lease makes financial sense for your roof, your utility, and your usage. If you are still deciding whether solar is right for you at all, start with are solar panels worth it in North Carolina.
Find out if you're eligible for $0-down solar in North Carolina!
Frequently Asked Questions
No. “Free solar” means $0 at signing through a loan or lease. You still pay the full system cost over time, and a loan commonly adds a dealer fee of 30%.
No. Per-kilowatt-hour residential PPAs are effectively prohibited under N.C.G.S. §62-3(23), and the courts have enforced it. Your legal $0-down options are a loan or a lease.
Not for homeowners who buy. The residential 25D credit ended for systems placed in service after December 31, 2025. A registered lessor can still claim the commercial 48E credit and may pass some value into your lease rate.
Yes. Residential solar is 100% excluded from property tax under N.C.G.S. §105-275(16), and it applies automatically. There is no longer a state sales-tax exemption, though, so expect 6.75% to 7.5% sales tax on equipment.
North Carolina replaced full-retail net metering for new customers in October 2023. Under net billing your exports are credited below retail (4.53¢/kWh for Duke Energy Carolinas, 3.40¢/kWh for Duke Energy Progress), which lengthens payback compared with the old 1:1 credit.
It depends. A loan keeps ownership and equity but adds a dealer fee and earns no federal credit in 2026. A lease is simpler and passes 48E value to you through the rate, but you do not own the system and payments can escalate 1% to 5% a year.
Get the dealer fee and escalator in writing, confirm the lessor is Commission-registered, reject any per-kWh PPA, and check the company against the NC Attorney General’s solar scam guidance before signing.
References & Research Sources
EcoGen America reviewed federal tax guidance, consumer finance research, North Carolina net metering materials, utility incentive resources, state statutes, consumer protection resources, solar policy databases, third-party solar financing guidance, utility rate case materials, and clean energy policy research for this article. Sources were accessed June 10, 2026, unless another publication, release, effective, or update date is listed below.
- Internal Revenue Service (IRS). One Big Beautiful Bill Provisions. Federal tax guidance resource. Accessed June 10, 2026.
- Consumer Financial Protection Bureau (CFPB). Issue Spotlight: Solar Financing. Consumer finance research report on residential solar financing. Accessed June 10, 2026.
- North Carolina Public Staff. Net Metering and Net Billing. North Carolina customer-owned generation and net billing resource. Accessed June 10, 2026.
- Duke Energy. PowerPair. Residential solar and battery incentive program resource. Accessed June 10, 2026.
- North Carolina General Assembly. North Carolina General Statutes § 105-275: Property Classified and Excluded from the Tax Base. Property tax exclusion statute. Accessed June 10, 2026.
- North Carolina Department of Justice. Attorney General Jeff Jackson Sues to Win Back More Than $150 Million to Lower North Carolinians’ Energy Costs. Consumer protection and energy cost enforcement announcement. Accessed June 10, 2026.
- North Carolina General Assembly. North Carolina General Statutes § 62-3: Definitions. Public utility definitions statute. Accessed June 10, 2026.
- North Carolina General Assembly. House Bill 589: Competitive Energy Solutions for North Carolina. Solar leasing and distributed energy policy framework. Enacted 2017. Accessed June 10, 2026.
- North Carolina Supreme Court. State ex rel. Utilities Commission v. North Carolina Waste Awareness and Reduction Network. Third-party power purchase agreement ruling. Accessed June 10, 2026.
- Database of State Incentives for Renewables & Efficiency (DSIRE). North Carolina Solar Incentives and Policies. State solar incentive and policy database. Accessed June 10, 2026.
- U.S. Environmental Protection Agency (EPA). Solar Leasing and Power Purchase Agreements. Green power financing and procurement guidance resource. Accessed June 10, 2026.
- Solar Energy Industries Association (SEIA). Clean Energy Provisions in the One Big Beautiful Bill. Clean energy policy analysis. Accessed June 10, 2026.
- North Carolina Utilities Commission (NCUC). Duke Energy Rate Cases. Docket E-7, Sub 1329, and Docket E-2, Sub 1380. Accessed June 10, 2026.
- North Carolina General Assembly. North Carolina General Statutes § 105-164.13: Retail Sales and Use Tax Exemptions. Sales and use tax exemption statute. Accessed June 10, 2026.
