Find out how much you could save in North Carolina!
Why The Federal Credit Expiration and Duke’s NEEC Impacted North Carolina Solar Decisions
Two policy events drove almost all of the change.
The federal residential credit is gone. Section 25D of the tax code, the 30 percent credit you could claim against the cost of a host-owned system, expired for systems placed in service after December 31, 2025. The One Big Beautiful Bill Act of 2025 ended it with no phase-down and no grandfathering. A 2026 cash or loan buyer absorbs the gross installed price in full. The Section 48E commercial credit still flows through third-party-owned systems, so the lessor can claim it and pass some value back, while a homeowner buying their own system gets nothing federal. In North Carolina that path means a lease: the state prohibits residential per-kWh power purchase agreements, so a lease is the only third-party structure on offer.
Duke is no longer a net metering state. Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) closed full-retail one-for-one net metering to new customers on October 1, 2023 under NCUC Docket E-100 Sub 180. New solar customers in Duke territory now take either the flat Net Metering Bridge (NMB) or the time-of-use Residential Solar Choice (RSC). Both credit exported electricity at Duke’s Net Excess Energy Credit (NEEC): 4.53¢ per kWh in DEC and 3.40¢ per kWh in DEP. Retail rates in those same territories run 13.5¢ and 16.4¢ per kWh. Every kilowatt-hour your panels make and you do not use yourself is worth 65 to 80 percent less than one you do use.
Those two facts, layered on top of a $22,600 gross installed price for a household-typical 8.66 kW system, produce a 2026 decision that splits hard along utility lines.
What Duke’s 4.53¢ Export Credit Does To Your Bill And Payback
Net billing rewards self-consumption and punishes export. Until the export credit was lowered, a Duke solar home could send its midday surplus back to the grid for full retail credit and pull cheap nighttime power back at the same rate. With NEEC at 4.53¢ (DEC) or 3.40¢ (DEP), that surplus is now worth a fraction of what it offsets, and the household economics turn on what share of production the home consumes directly.
At the 60 percent self-consumption case, an 8.66 kW NC system produces 12,184 kWh per year, of which 7,310 kWh offsets the home’s own consumption and 4,874 kWh is exported.
Utility / Tariff | Year-1 Savings | Simple Payback | 25-Year Net Savings |
|---|---|---|---|
Dominion NC (1:1 full retail NM) | $1,778 | 12.7 years | $50,800 |
DEP Net Metering Bridge (flat) | $1,365 | 16.6 years | $32,900 |
DEC Net Metering Bridge (flat) | $1,208 | 18.7 years | $26,500 |
DEP Residential Solar Choice (TOU) | $1,116 | 20.3 years | $21,800 |
DEC Residential Solar Choice (TOU) | $1,025 | 22.1 years | $19,100 |
A Dominion customer in eastern North Carolina still gets one-for-one credit on every exported kilowatt-hour, and breaks even just inside year 13 of a 25-year warranty. A DEC NMB customer breaks even at year 19, which is inside warranty but leaves only 6 years of pure savings. A DEC RSC customer at 22 years is trading their warranty horizon for break-even.
Three figures in particular do the work. The retail rate the home self-consumes against, the NEEC the home exports to, and how much of the produced electricity the household uses while it is being produced. Push self-consumption from 60 to 70 percent on the DEC NMB row and payback drops from 18.7 years to 17.2; drop it to 50 percent and payback stretches to 20.6.
That sensitivity is why a battery, an EV that charges during the day, a heat pump, or a pool pump can shift the answer more than another panel.
Where Solar Still Earns Its Keep: Dominion Territory, DEC With PowerPair, And Battery-Backed Duke Homes
In 2026, a clear yes still holds for three kinds of North Carolina homeowner.
Dominion NC customers in the state’s northeast. Dominion Energy North Carolina kept full-retail one-for-one net metering on its residential rate, with a 25 kW residential cap, a $200 interconnection fee under 20 kW, and an annual true-up. Every kilowatt-hour the system produces offsets a retail kilowatt-hour somewhere in the billing year. A 12.7-year payback and a 25-year net of $50,800 puts Dominion at the strongest end of the NC field.
High-consumption DEC or DEP homes that secure PowerPair. Duke’s solar-plus-battery rebate is worth up to $9,000 ($0.36 per watt-AC of solar up to $3,600, plus $400 per kWh of battery up to $5,400). Stacked on the headline 8.66 kW plus 13.5 kWh package, it pulls net cost on the combined system down from $36,100 to $27,100, and pulls combined solar-plus-battery payback into the 15–17 year range for DEC NMB and DEP NMB households, longer for Duke RSC and shorter for Dominion. The catch is capacity. Duke Energy Progress hit its allocation on November 7, 2025 and stopped accepting applications. Duke Energy Carolinas had 7,210 kW remaining of its 30 MW residential allocation as of February 2026 and re-opens enrollment on June 21, 2026.
Long-tenure Duke homes adding storage for resilience. A DEC or DEP household that intends to stay 20 years and values backup during the multi-day outages that follow severe storms can underwrite the longer payback on the resilience value of the battery itself. The pure-arbitrage battery payback runs about 33 years in DEC and 30 years in DEP on Duke NEEC figures, while Power Manager and EnergyWise dispatch credits can add $276 to $1,104 per year on top, and outage coverage is a resilience benefit that doesn’t show up in the payback math.
For all three cases, the gross installed cost in 2026 holds at $2.61 per watt of DC capacity. A deeper look at what an installed system runs in North Carolina breaks it down by size.
Where The Numbers Don’t Work Yet In Duke RSC And Co-Op Territory
For four other situations, the 2026 numbers no longer support a yes.
Duke Residential Solar Choice without a battery. RSC requires a time-of-use rate with critical peak pricing. Midday solar production exports at the 4.53¢ DEC or 3.40¢ DEP NEEC, while evening grid pulls bill at peak. Without a battery to shift production into evening hours, RSC payback runs to 22.1 years for DEC and 20.3 for DEP, longer than most homeowners want to wait and at the outside edge of panel warranty.
Co-op and municipal customers compensated at avoided cost only. North Carolina’s roughly 32 electric cooperatives and municipal utilities are exempt from NCUC ratemaking and set their own export rules, so the credit varies by entity. EnergyUnited buys exports at 5.06¢ per kWh on an avoided-cost basis (NCUC Docket EC-82 Sub 25, effective February 1, 2026), well below the 14.59¢ state-average retail rate it offsets. Some co-ops let members choose: Blue Ridge Energy offers a net-metering option and a net-billing option. Where the export credit lands near avoided cost, the gap between the rate you self-consume against and the credit you receive for export produces a payback longer than the 25-year warranty.
Low-consumption homes anywhere in the state. A North Carolina home that uses 350 kWh per month, a third of the 1,015 kWh state average, runs into a hard floor. The non-bypassable minimum bill ($22 in DEC and $28 in DEP territory) and the per-kilowatt grid charges erode much of the savings, and the system gets sized small enough that the cost-per-watt premium on small installations stretches payback further. Below roughly 350 kWh per month, solar generally does not earn back inside the warranty in Duke territory.
Homes likely to sell within five years. A 16-to-22-year payback is incompatible with a 5-year ownership horizon. Some buyers will pay for the panels at resale, while no NC market data supports a full transfer of remaining lifetime value. Waiting, or going with a lease that transfers cleanly, is the rational call for short-tenure homeowners. Solar in North Carolina pays back over 13 to 22 years depending on the utility, so it suits a homeowner who plans to stay.
A roof within five years of replacement is its own version of the same problem. Most homeowner insurers in North Carolina want a younger roof before they will write coverage with a solar array bolted to it. Replace the roof first, then evaluate.
How PowerPair’s $9,000 Cap And NC’s Lease-Only Rule Reshape Your Options
Three factors decide your 2026 economics: the PowerPair rebate, how you finance the system, and whether you add a battery.
PowerPair is the one large lever left. The $9,000 maximum is the biggest remaining state-side incentive after the federal credit’s expiration. Tracking availability is part of the decision. Duke Energy Progress capped out on November 7, 2025 and is closed to new applicants. Duke Energy Carolinas re-opens enrollment on June 21, 2026 with its remaining 7,210 kW. In DEC territory, your installer has to be a Duke Trade Ally, the system has to pair solar with battery, and the enrollment window matters as much as the system design.
Cash, loan, and lease each produce a different answer in 2026. A cash purchase locks in the lowest 25-year cost and keeps every net-billing credit for the homeowner. With Section 25D expired, the cash buyer absorbs the full $22,600 net price in 2026, and the verdict tracks the per-utility table.
A solar loan works only when the monthly payment stays below the current electricity bill the system offsets. Many 2026 NC loans built for the 30 percent-credit era now show a negative cash flow in early years. Run the actual loan terms against the year-1 savings on your specific utility row.
A lease is the only remaining way for most 2026 buyers to indirectly capture federal money, since North Carolina does not permit residential power purchase agreements. The lessor claims the 48E commercial credit and uses some of it to subsidize lower monthly payments. The trade is real while the contract terms are not generous. Lease escalator clauses run 1 to 5 percent a year (the range the CFPB and EPA report for solar finance products nationally), and over 25 years a 3.5 percent escalator turns a starting payment of $90 a month into $213. Read the escalator before you sign. Our guide to how North Carolina lease offers actually work covers the contract red flags to look for.
Battery economics are now part of the up-front decision, alongside the panel decision. A 13.5 kWh battery shifts about 4,050 kWh per year from export, paid at the Duke NEEC (4.53¢ DEC / 3.40¢ DEP), to self-consumption valued at the 14.59¢ state-average retail rate. That arbitrage value alone runs $407 a year in DEC territory and $453 in DEP, which is uneconomic against $13,500 installed without incentives. With PowerPair’s $5,400 battery rebate and Power Manager dispatch credits, the same battery comes inside an 18-year payback, and the outage-backup value sits on top of that.
For the full state map of current rebates and credits on offer here, the NC incentives guide covers the active programs.
What Pink Energy’s Collapse Taught North Carolina Buyers To Ask
Before you sign anything in 2026, a North Carolina quote should answer six concrete questions.
Are you a Duke Trade Ally for PowerPair? Required if you are in DEC and want the rebate. Listed on Duke’s program page.
What is your North Carolina electrical contractor license number? State law (N.C.G.S. 87-43) requires every residential solar install to be done under a licensed electrical contractor. The North Carolina Board of Examiners of Electrical Contractors confirms status.
Which tariff are you enrolling me on, and why? A reputable installer will run the per-utility numbers for your address and walk you through whether NMB or RSC fits your usage. If they cannot explain why one fits your home better than the other, look elsewhere.
What is the escalator clause on this lease, and what is the 25-year payment total? The escalator is the most overlooked cost in solar finance. A 0 percent escalator is the gold standard. The CFPB and EPA report escalators running 1 to 5 percent a year on these products, so anything near the top of that range should give you pause.
Will my homeowner insurance write the policy with this roof? Many NC insurers want a roof under 15 years old. Get the answer in writing from your carrier before the deposit.
What happens if you go out of business? Pink Energy, formerly Power Home Solar, collapsed in 2022 and left 535 complaints with the North Carolina Attorney General along with stranded warranties. Ask which third party would honor your workmanship warranty if your installer disappears. A real answer is a panel and inverter manufacturer warranty held directly by you, plus a clear named backup for installation defects.
NC’s HOA solar law (G.S. 22B-20) blocks an HOA from prohibiting rooftop solar outright, with limited authority over street-facing or common-area placement. If your HOA is pushing back, the statute is on your side, with limits. The North Carolina Supreme Court reinforced this in Belmont Ass’n v. Farwig in 2022.
For a vetted look at the installers we vet most carefully in the state, the North Carolina best-companies guide covers the local field.
Your 2026 Answer, From Dominion’s 12.7-Year Payback To Duke RSC’s 22.1 Years
The answer is conditional on three things. Your utility, your usage, and your timing on PowerPair.
Yes if you are a Dominion NC customer with a sound roof and any intention of staying 12 years or more. The 1:1 net metering, the 12.7-year payback, and a 25-year net of $50,800 hold up against the loss of the federal credit.
Yes if you are a DEC customer who can secure PowerPair, uses 1,200 kWh or more per month, plans to stay 15 years, and pairs solar with a battery sized for evening self-consumption.
Conditional if you are a DEP customer on the flat NMB rate without PowerPair, which is closed to new DEP applicants. At 16.6 years the payback lands inside the 25-year warranty but leaves a slim margin, so the case turns on whether you hold the home well past year 17. A future PowerPair re-opening or a new state program would move you to a clean yes.
Not yet if you are a Duke RSC customer without a battery, a co-op or municipal customer credited at avoided cost only, or a home using under roughly 350 kWh per month. The 2026 payback does not work for these cases on a cash purchase. A well-priced lease can still work, because the lessor’s 48E credit reaches federal money the homeowner cannot access directly.
No if you are likely to sell the home within five years, your roof needs replacement first, or your installer cannot answer the six questions above.
In short, solar is likely worth it for you in 2026 if you are on Dominion, or on a Duke flat NMB rate with high usage, a battery, and PowerPair lined up, and you plan to stay in the home past the payback year for your utility. It is likely not worth it on a cash purchase if you are on Duke RSC without a battery, on a co-op credited at avoided cost, using under roughly 350 kWh a month, or moving within five years.
Which of the five utility-and-rate buckets your household falls into decides the answer in North Carolina.
Find Your Duke Tariff And PowerPair Status
The per-utility table above is the household-typical case. Your actual usage pattern, your roof, and your zip code all shift the answer. Enter your address to see the per-utility figures for the specific tariff you would enroll on, the PowerPair availability for your service territory as of today, and a per-system-size price band based on current NC quote data.
Find out how much you could save in North Carolina!
Frequently Asked Questions
For Dominion NC customers and high-consumption Duke customers who can secure PowerPair, yes. For most Duke RSC customers, co-op customers, and homes using under roughly 350 kWh per month, no, or not without a lease that captures the 48E commercial credit on the homeowner’s behalf. The federal 25D credit expired December 31, 2025 and has no replacement for host-owned systems.
DEC pays 4.53¢ per kWh for exported electricity (4th Revised Leaves 141/143, effective January 1, 2026). DEP pays 3.40¢ per kWh (Rider NMB-2 RR-36, effective October 1, 2023). Both are set under NCUC Docket E-100 Sub 180. Retail rates in the same territories run 13.5¢ (DEC) and 16.4¢ (DEP), so every exported kilowatt-hour is worth 65 to 80 percent less than one the home self-consumes.
Duke Energy Progress closed PowerPair to new applicants on November 7, 2025 after hitting its allocation. Duke Energy Carolinas had 7,210 kW of its 30 MW residential allocation remaining as of February 2026 and re-opens enrollment on June 21, 2026. The maximum rebate is $9,000 ($0.36 per watt-AC solar up to $3,600 plus $400 per kWh battery up to $5,400).
No. Residential solar electric systems not used for business purposes are effectively excluded from property tax in North Carolina under N.C.G.S. §105-275. The exclusion is permanent under current state law and applies as a matter of law, with no application required for residential non-business installations.
No, with limits. G.S. 22B-20 voids HOA covenants that prohibit or unreasonably restrict residential solar. HOAs may impose reasonable restrictions and may restrict street-facing or common-area placement. The North Carolina Supreme Court upheld these protections in Belmont Ass’n v. Farwig in 2022.
Timelines vary by local building department, since North Carolina has no statewide fast-track. A separate electrical permit is always required, and a building permit applies to projects over the state threshold. No North Carolina jurisdiction has adopted SolarAPP+ instant permitting, so any same-day approval comes from a city’s own portal, such as Raleigh’s, rather than a statewide system. The gating steps are the local inspection and Duke’s interconnection review (Level 1 for most inverter-based residential systems under 25 kW), and the application backlog runs heavier near tariff deadlines.
There is no announced federal residential credit replacement for 25D. The 48E commercial credit phases out for projects placed in service after December 31, 2027 unless construction begins by July 4, 2026, so lease economics are likely better in 2026 than in 2028. Equipment prices have flattened at $2.61 per watt and are unlikely to fall enough to offset a 4 percent annual rate increase from waiting another year on a Duke residential bill.
References & Research Sources
EcoGen America reviewed federal tax guidance, North Carolina net metering materials, state utility commission resources, solar incentive program data, state statutes, utility rate information, electricity price data, solar production modeling tools, consumer protection resources, and electrical licensing guidance for this article. Sources were accessed June 4, 2026, unless another publication, release, effective, or update date is listed below.
- Internal Revenue Service (IRS). Residential Clean Energy Credit. Federal Section 25D tax credit guidance. Accessed June 4, 2026.
- Internal Revenue Service (IRS). FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21. Fact Sheet FS-2025-05. Accessed June 4, 2026.
- North Carolina Utilities Commission (NCUC). Docket E-100 Sub 180: Net Metering. North Carolina net metering docket resource. Accessed June 4, 2026.
- North Carolina Public Staff. Net Metering Overview. North Carolina customer-owned generation and net metering resource. Accessed June 4, 2026.
- Database of State Incentives for Renewables & Efficiency (DSIRE). Duke Energy PowerPair Program. Duke Energy solar and battery incentive program resource. Accessed June 4, 2026.
- Database of State Incentives for Renewables & Efficiency (DSIRE). North Carolina Property Tax Abatement for Solar Electric Systems. State property tax incentive resource. Accessed June 4, 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 4, 2026.
- North Carolina General Assembly. North Carolina General Statutes § 22B-20: Deed Restrictions and Other Agreements Prohibiting Solar Collectors. Homeowners association solar rights statute. Accessed June 4, 2026.
- Dominion Energy North Carolina. Net Metering. Customer-owned generation and net metering resource. Accessed June 4, 2026.
- Duke Energy. DEC North Carolina Rate Case Information. Duke Energy Carolinas North Carolina electric rate case resource. Accessed June 4, 2026.
- U.S. Energy Information Administration (EIA). Electric Power Monthly. Federal electricity generation, sales, revenue, and price data resource. Accessed June 4, 2026.
- National Renewable Energy Laboratory (NREL). PVWatts Calculator. Solar photovoltaic energy production modeling tool. Accessed June 4, 2026.
- North Carolina Department of Justice. Consumer Protection Division. Consumer protection and complaint resource. Accessed June 4, 2026.
- North Carolina State Board of Examiners of Electrical Contractors (NCBEEC). Solar Panel Installation Licensing and Permitting Guidelines. Solar electrical licensing and permitting guidance resource. Accessed June 4, 2026.
- North Carolina General Assembly. North Carolina General Statutes § 87-43: Electrical Contracting Defined; Licenses. Electrical contractor licensing statute. Accessed June 4, 2026.
*EcoGen’s per-utility payback ranges in this article are produced from the EcoGen Solar Cost Index (the per-watt installed price benchmark for North Carolina), the EcoGen Solar Payback Methodology (the 25-year escalation, degradation, and self-consumption framework used to compute each utility row), and the North Carolina State Profile derived figures (average system cost, average bill, average annual production, and rank). The Cost Index is built on the Lawrence Berkeley National Laboratory Tracking the Sun dataset, the U.S. DOE/NREL benchmark, and SEIA / Wood Mackenzie’s quarterly market data as the authoritative reference framework, with current marketplace quote inputs reflecting NC competitive pricing. The Index reports both a competitive price (what an NC homeowner shopping multiple installers can expect) and a typical reported price (the LBNL transacted median, lagged).
