This guide will walk you through all the major solar incentives and policies available to North Carolina residents in 2025. We’ll clarify how each program works, who’s eligible, and how they contribute to your solar investment.
Find out what North Carolina programs are available to you!
Federal Solar Incentives: The Investment Tax Credit (ITC)
The most significant financial incentive for homeowners nationwide is the federal Solar Investment Tax Credit (ITC). This is a dollar-for-dollar credit that directly reduces the amount of federal income tax you owe.
- Credit Amount: For systems installed between 2022 and 2032, the ITC allows you to claim 30% of the total cost of your solar energy system.
- Impact: On a $20,0.00 solar system, the 30% ITC provides a $6,000 credit, effectively lowering your net cost to just $14,000.
North Carolina’s State & Local Solar Incentives
North Carolina’s primary incentive is a direct rebate from its largest utility, Duke Energy.
Name of Incentive | Type | Description | Key Details | Estimated Cash Value |
Federal Solar Tax Credit | Federal Tax Credit | A 30% credit on the total cost of your system against your federal income taxes. | The most significant financial incentive available. | $4,200 – $7,800 |
Duke Energy Solar Rebate | Utility Rebate | A one-time rebate of $0.60 per watt for systems up to 10 kW. | Limited capacity and highly competitive. Acting fast is crucial. | Up to $6,000 |
Property Tax Exemption | Local Tax Exemption | A local-option exemption on the value added to your home by a solar system. | Your property taxes may not increase. | Varies (By locality) |
Net Metering | Utility Bill Credit | Earn credits on your utility bill for excess electricity your system sends to the grid. | Maximizes the value of every kWh you produce. | Varies |
Duke Energy Solar Rebate Program
- How it Works: For customers of Duke Energy Carolinas and Duke Energy Progress, this program offers a significant cash rebate for installing a residential solar system. The rebate is calculated at $0.60 per watt, for systems up to 10 kilowatts (kW) in size. The program has a limited annual capacity and is highly competitive, so it’s essential to work with an installer who can submit your application as soon as the program opens for enrollment.
- Impact: This is a powerful, direct reduction in your system’s price. A homeowner with a 10 kW system could receive a $6,000 rebate, which is paid directly to you after the system is installed and approved.
North Carolina Property Tax Exemption for Solar
- How it Works: North Carolina state law allows individual cities and counties to offer a property tax exemption for the value added by a solar system.
- Impact: In participating localities, this is a significant long-term benefit that saves you hundreds of dollars every year. The best way to get clear information on your specific locality is to work with a qualified local installer.
Utility-Specific Solar Programs in North Carolina
Net Metering
- How it Works: Net metering is a critical policy that ensures you get full value for every kWh your system produces. When your panels generate more power than you are using, the excess is sent to the grid, and you receive a credit on your bill from your utility.
- Impact: Net metering maximizes your bill savings and is the foundation of the financial return for solar in North Carolina.
Find out what North Carolina programs are available to you!
Understanding the Full Cost of Solar
To appreciate how these powerful incentives work, it’s important to understand the total cost of a solar project they are designed to reduce. A full quote will include the cost of panels, equipment, and expert installation, all of which are eligible for these valuable programs.
For a detailed breakdown, see our complete guide on The Cost of Solar Panels in North Carolina.
Are Solar Panels Worth It in North Carolina?
The available financial incentives are a key reason why solar is a worthwhile investment in North Carolina. By combining the 30% federal tax credit with the Duke Energy rebate, homeowners can significantly lower their net cost.
To see a full financial breakdown, read our detailed analysis: Are Solar Panels Worth It in North Carolina?.
How To Get Solar With No Upfront Cost
Financing options like $0-down solar loans are especially powerful because they allow you to own your system and claim all of the valuable incentives, including the federal tax credit and the Duke Energy rebate.
Our complete guide, How To Get Free Solar Panels in North Carolina, breaks down how these options work.
Why Your Choice of Installer is Critical
A top-tier installer in North Carolina will be an expert in the Duke Energy rebate program and your utility’s interconnection process, ensuring you get every dollar of savings you are entitled to.
Our guide to the Top Solar Companies in North Carolina explains exactly what to look for.
How EcoGen America Simplifies Your Solar Journey
Navigating tax credits and utility programs can be confusing. EcoGen America makes it simple. We connect you with our network of trusted, pre-vetted local installers in North Carolina who are experts in all available incentives and provide transparent, no-obligation quotes.
Find out exactly what incentives you qualify for.
Find out what North Carolina programs are available to you!
Frequently Asked Questions
No, the North Carolina state solar tax credit expired in 2015 and has not been renewed. The primary incentives are the federal tax credit and the Duke Energy rebate.
No. The program has a limited annual capacity and is available on a first-come, first-served basis. It is crucial to have your application submitted by a qualified installer as soon as the program opens.
No. This is a local-option exemption. You must check with your city or county’s tax office to determine if it is offered in your area.
Sources & References:
- SEIA (Solar Energy Industries Association) – U.S. Solar Market Insight: https://seia.org/research-resources/us-solar-market-insight/
- SEIA (Solar Energy Industries Association) – North Carolina Solar Policy: https://seia.org/state-solar-policy/north-carolina-solar/
- Energy.gov (U.S. Department of Energy) – Homeowner’s Guide to Going Solar: https://www.energy.gov/eere/solar/homeowners-guide-going-solar
- IRS (Internal Revenue Service) – Form 5695, Residential Energy Credits: https://www.irs.gov/forms-pubs/about-form-5695
- NREL (National Renewable Energy Laboratory) – Annual Technology Baseline (ATB) for Solar: https://atb.nrel.gov/electricity/2024/residential_pv
- EIA (U.S. Energy Information Administration) – North Carolina State Energy Profile: https://www.eia.gov/state/?sid=NC
- DSIRE (Database of State Incentives for Renewables & Efficiency) – North Carolina Programs: https://programs.dsireusa.org/system/program/nc/solar
- Duke Energy – NC Solar Rebate Program: https://www.duke-energy.com/home/products/renewable-energy/nc-solar-rebates
