North Carolina is a leading state for solar energy generation, with over 9.75% of the state's electricity coming from solar power, according to the Solar Energy Industries Association (SEIA). For comparison, South Carolina gets just 3.5% of its electricity from solar.
A significant part of North Carolina's solar success comes from strong government support for clean energy. This includes a solid Renewable Energy and Energy Efficiency Portfolio Standard and net metering programs, which help residents and businesses save on their electric bills.
The residential solar market, in particular, has seen impressive growth, driven in part by North Carolina solar incentives. Programs like Duke Energy’s PowerPair, which offers up to $9,000 for solar installations with battery storage, are accelerating the adoption of solar panels in the state.
With more than a decade of experience in the North Carolina solar energy industry, GreenLancer has seen firsthand how these programs are helping drive further growth and making solar energy more accessible for homeowners and businesses alike. Read on to gain insights on North Carolina solar incentives.
Solar Panels in North Carolina
There are 9,723 MW of installed solar energy capacity in the state, enough to power almost 1.2 million homes. The cost of installing solar panels in North Carolina has fallen by 43% over the last decade, and there are more than 55,072 solar installations in the state.
Considerations for Installing Solar Panels in North Carolina
When thinking about installing a solar panel system in North Carolina, there are a few key factors to keep in mind. These can greatly influence how much electricity your system generates and how much you save on utility bills.
Despite having good solar resources, not all residential and commercial properties are well suited for solar panels in North Carolina. Many potential issues can be identified when conducting a solar site survey or perhaps before screening leads.
Shading is one of the most common issues, with trees, buildings, and chimneys casting shadows that reduce energy output. For solar panels in North Carolina, midday shading tends to have the most significant impact on energy production.
The age and condition of the roof are crucial considerations for rooftop solar systems. Solar panels typically last for 25 to 30 years, so it's important to ensure the roof is in good condition and won't need replacement soon. If so, it’s best for the customer to replace the roof before installing the PV panels.
Various financial factors are important considerations, such as the upfront cost of the solar system, available rebates and North Carolina solar incentives, potential tax benefits, financing options, and the estimated payback period.
It's essential to research and understand the local regulations, solar permitting process, and any homeowners association rules related to solar panel installations. Unfortunately, residential solar panel permitting and interconnection in North Carolina can be relatively slow.
GreenLancer is skilled in solar system design and permitting, ensuring that solar systems comply with North Carolina solar permit requirements. Create a free account to shop for our solar plan sets and engineering services.
Solar Panel Costs In North Carolina
According to EnergySage, as of September 2024, solar system costs in North Carolina are slightly lower than the U.S. average, at about $2.55 per watt installed before incentives. According to the Lawrence Berkeley National Laboratory, the average size of a residential solar system in North Carolina is 7.8 kW, which is slightly smaller than the national average. Therefore, the average residential solar panel system cost is about $19,890 before North Carolina solar incentives.
The average solar payback period for a residential solar panel system in North Carolina is around 11.5 years, according to EnergySage. The payback period is a bit longer than the national average of 7 or 8 years. This is because although North Carolina has an excellent solar resource, it has relatively low-cost electricity.
The average residential electricity rate is 14.75 cents per kWh in North Carolina, compared to 16.21 cents per kWh nationally, according to the Energy Information Administration data for October 2023. Likewise, the average commercial electricity rate is 13.9 cents per kWh in North Carolina, compared to 16.6 cents per kWh nationally.
Because electricity rates are slightly lower, a solar panel system in North Carolina results in lower electric bill savings. However, these are state averages and may vary by the utility company.
North Carolina Solar Incentives
Homeowners and businesses can qualify for a variety of solar energy incentives in North Carolina that help reduce the total cost of a solar panel system or boost eligible energy bill savings.
Federal Income Tax Credit
The Investment Tax Credit (ITC) is a valuable federal incentive that supports renewable energy adoption across the United States, including in North Carolina. As one of the biggest North Carolina solar incentives, the ITC helps make installing solar panels and other renewable energy systems more affordable for homeowners and businesses.
This program allows eligible taxpayers to claim 30% of their qualified renewable energy expenditures as a federal tax credit. To claim the credit, individuals should file IRS Form 5695, "Residential Energy Credits," with their federal tax return.
For North Carolina residents considering solar energy, the ITC provides a meaningful opportunity to reduce installation costs. To ensure eligibility and maximize benefits, it’s best to consult with a qualified tax specialist for guidance on how to apply for this federal solar tax credit.
State And Local North Carolina Solar Incentives
There are several local incentives to help encourage solar energy use in North Carolina. However, the North Carolina solar rebate program through Duke Energy has ended.
Duke Energy’s PowerPair Program
Launched in May 2024, this North Carolina solar incentive offers up to $9,000 for residential customers who install solar panels paired with battery storage. It encourages homeowners to add energy storage to their solar setups, helping reduce their reliance on the grid while contributing to a cleaner energy future. The PowerPair Program may have a waitlist while determining if the solar incentive funds have been exhausted.
Piedmont Solar Loan Program
The Piedmont Electric solar loan program provides members with a convenient and affordable way to finance their solar panel system. This North Carolina solar incentive supports members in adopting sustainable and cost-effective solar solutions for their homes or businesses. Currently, it is offering solar loans of up to $15,000 for seven years with an interest rate of 5%.
Solar Permit Fee Rebate In Asheville
The City of Asheville, North Carolina, offers a $175 rebate for the permitting fees for solar energy systems. However, this incentive is only offered for projects within Asheville city limits.
Net Metering in North Carolina
North Carolina utility companies offer net metering to customers with solar energy systems. This allows them to receive utility bill credits for surplus solar electricity they supply to the utility grid. To participate in net metering in North Carolina, residential and commercial utility customers must submit interconnection paperwork to Duke Energy or the local electric company and receive permission.
North Carolina utility companies provide net metering programs for customers with solar energy systems, offering an excellent way to maximize the value of your solar investment. Through net metering, customers earn utility bill credits for any surplus solar electricity their system sends to the grid.
To participate in net metering in North Carolina, residential and commercial customers need to complete interconnection paperwork with Duke Energy or their local electric utility. Once approved, they can start benefiting from this valuable North Carolina solar incentive while contributing clean energy to the grid.
Solar Property Tax Abatement in North Carolina
Installing a solar system can significantly increase property values. However, this property tax abatement law exempts 80% of the value of the solar system from increasing the property taxes. This helps reduce the cost to your customers of owning a solar panel system.
Community Solar
Due to House Bill 589, Duke Energy and Duke Progress must have community solar farms available to customers on a first-come-first-serve basis. Multiple households or businesses can become subscribers to a community solar farm and receive utility bill credits for the solar energy that is generated at community solar farms.
Duke Energy Solar Rebate Program
The Duke Energy solar rebate program once incentivized customers to adopt solar energy by providing financial rebates for solar installations. Customers who installed solar panels received a rebate based on the system's capacity. Unfortunately, this North Carolina solar incentive program is no longer accepting applications, closing its doors to new participants.
Large Solar Panel Systems In North Carolina
There are numerous utility-scale solar farms in the state that generate considerable renewable power.
SunEnergy developed the 150.6 MW Albermarle Beach Solar project in Roper, operational since 2020, providing electricity for 17,988 homes.
Meta, Fifth Third Bank, and Starbucks have adopted solar in North Carolina. Meta's 119 MW Gutenberg project in Garysburg is a state leader.
BayWa r.e. completed the 134 MW Fern Solar in Battleboro in 2020, powering over 16,005 homes.
FAQs About Using Solar Power & North Carolina Solar Incentives
Let’s examine some of the FAQs we hear about installing solar power systems in the Tar Heel State.
What North Carolina solar incentives are available?
North Carolina offers several solar incentives, including Duke Energy’s PowerPair program, which provides up to $9,000 for solar with battery storage, and the Solar Property Tax Exemption, which excludes 80% of the value of solar installations from property taxes. Asheville also offers a $175 rebate for solar permitting fees.
Are solar panels worth it in North Carolina?
Yes, solar panels are likely worth it for homeowners and businesses in North Carolina. The state has abundant sunlight, so it is a favorable location for solar energy generation. Also, North Carolina solar incentives, such as net metering and solar property tax exemptions, make solar panels a cost-effective and environmentally friendly investment.
Does North Carolina have a solar tax credit?
North Carolina no longer offers a state solar tax credit, but residents can still take advantage of the federal Investment Tax Credit (ITC). The ITC provides a 30% tax credit on solar installation costs.
The state also offers an 80% Solar Property Tax Exemption. This means most of the value added by solar panels is exempt from property taxes, making it a valuable North Carolina solar incentive.
Are there free solar panels available in North Carolina?
While there are North Carolina solar incentives for homeowners and businesses, truly free solar panels aren’t available. Some companies advertise free solar panels, but these usually involve solar lease or power purchase agreement (PPA) programs. With these, participants pay a monthly lease fee instead of upfront costs.
Are there solar tax credits in North Carolina?
North Carolina solar incentives include the federal solar tax credit, which is available to residents and businesses. This credit covers 30% of the total cost of a solar power system, including panels, inverters, racking systems, and labor. While North Carolina doesn’t offer a state-specific tax credit, the federal incentive is a significant benefit for both residential and commercial solar projects.
How many solar industry jobs are there in North Carolina?
There are more than 7,300 jobs in the solar industry in the state, according to the Solar Energy Industries Association. In particular, the state is a leader in utility-scale solar energy installations.
How can I become a solar installer in North Carolina?
There are numerous ways to become a solar panel installer, including on-the-job training or taking solar installation classes. The North Carolina Clean Energy Technology Center offers courses in solar PV design and installation, solar storage, and operations and maintenance of solar systems. In addition, there are online solar training programs available through Solar Energy International and the North American Board of Certified Energy Practitioners.
What areas of North Carolina have the most solar installations?
The distribution of solar systems in North Carolina can vary, but several regions are notable for high solar adoption. The Piedmont and Research Triangle areas, including cities like Raleigh, Durham, and Chapel Hill, have seen significant growth in solar installations. Additionally, Charlotte and its surrounding areas have also experienced substantial solar development.
What regions of North Carolina are best for solar panels?
The western and central parts of the state tend to receive more sunlight, making them relatively sunnier than the eastern regions. Cities like Charlotte, Asheville, and Raleigh experience a good amount of sunlight throughout the year. However, sunlight patterns can vary, and factors such as local geography and weather conditions also play a role.
What companies install solar panels in North Carolina?
Several solar companies operate in North Carolina, including:
Strata Solar: Based in Chapel Hill, Strata Solar is a leading solar developer with a significant presence in North Carolina.
Freedom Forever: A residential installer, Freedom Forever has a growing presence in North Carolina, emphasizing customer service and financing options.
SunEnergy1: SunEnergy1 is a solar energy company with projects in North Carolina, including large-scale solar farms.
Renu Energy Solutions: Renu Energy Solutions focuses on residential and commercial solar installations in North Carolina.
NC Solar Now: This company specializes in residential and commercial solar installations, providing tailored solutions to meet customer needs.
Solar Energy Has Huge Potential In North Carolina
Similar to Florida, Texas, and Virginia, North Carolina has a strong solar energy market due to ample solar resources and North Carolina solar incentive programs. There are currently a lot of utility-scale solar farms, but there is huge potential in the residential and commercial solar sectors as well. If you are looking to expand the service area of your solar company, North Carolina might be an excellent market.
Keep in mind that GreenLancer’s network extends to all 50 states, so you can partner with us for solar permitting and engineering services in North Carolina and beyond. Complete the form below to learn more about our permit-ready plan sets, engineering reviews, and interconnection applications.
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