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North Carolina Solar Incentives

North Carolina Solar Incentives

This week we are looking at the potential for solar energy in North Carolina. 

North Carolina Solar Incentives

North Carolina solar incentives, policies, and programs offered at the state and federal levels make it a promising state for a solar energy revolution. Not to mention that North Carolina has great weather for solar energy! 

The Cost of Solar

First, it is crucial to consider the price of a photovoltaic solar system in North Carolina. A 6-kilowatt system, on average, costs 17,400 dollars before incentives. A larger 10-kilowatt residential system costs approximately 28,700 dollars. Consider that these costs do not include the purchase of a battery, which many solar owners chose to purchase.  

While these prices might seem very high, North Carolina’s many incentives make going solar an attractive choice. Additionally, as energy prices continue to rise, solar energy is becoming the clear choice for saving on your electric bill!

Rebates

Duke Energy offers a 60 cent per watt rebate for systems up to 10 kilowatts. On average, residential customers save about 3,600 dollars. Non-residential rebates are slightly less, at 50 cents per watt, however, because of the sheer size of these systems, savings can be as high as 50,000 dollars. It is also important to know that non-profits can receive 75 cents per watt and save up to 75,000 dollars.  

As of 2021, however, Duke Energy is experiencing a shortage of funds for rebates, and currently requires customers to join a waitlist to receive solar rebates.  

Loans and Investment Tax Credits

Loan options for solar are also appealing in North Carolina as legislation allows for low-interest loans (capped at 8%) and no longer than 20 years.  

The federal tax credit, or investment tax credit (ITC) is one that you might be familiar with if you live in the US and have considered going solar. With the ITC, it is possible to reduce the cost of your system by 26%. However, this credit is limited to those who buy their photovoltaic solar system with a cash purchase or an outright solar loan.  

State Property Exemption

In North Carolina, there is also a state property tax exemption for solar system owners. Installing a solar system can increase your property value, but it can also increase your property taxes. With the property tax exemption, homeowners using the system for residential purposes do not have to pay tax on their solar system. This exemption does not apply to businesses or for profitable purposes. 

Net Metering

Finally, Dominion Energy and Duke Energy both offer net metering programs that give utility credit to solar system owners whose system produces a surplus of electricity. The excess electricity produced gets sent back to the grid, and you receive credits that can be used when there is a shortage of power generated from your solar system.  

Ready to learn more about solar and get started yourself? Click here!
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