Introduction
Since 2007, North Carolina has been a pioneer in renewable energy, measuring progress under the Renewable Energy and Energy Efficiency Portfolio Standard (REPS). According to the Solar Energy Industries Association, the state ranked fourth in the country for installed electric capacities in 2022. To motivate homeowners and business owners, North Carolina and some electrical companies offer various tax incentives, rebates, and programs to ease the costs of installing solar energy systems. This guide explores North Carolina solar incentives available in 2024 to help homeowners make informed decisions about going solar.
State Property Tax Exemption
One of the key North Carolina solar incentives is the State Property Tax Exemption. The North Carolina Department of Revenue exempts photovoltaic systems from taxes if they are owned by individuals and not used for income or business purposes. However, systems installed on company premises are considered business property and are taxable. For more details, visit the North Carolina Department of Revenue.
Low-Interest Loans for Solar Panel Installation
Agricultural producers and rural small businesses in North Carolina can benefit from low-interest loans for solar panel installation. These loans, offered by the Department of Agriculture, cover up to 75% of the total project costs for purchasing and installing solar generation systems. For more information, visit the U.S. Department of Agriculture.
Duke Energy Solar Rebate Program
The Duke Energy Solar Rebate Program provides significant financial assistance to residential, commercial, and nonprofit customers in North Carolina. Homeowners can receive a $0.40-per-watt rebate for systems up to 10 kilowatts, while commercial customers get $0.30 per watt, up to $30,000. Nonprofit customers can enjoy a rebate of up to $0.75 per watt, or $75,000. Eligibility requires being a Duke Energy customer and owning the property where the solar arrays will be installed. For more information, visit the Duke Energy website.
Piedmont Electric Member Corporation Solar Energy Loan Program
The Piedmont Electric Member Corporation offers a Solar Energy Loan Program, providing loans up to $15,000 at a fixed 5% interest rate for seven years. This program supports the purchase and installation of solar water heaters and solar panels. Additionally, the Solar Energy Systems Tax Credit offers credits for solar water heater and solar panel owners, provided that at least half of the system’s energy comes from the sun. More details can be found on the Piedmont Electric Cooperative site.
Federal Solar Tax Credit
The Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), allows homeowners to claim 30% of their total solar system cost as a federal tax credit. This incentive covers solar panels, additional equipment, batteries, labor, and sales tax. Homeowners can qualify if their new solar project is located at their primary residence and they own it. This credit can be claimed once the system is turned on and can roll over for up to five years if the taxes owed are less than the value of the credit. For more details, visit the Department of Energy’s Guide to the Federal Tax Credit for Solar Energy.
North Carolina Net Metering
North Carolina solar tax credits also include net metering, which measures your solar system’s energy surplus and exchanges it with the solar company for credits that reduce your next monthly electric bill. This policy makes home solar systems more affordable and reduces electrical bills, as homeowners can use gathered credits when their system doesn’t generate enough power. For more information, visit the North Carolina Public Staff Divisions.
North Carolina Solar Panels Cost
The cost of installing a 5-kW solar system in North Carolina ranges between $12,452 to $16,848, with an average price of $14,650. The average per-watt cost in North Carolina is $2.54, below the national average of $2.66. The final cost depends on the system size, panel brand and quality, roof type, and installation company.
Is It Worth Going Solar in North Carolina?
Going solar in North Carolina is ideal, given the state’s average of 213 sunny days per year. Selling or exchanging energy excess is profitable, and various state and federal loans and incentives invite more individuals to install solar energy systems. North Carolina's strong solar market, driven by North Carolina solar incentives and policies, makes it a wise investment for homeowners and business owners alike.
Conclusion
In conclusion, solar incentives in North Carolina provide numerous benefits and financial assistance programs that make installing solar energy systems worthwhile. With the right information and resources, you can save significantly on your electrical bills and contribute to a greener future.
