North Carolina Solar Incentives & Rebates (2026)
North Carolina offers property tax exemptions (80% of solar system value added to home), net metering at retail rates, and utility-specific rebates from Duke Energy averaging $1,500-$2,000—creating first-year savings of $6,500-$9,000.
North Carolina’s solar incentive landscape centers on Duke Energy (serving 7.8 million customers across the state) and several municipal utilities. The state eliminated its solar tax credit in 2016, but compensates with advantageous property tax exemptions (80% of system value excluded from assessment) and Duke Energy’s robust rebate program. Excellent solar resources (5.0 peak sun hours daily) and strong net metering policies create attractive payback periods of 7-9 years.
Federal Solar Investment Tax Credit (30% ITC)
The federal solar investment tax credit covers 30% of total installation costs for systems installed through December 31, 2032. For a typical $30,000 residential system, this represents a $9,000 tax credit. The credit is non-refundable but can be carried forward to subsequent tax years.
North Carolina State-Specific Solar Programs
Property Tax Exemption (80% of System Value Added to Home)
North Carolina’s property tax exemption excludes 80% of the system’s value when calculating property tax increases. A $25,000 system adds only $5,000 to assessed home value. This effectively saves approximately $200-$320 annually for most homeowners.
Sales Tax Exemption
North Carolina exempts solar equipment from the 4.75% state sales tax, though local additions (up to 2.75%) still apply. The exemption saves approximately $1,200-$1,600 on typical installations.
Net Metering at Retail Rates
North Carolina mandates retail-rate net metering for residential systems under 25 kW. Exported energy credits at your utility’s residential rate (typically $0.11-$0.14/kWh).
No State Income Tax Credit
North Carolina’s state solar tax credit expired on December 31, 2015. The state has not renewed it.
Utility-Specific Rebate Programs in North Carolina
Duke Energy Carolinas Solar Rebate Program
Residential customers receive $1,500-$2,000 for systems under 10 kW. Systems 10-25 kW receive $2,000-$2,500. Duke Energy has budgeted $145 million for solar rebates through 2028.
Duke Energy Progress Solar Rebate
Duke’s Progress subsidiary (eastern North Carolina) offers similar rebate tiers: $1,500-$2,000 for systems under 10 kW. Application processing averages 6-8 weeks.
City of Charlotte Solar Rebate
Charlotte municipal customers receive additional $500-$750 rebates beyond Duke Energy programs.
Raleigh and Greensboro Municipal Incentives
Individual cities offer modest rebates of $300-$600 plus expedited permitting.
Solar Incentive Summary Table for North Carolina
| Incentive Type | Details | Typical Value (6 kW System) |
|---|---|---|
| Federal ITC (30%) | Non-refundable tax credit through 2032 | $5,400-$7,200 |
| Property Tax (80% exempt) | 80% of value excluded | $5,000-$8,000 (25-year) |
| Sales Tax Exemption | 4.75% state tax exempt | $1,200-$1,600 |
| Net Metering | Retail rate, monthly true-up | $600-$1,800/year |
| Duke Energy Rebate | Funded through 2028 | $1,500-$2,500 |
Frequently Asked Questions About North Carolina Solar Incentives
Why does North Carolina exclude only 80% of solar system value from property tax?
North Carolina’s approach differs from most states, which exclude systems entirely. The state’s rationale is that solar systems do add some home value. Excluding 80% represents a compromise. The net savings are still approximately $5,000-$7,000 over 25 years.
How competitive is Duke Energy’s $1,500-$2,000 rebate?
Duke’s rebate is among the most generous for utilities nationwide and is backed by long-term funding commitments. Combined with property and sales tax exemptions plus net metering, Duke customers enjoy approximately $8,000-$10,000 in first-year incentives.
Should I wait for North Carolina to reinstate its state solar tax credit?
North Carolina’s credit expired in 2015, and there’s been minimal legislative movement toward reinstatement since 2018. Current incentives (Duke rebates, property tax exemptions) are already substantial.
Does Duke Energy’s rebate apply to batteries paired with solar?
Duke’s residential solar rebate applies to PV systems. Battery incentives are listed separately and vary by program. Inquire about Duke’s most current battery incentives when requesting quotes.
Start Your North Carolina Solar Journey
Solar incentives are substantial in 2026. Federal tax credits decrease by 2 percentage points annually after 2032, making 2026-2032 the optimal window.
Connect with qualified solar installers in North Carolina through EnergyRanked’s solar installer directory. Our network includes pre-vetted, licensed professionals familiar with state incentives.
For detailed information about the federal tax credit, consult our comprehensive solar tax credit guide. Return to our parent solar incentives hub to compare North Carolina programs with other states.