Learn about the North Carolina solar incentives that can help you save big this year.
Are you giving serious consideration to the idea of adding solar panels to your North Carolina home this year? We think that’s a great move since solar is a form of clean energy that can greatly cut your home’s energy costs while also helping the planet.
If you’re a resident who owns a single-family home, there are North Carolina solar incentives available that can help you offset the cost of getting started with solar power. Installing a solar solution can save you a significant amount of money on your electric bill, and the cost of installing a new solar system has become more reasonable for NC homeowners — regardless of whether you take advantage of NC solar incentives. Nonetheless, it’s worth saving as much as you can by taking advantage of any North Carolina solar rebates you are eligible for.
That’s why we put together this guide, so you can see the exact North Carolina solar incentives available this year. While you won’t find North Carolina solar rebates offered directly from the state, it’s still a sunny Southern state that can capture energy through solar panels and a state that cares about solar energy. Here are incentives that are part of the NC solar program, the federal program, and local programs.
North Carolina Solar Tax Credits
The North Carolina Tax Credit ended in 2015. Unfortunately, there is no longer an NC solar tax credit in place for homeowners in the state who want to add solar. Nonetheless, there are other NC solar incentives you can look into.
Low-Interest Loans for NC Solar Panel Installation
North Carolina put legislation into place that supports the state’s counties and cities to offer low-interest loans for the purpose of purchasing solar panels or other energy-related upgrades. The legislation set the terms of the loans to keep the interest rate cap at eight percent with a loan term of 20 years or less. You can easily renew these loans if needed, according to the terms.
North Carolina Net Metering
North Carolina solar power incentives include a net metering policy, so you get credit for extra electricity from your solar energy system. When your system doesn’t make enough power at a later date, you can use the credits you saved up. For example, you may be able to save credits during the hottest months of the summer, while you may need those saved credits during winter months. In North Carolina, net metering programs are offered through Dominion Energy and Duke Energy.
Local North Carolina Solar Incentives
Since there aren’t a ton of state-level solar rebate programs, it’s worth looking into local North Carolina solar incentives.
Asheville Building Permit Rebates
The city of Asheville offers a rebate on the building permit for the installation of your solar panels. This applies to homeowners and businesses that are adding solar to their properties.
Federal Tax Credit for North Carolina Residents
You don’t have to limit yourself to local or state incentives. You can also take part in a federal program through the Investment Tax Credit (ITC). You can qualify for this credit as a homeowner if you purchase your PV system fully with cash or through a solar loan. You claim the credit when you file your federal taxes for the year. This credit covers 30 percent of the total cost this year of 2022 and for the next 10 years. You can see this is a good year to add solar because federal tax credits are available and they provide a huge deduction.
North Carolina Solar Rebate Program
Duke Energy has a solar rebate program for North Carolina residents. Through the NC Solar Rebate Program, homeowners could receive $0.60 per watt for their solar panel systems up to 10 kilowatts. This equates to a $3,600 rebate for a 6 kilowatt system, which is significant savings. It is also a higher rebate than Duke offers for nonresidential buildings in the state, which is $0.50 per watt. However, Duke Energy has capacity limits each year that it splits between the Duke Energy Carolinas service area and the Duke Energy Progress service area. There is an application deadline to participate in the program each year, so be sure to check the website for the current year’s date.
North Carolina Property Tax Exemption
One of North Carolina’s solar incentives is a property tax exemption, so your solar energy system is not included in your property tax assessments. This is the case as long as your system is used for residential energy and has no business purpose. This credit is a benefit you can receive for installing a new system, yet the exemption continues to count year after year as you live in your house. This is good news because you can take advantage of the added property value of solar energy without higher property taxes canceling it out.
For additional information on going solar in North Carolina, check out our free NC Homeowner’s Guide to Solar Installation.
Interested in adding solar panels to your single-family home? We can help you take advantage of any applicable North Carolina solar incentives.