Does North Carolina have a solar tax credit

Does North Carolina have a solar tax credit? Solar energy installation in North Carolina can be expensive, ranging from $11,348 to $15,352, according to our research on the top solar companies in the United States. However, various tax incentives can help lower these costs and increase your savings.

Guides Home Team has put together a guide that explains the federal and state incentives for solar energy available to residents in North Carolina, also known as the Tar Heel State. This guide aims to make it easy for you to understand how you can take advantage of these incentives and make solar energy more affordable for your home.

North Carolina Solar Tax Rebates and Credits

To enhance the accuracy of your cost and savings estimates, it’s crucial to identify the tax credits and incentives you qualify for. Solar installers can assist you in understanding and applying for these programs. Here are some key ones in North Carolina.

Duke Energy Solar Rebate Program

Credit Type: Utility Company Credit

Duke Energy extends its solar rebate program to various states, but regrettably, it’s solely available in North Carolina. The program caters to residential, commercial, and nonprofit customers, albeit with a notable waiting list. Patience, however, can pay off. Here’s a breakdown of what’s on offer:

  • For Residential Customers: A 40-cent per watt discount, translating to an average savings of $2,000 for a typical 5-kilowatt system.
  • For Commercial Customers: A rebate of 30 cents per watt, with a cap at $30,000.
  • For Nonprofit Customers: A higher rebate of 75 cents per watt, up to a maximum of $75,000.

To check your eligibility, initiate the application process on the Duke Energy website.

Solar Electric Systems: Property Tax Reduction

Credit type: State tax exemption

In North Carolina, there’s a 100% exemption from property taxes for solar installations in residential homes. This means your annual property tax won’t go up, even as the value of your home increases due to the solar installation.

It’s important to note that this property tax exemption applies only to active solar installations. Passive solar installations like sunrooms or greenhouses do not qualify. For non-residential solar installations, there’s an 80% exemption from property taxes.

To check if you qualify for these exemptions, visit the North Carolina Department of Revenue website.

Piedmont Electric Member Corporation Renewable and Solar Energy Loan Program

Credit type: Utility company loan

The Piedmont Electric Membership Corporation (PEMC) offers a loan for renewable energy to assist in financing the purchase of a solar energy system. Members can also use this loan to make home upgrades for increased energy efficiency.

This loan covers the following improvements:

  • Addition of a high-efficiency electric heat pump
  • Additional insulation
  • Central A/C systems
  • Photovoltaic panels
  • Solar water heating
  • Replacement of windows and doors

Members who meet the criteria may be eligible for a loan of up to $10,000 over a seven-year period, with a fixed rate of 5%. For more information, reach out to PEMC.

PSNC Energy Green Discount Rate

Credit type: Utility rate discount

PSNC provides discounts to customers meeting specific energy efficiency criteria. To qualify, residential customers must furnish a certified professional’s statement affirming that their home’s energy usage is equivalent to or less than that of an EnergyStar-certified home. For additional details, visit the PSNC website.

Net Metering in North Carolina

Net metering programs in North Carolina allow you to “sell” excess energy your system produces to the grid, leading to lower future electric bills. The state permits net metering up to 1 megawatt (MW), suitable for most residential, commercial, and industrial solar setups.

Here are some important points about net metering in North Carolina:

  1. Account Balances Have Expiry: The balances in your accumulated accounts have a limited duration.
  2. Leased Solar Systems Qualify: Even if you lease your solar system, you are eligible for net metering benefits.
  3. Credit for Surplus Electricity: Any surplus electricity your system generates will be credited to your next electric bill.
  4. Optimal Sizing Maximizes Benefits: It’s crucial to ensure your system is optimally sized to make the most of net metering. This way, you generate electricity that effectively reduces your future bills.

The surplus electricity you generate won’t directly subtract from your bills. Instead, it accumulates as credits, emphasizing the need to size your system correctly for maximum benefits.

Federal Solar Tax Credit

Residents in North Carolina can take advantage of the Federal Solar Investment Tax Credit, which provides a 30% reduction in taxes. This benefit is available from 2022 to 2032. After 2032, the rate decreases to 26% in 2033 and further drops to 22% by 2034.

If you’ve fully purchased a solar system or obtained a loan for it, you qualify for the Investment Tax Credit (ITC). However, if you have a Power Purchase Agreement (PPA) or lease your system, the ITC is not available to you.

North Carolina Solar Incentives FAQs

Is North Carolina a good place for solar energy?

North Carolina boasts ample sunshine, making it an ideal location for solar energy. The state actively promotes solar adoption through incentives like tax credits, net metering, and utility benefits. Over the past decade, the cost of solar panels has dropped by 50% in North Carolina.

Is there a tax credit for solar energy in North Carolina?

No, North Carolina doesn’t provide a statewide tax credit for solar energy. However, local tax credits may be available depending on your location. Residents can still benefit from the 30% federal tax credit for solar energy.

How to apply for the North Carolina Solar Rebate

While a statewide rebate for solar is absent, you can potentially qualify for federal and Duke Energy rebates. More information on these programs can be found online.

Unlock Lower Energy Bills & Federal Savings

Forget rising energy costs! Discover how switching to solar can slash your electric bill and bring sunshine to your wallet. With the generous 30% federal tax credit still available, now’s the perfect time to invest in clean energy for your North Carolina home. 

Get a free, personalized consultation from ESD Solar today! We’ll help you navigate the NC solar landscape, calculate your potential savings, and design a custom system that fits your budget and energy needs. 

Let’s power your home with sunshine and put money back in your pocket – contact ESD Solar for your free consultation now!

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