✅ Federal Incentives
All federal benefits apply to entities in North Carolina.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Property Tax Exemption
North Carolina offers a 100% property tax exemption for residential solar systems. This means that installing a solar system will not increase your property's assessed value for tax purposes. For commercial properties, the exemption is 80%.
⚡ Sales Tax Exemption
The state provides a sales tax exemption for solar energy systems, reducing the upfront cost by eliminating the 4.75% state sales tax on the purchase of solar equipment.
⚡ Duke Energy Solar Rebate Program
Duke Energy offers rebates to customers who install a home solar power system. The program offers homeowners a 40-cent-per-watt rebate for systems up to 10 kW. For businesses, the rebate is up to 30 cents per watt with a maximum of $30,000. Nonprofits can receive up to 75 cents per watt or a maximum of $75,000. Applications are accepted on a first-come, first-served basis.
⚡ Piedmont Electric Solar Loan Program
Piedmont Electric Corporation offers solar loans of up to $10,000 with seven-year terms at a 5% interest rate for qualifying customers. This program is available for solar installations and other energy efficiency upgrades.
✅ Utility Incentives
⚡ Net Metering
North Carolina offers net metering for solar power systems of up to 1,000 kW capacity. Homeowners can receive credits for excess electricity generated by their solar systems, which can offset future electricity bills. Credits may expire annually, depending on the utility provider.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
North Carolina offers a combination of federal incentives, state tax exemptions, utility rebates, and financing options to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits.