North Carolina Solar Incentives, Rebates, and Tax Credits 2026

Looking for all solar incentives currently available in North Carolina? We’ve compiled a list of everything you need to know – from how to apply to every benefit that you can apply for.

Last updated: March 7, 2026

North Carolina currently ranks 5th nationally for total installed solar capacity (SEIA, February 2026), and despite the expiration of the federal solar tax credit on December 31, 2025, the state still offers compelling incentives that make solar financially attractive. Duke Energy’s PowerPair program, ongoing battery control credits, 100% property tax exemptions, and net metering options can save homeowners thousands of dollars on solar installations.

This guide covers every active North Carolina solar incentive, rebate, and program available in 2026, with verified details on eligibility, application processes, and real savings potential.

Quick Summary: What’s Available in 2026?

  • Duke Energy PowerPair: Up to $9,000 one-time rebate for solar + battery systems — Duke Energy Progress has reached capacity; limited slots may remain in Duke Energy Carolinas. Verify availability directly at duke-energy.com/powerpair before proceeding.
  • Battery Control Credits: $276-1,104/year in ongoing bill credits for Duke customers
  • Property Tax Exemption: 100% exemption on added home value from solar (residential)
  • Net Metering: 1:1 retail rate credits for Dominion Energy customers; time-of-use rates for Duke customers
  • Solar for All: $156 million program launching late 2025 for low-income households
  • Federal Tax Credit: EXPIRED for new installations in 2026 or later. Homeowners who installed solar in 2025 can still claim the 30% credit on their 2025 federal tax return using IRS Form 5695. Consult a tax professional to confirm eligibility.

Average system cost in 2026: $23,400-32,400 for a typical 7-10 kW system before incentivdes.

Federal Incentive

Federal Solar Investment Tax Credit (ITC) — EXPIRED for New Installations

The federal solar tax credit that provided 30% back on installation costs expired for new installations on December 31, 2025. Homeowners who installed solar in 2025 can still claim the 30% credit on their 2025 federal tax return using IRS Form 5695 — but systems installed in 2026 or later do not qualify. Consult a qualified tax professional to confirm your eligibility before filing.

Type: Federal income tax credit
Incentive Amount: Was 30% of total system cost
Status: EXPIRED for 2026+ installations. 2025 filers may still claim on their 2025 tax return.
Source: IRS Form 5695; H.R. 1 “One Big Beautiful Bill” (signed July 2025)
Last verified: IRS.gov, March 2026
Duke Energy

Duke Energy PowerPair Solar + Battery Rebate

⚠ Duke Energy Progress: Capacity reached — waitlist closed. Duke Energy Carolinas: Limited slots may remain. Verify availability at duke-energy.com/powerpair before signing any contracts.

Duke Energy offers up to $9,000 in one-time installation incentives for qualifying solar + battery systems installed together. Solar receives $0.36 per watt-AC (up to 10 kW = $3,600 max), and battery storage receives $400 per kWh (up to 13.5 kWh = $5,400 max). Must be installed by a Duke Energy Trade Ally. Solar and battery must be installed at the same time — existing solar systems are not eligible.

Type: One-time installation rebate
Incentive Amount: Up to $9,000 total ($3,600 solar + $5,400 battery)
Status: Duke Energy Progress — capacity reached, waitlist closed. Duke Energy Carolinas — limited capacity remaining. Status changes frequently.
Source: Duke Energy PowerPair Program
Last verified: duke-energy.com/powerpair, March 2026
Duke Energy

Duke Energy Battery Control Programs (EnergyWise Home / Power Manager)

Battery owners who allow Duke Energy to dispatch their batteries during peak demand events (30–36 times annually) receive ongoing monthly bill credits based on battery capacity. Estimated $23–92 per month ($276–1,104 annually) depending on battery size and configuration. Duke Energy Progress customers enroll in EnergyWise Home; Duke Energy Carolinas customers enroll in Power Manager. Credit amounts are estimates based on the net customer rate of approximately $4.61/kW/month — actual credits depend on your battery model and Duke Energy’s current approved equipment list.

Type: Monthly bill credits for battery control participation
Incentive Amount: Estimated $23–92/month (~$276–1,104/year). Amounts vary by battery and are not guaranteed.
Status: Active
Source: Duke Energy EnergyWise Home / Power Manager
Last verified: duke-energy.com, March 2026
North Carolina State Benefit

Solar Property Tax Exemption (100% for Residential)

Solar energy systems installed on residential properties are 100% exempt from property tax increases. You pay zero additional property taxes on the added home value solar panels create. Commercial systems receive an 80% exemption. No application required for residential homeowners — the exemption applies automatically.

Type: Property tax exemption
Incentive Amount: 100% residential, 80% commercial
Status: Active, permanent (in effect since 2008)
Source: NC General Statute 105-275(45)
Last verified: ncleg.gov, March 2026
Duke Energy

Duke Energy Net Metering Bridge Rate (Rider NMB)

The Net Metering Bridge (Rider NMB) is available to new Duke solar customers through October 1, 2027, subject to annual capacity caps. Unlike the Solar Choice (TOU) plan, NMB does not require a time-of-use rate schedule. Customers who enrolled in legacy net metering (Rider NM) before October 1, 2023 will be automatically transitioned to Rider NMB on December 31, 2026. Once enrolled in NMB, customers may remain on it for up to 15 years from their interconnection application date.

Type: Net billing rate structure
Incentive Amount: Export credits at avoided cost (~$0.034/kWh); no TOU requirement
Status: Available to new customers through October 1, 2027 (capacity-limited). Legacy NM customers transition to NMB on December 31, 2026.
Source: NC Public Staff; NCSEA
Last verified: publicstaff.nc.gov, March 2026
Duke Energy

Duke Energy Solar Choice Rider (Time-of-Use)

Standard net billing program for new Duke solar customers. Export credits are paid at Duke’s Net Excess Energy Credit (NEEC) rate — approximately $0.034/kWh (3.4 cents) as of 2026, based on avoided cost. Duke’s residential retail rate is approximately $0.12–$0.14/kWh, meaning export credits are worth roughly 75–80% less than the electricity you buy from the grid. Requires enrollment in a time-of-use rate schedule. Duke Energy Progress customers pay a $28 monthly minimum; Duke Energy Carolinas customers pay a $22 monthly minimum.

Type: Time-of-use net billing
Incentive Amount: ~$0.034/kWh (avoided cost rate) for excess exports — significantly below retail
Status: Active, default for new installations after October 1, 2023
Source: NC Public Staff; Duke Energy NC tariff
Last verified: publicstaff.nc.gov, March 2026
Dominion Energy North Carolina

Dominion Energy Net Metering

Dominion Energy customers in northeastern North Carolina receive traditional 1:1 net metering, meaning excess solar generation earns retail-rate credits that offset future electricity consumption. Credits accumulate and carry forward monthly. Unused credits expire June 1 annually. Residential system cap: 25 kW. Application fee: $200 for systems under 20 kW.

Type: Traditional 1:1 net metering
Incentive Amount: Retail rate credits (1:1 compensation)
Status: Active
Source: Dominion Energy North Carolina Net Metering
Last verified: dominionenergy.com, March 2026
North Carolina State Program

EnergizeNC Solar for All (Low-Income Program)

⚠ Program paused: On August 7, 2025, the EPA issued a notice of termination for the Solar for All program. The NC Department of Environmental Quality is reviewing the letter. No applications are open and no funds are being distributed as of March 2026.

North Carolina was awarded $156 million in April 2024 through the EPA’s Solar for All program to expand rooftop solar, community solar, and battery storage access for low-income and disadvantaged households. Program design was paused in August 2025 following a federal termination notice. Low-income households seeking energy assistance should contact NC 211 for currently available programs.

Type: Federal grant-funded solar deployment program
Incentive Amount: Varies — program not yet launched
Status: PAUSED — federal termination under review as of August 2025. No applications open.
Source: energizenc.com; NC DEQ
Last verified: energizenc.com, March 2026
Blue Ridge EMC

Blue Ridge EMC Solar Programs

Blue Ridge Electric Membership Cooperative customers can choose between net metering or net billing programs. Net metering provides 1:1 retail rate credits for excess generation. Net billing compensates at wholesale rates but includes different rate structures. Available to members in western North Carolina counties including Ashe, Alleghany, Watauga, Avery, and portions of surrounding areas. Contact Blue Ridge EMC directly to confirm current program terms and eligibility.

Type: Net metering or net billing options
Incentive Amount: Retail rate (net metering) or wholesale (net billing)
Status: Active — verify current terms directly with Blue Ridge EMC
Source: Blue Ridge EMC
Last verified: blueridgeemc.com, March 2026
Local Government Programs

City and County Solar Financing Programs

North Carolina cities and counties are legally authorized to offer low-interest loans for residential and commercial solar installations. Programs vary by locality. Example: Piedmont Electric Membership Corporation has offered loans up to $10,000 at 5% interest for 7 years. Contact your local electric cooperative, county government, or credit union directly — availability and terms vary and change frequently.

Type: Low-interest financing
Incentive Amount: Varies by program and locality
Status: Varies by jurisdiction — contact your local provider to confirm availability
Source: Local governments, electric cooperatives, credit unions
Last verified: Verify directly with your local provider
North Carolina State Law

Solar Access Rights (HOA Protection)

North Carolina law protects homeowners’ rights to install solar energy systems. HOAs cannot prohibit solar panel installations, though they may impose reasonable restrictions on placement — provided those restrictions do not significantly increase system costs or reduce production by more than 10%. HOAs cannot require homeowners to install more expensive or less efficient systems. Note: HOA disputes involving solar installations are legal matters that depend on your specific HOA documents. Consult a licensed North Carolina attorney if your HOA objects to your installation.

Type: Legal protection
Incentive Amount: Right to install solar systems
Status: Active, permanent
Source: NC General Statute 22B-20
Last verified: ncleg.gov, March 2026

Duke Energy PowerPair Program: The Biggest Incentive in 2026

Duke Energy Progress customers: the program has reached capacity and the waitlist has closed. Duke Energy Carolinas customers: limited slots may remain, but availability changes weekly. Check duke-energy.com/powerpair for current status before signing any contracts.

With the federal tax credit gone, Duke Energy’s PowerPair program has become the most valuable solar incentive for North Carolina homeowners. The program offers up to $9,000 for installing solar panels and battery storage together.

How PowerPair Works

Solar Incentive: $0.36 per watt-AC for systems up to 10 kW

  • 7 kW system = $2,520
  • 10 kW system = $3,600 (maximum)

Battery Incentive: $400 per kWh for batteries up to 13.5 kWh

  • 10 kWh battery = $4,000
  • 13.5 kWh battery (Tesla Powerwall size) = $5,400 (maximum)

Total Maximum Rebate: $9,000 ($3,600 solar + $5,400 battery)

Real Example: 7 kW Solar + 13.5 kWh Battery

  • Solar rebate: 7,000 watts × $0.36 = $2,520
  • Battery rebate: 13.5 kWh × $400 = $5,400
  • Total PowerPair rebate: $7,920

Eligibility Requirements

  1. Must be a Duke Energy Carolinas or Duke Energy Progress customer in North Carolina
  2. Solar and battery must be installed at the same time (cannot add battery later)
  3. Installation must be performed by a Duke Energy Trade Ally
  4. Must enroll in either Residential Solar Choice Rider or Net Metering Bridge Rider
  5. Maximum system export to grid: 20 kW-AC
  6. Reliable internet connection required for battery monitoring
  7. Must apply within 90 days of system installation

How to Apply for PowerPair

  1. Find a Duke Energy Trade Ally installer from Duke’s approved list
  2. Design your system to meet PowerPair requirements (must include both solar and battery)
  3. Submit Interconnection Request through your installer
  4. Choose your rider: Solar Choice or Net Metering Bridge (if eligible)
  5. Complete PowerPair application (within 90 days of installation)
  6. System inspection and approval by Duke Energy
  7. Receive rebate (typically within 10 business days of approval)

Duke Energy Battery Control Programs: Ongoing Monthly Income

Beyond the one-time PowerPair rebate, Duke Energy offers two battery control programs that provide ongoing monthly bill credits in exchange for allowing Duke to dispatch your battery during peak demand events.

Program Names by Service Territory

  • Duke Energy Progress: EnergyWise Home
  • Duke Energy Carolinas: Power Manager

Both programs work the same way but have different names based on your utility service territory.

How Battery Control Works

When you enroll, Duke Energy can remotely discharge your battery to help balance the grid during peak demand events:

  • Frequency: 30-36 events per year (minimum 30, maximum 36)
  • Duration: Up to 4 hours per event
  • Notice: You’ll receive advance notification through your battery’s app
  • Opt-out: You can decline up to 4 events per year and remain eligible

During these events, Duke Energy can discharge your battery down to 20% state of charge to provide electricity back to the grid.

Monthly Bill Credits

Bill credits are based on your battery’s continuous discharge capacity (measured in kW). The figures below are estimates based on Duke Energy’s net customer credit rate of approximately $4.61/kW/month (per NCUC program documentation). Actual credits depend on your specific battery model, firmware, and Duke Energy’s current approved equipment list. Verify current amounts at duke-energy.com before making purchasing decisions. Here are estimated monthly credits for common battery configurations:

Enphase IQ Battery 5P:

  • Single battery (3.84 kW): ~$23/month = $276/year
  • Two batteries (7.68 kW): ~$46/month = $552/year
  • Three batteries (11.52 kW): ~$69/month = $828/year

Tesla Powerwall 3 (11.5 kW continuous):

  • ~$69/month = $828/year

Generac PWRcell (9 kW typical):

  • ~$54/month = $648/year

SolarEdge Home Battery (10 kW typical):

  • ~$60/month = $720/year

FranklinWH aPower (10 kW typical):

  • ~$60/month = $720/year

Credit amounts are estimated based on battery continuous discharge capacity at the net customer rate of approximately $4.61/kW/month (Duke Energy, NCUC Order 2024). Actual credits depend on your specific battery model, configuration, and Duke Energy’s current approved equipment list. Verify current credit amounts at duke-energy.com before making purchasing decisions based on these projections.

10-Year Value Example

A Tesla Powerwall 3 enrolled in battery control:

  • Monthly credit: $69
  • Annual credit: $828
  • 10-year total: $8,280

This is in addition to the PowerPair rebate, meaning a typical solar + Powerwall system could receive:

  • PowerPair rebate: $7,920 (one-time)
  • Battery control credits: $8,280 (over 10 years)
  • Total battery incentives: $16,200

Requirements for Battery Control

  1. Must own an eligible battery system (Enphase, Tesla, SolarEdge, FranklinWH, Generac, etc.)
  2. Reliable internet connection required
  3. Battery must be interconnected and comply with Duke Energy standards
  4. Must grant Duke Energy permission to remotely control battery
  5. Can enroll existing batteries (don’t need to be part of PowerPair)

North Carolina Solar Property Tax Exemption

North Carolina offers a 100% property tax exemption for residential solar systems, meaning homeowners pay zero additional property taxes on the increased home value solar panels create.

How the Exemption Works

Research from Lawrence Berkeley National Laboratory (LBNL, most recent available study) finds solar panels typically increase home values by approximately 3–4%. Actual home value increases depend on system size, local market conditions, and buyer demand for solar homes.

Without the exemption, you’d pay property taxes on that increase:

  • Added value: $15,000 (estimated — varies by system size and local market)
  • NC average property tax rate: 0.7%
  • Annual additional tax without exemption: ~$105

With the exemption, you pay $0 additional property taxes despite the increased home value.

20-Year Savings

Over 20 years (typical lifespan solar panels hold significant value):

  • Annual savings: $210
  • 20-year savings: $4,200

Actual savings depend on your county’s property tax rate and your system’s impact on home value.

Residential vs. Commercial

  • Residential systems (not used for business income): 100% exemption, no application required
  • Commercial systems (business-owned or income-generating): 80% exemption

No Application Needed

For residential homeowners, the exemption is automatic. According to a 2011 NC Department of Revenue memo to county assessors, solar energy “systems owned by individuals and not used to produce income or in connection with a business are not taxable.”

You don’t need to file any forms or applications — the exemption applies automatically when your county assessor evaluates your property.

Net Metering in North Carolina: What You Get Paid for Extra Solar

Net metering policies vary significantly depending on your utility company. North Carolina has three main scenarios:

1. Dominion Energy: Traditional 1:1 Net Metering (Best Option)

If you’re in northeastern North Carolina served by Dominion Energy, you get the state’s best net metering deal:

How it works:

  • Every kWh of excess solar you export = 1 kWh credit at retail rates
  • Credits accumulate monthly and carry forward
  • Unused credits expire June 1 annually
  • System size cap: 25 kW (residential)
  • Application fee: $200 for systems under 20 kW

Example:

  • Retail rate: $0.13/kWh
  • Export 500 kWh in sunny months = 500 kWh credit = $65 value
  • Use that credit in winter when solar production is lower

This is true net metering — you’re credited at the same rate you pay for electricity.

2. Duke Energy: Time-of-Use Net Billing (Standard for New Customers)

Most North Carolina residents are Duke Energy customers and face more complex net billing under the Solar Choice Rider:

How it works:

  • Export credits vary by time of day and season
  • Summer peak hours (2-7 PM) have higher rates
  • Winter peak hours (mornings) have different rates
  • Export credits are paid at Duke’s avoided cost rate — approximately $0.034/kWh as of 2026, roughly 75–80% below the retail rate (Source: NC Public Staff, March 2026)
  • Grid access fees apply to systems over 15 kW

Example (simplified):

  • Daytime export during off-peak: ~$0.08/kWh credit
  • Nighttime consumption: ~$0.13/kWh cost
  • You export more than you import, but credits are worth less

Systems over 15 kW pay additional fees:

  • Duke Energy Progress: $1.50/kW/month grid access fee + $28 minimum bill
  • Duke Energy Carolinas: $2.05/kW/month grid access fee + $22 minimum bill

3. Duke Energy: Net Metering Bridge Rate (Expires 12/31/2026)

Available to qualifying customers through December 31, 2026, the Bridge Rate offers better compensation than Solar Choice:

How it works:

  • Better export credit rates than Solar Choice (not time-of-use)
  • No grid access fees
  • Minimum bill requirements and non-bypassable charges apply
  • Subject to annual capacity caps
  • Must maintain enrollment for 24 months if enrolled in PowerPair

Who’s grandfathered: Customers who applied for Duke Energy interconnection before October 1, 2023, remain on legacy net metering (1:1 credits) until December 31, 2026, when they’ll transition to Bridge Rate or Solar Choice.

Which Net Metering Option is Best?

Best: Dominion Energy 1:1 net metering (if available in your area)

Good: Duke Energy Bridge Rate (if eligible and available before 12/31/2026)

Standard: Duke Energy Solar Choice (time-of-use, lower export rates)

Is Solar Still Worth It in North Carolina Without the Federal Tax Credit?

The loss of the 30% federal tax credit is significant, but North Carolina’s combination of state and utility incentives can still make solar financially viable — especially for Duke Energy customers who can stack multiple benefits.

Total Available Incentives for Duke Energy Customers

Here’s what a typical homeowner installing a 7 kW solar system + 13.5 kWh battery could receive:

One-time incentives:

  • PowerPair rebate: $7,920
  • Property tax exemption value (20 years): $4,200

Ongoing incentives:

  • Battery control credits (10 years): $8,280
  • Electricity bill savings (25 years, estimated): $25,000-35,000

Total 25-year value: $45,400-55,400

Estimated 25-year value: $45,400–55,400

Important: These figures are estimates based on published program rates and general assumptions about system performance and electricity rate escalation. Actual savings will vary based on your system size, roof characteristics, local electricity rates, utility rate changes, and program availability. These are not a guarantee of financial performance. Consult a licensed solar installer for a site-specific analysis. Exspenditure.com is not a financial advisor.

Payback Period Comparison

With federal tax credit (2025 installation):

  • System cost: $28,000
  • Federal tax credit (30%): -$8,400
  • PowerPair rebate: -$7,920
  • Net cost after incentives: $11,680
  • Payback period: ~7-9 years

Without federal tax credit (2026 installation):

  • System cost: $28,000
  • PowerPair rebate: -$7,920
  • Net cost after incentives: $20,080
  • Estimated payback period: ~12–15 years (based on a 7 kW system at approximately $28,000 installed cost with PowerPair rebate applied; assumes current Duke Energy rates with modest annual escalation). Actual payback periods vary by system size, installer pricing, and utility rates.

Who Benefits Most from Solar in 2026?

Solar makes the most financial sense for:

  1. Duke Energy customers who can access PowerPair + battery control programs
  2. High electricity users (1,000+ kWh/month bills)
  3. Homeowners planning to stay 15+ years (allows full payback)
  4. Those wanting backup power (battery provides resilience value beyond economics)
  5. Dominion Energy customers with 1:1 net metering access

Who Should Wait or Reconsider?

Solar may not make sense for:

  1. Homeowners planning to move within 5-10 years
  2. Properties with heavy shading or poor roof orientation
  3. Those without access to PowerPair (non-Duke customers without good net metering)
  4. Renters or those who don’t own their property

EnergizeNC Solar for All: Help for Low-Income Household

North Carolina received $156 million from the EPA’s Solar for All program to provide solar access to low-income and disadvantaged communities.

Program Overview

The EnergizeNC coalition (led by NC Department of Environmental Quality) will deploy solar and battery storage to over 12,500 households across the state, installing at least 43 megawatts of residential solar capacity.

Three Program Components

  1. Rooftop Solar (single-family homes)
    • Solar panel installation with optional battery storage
    • No upfront cost for eligible households
    • Meaningful energy bill savings
  2. Multifamily Solar (apartment/condo buildings)
    • Behind-the-meter solar at nonprofit and public housing
    • Reduces electricity costs for residents
  3. Community Solar Pilot (subscribers)
    • Partnerships with municipal utilities and electric co-ops
    • Virtual net metering credits for participants

Eligibility Requirements

While final eligibility criteria are still being finalized, the program will prioritize:

  • Low-income households (specific income thresholds TBD)
  • Disadvantaged communities as defined by federal criteria
  • State- and federally-recognized tribal lands
  • Households in areas with high energy burden

Timeline

  • Funding awarded: April 2024
  • Program launch: Late 2025 / early 2026
  • Applications open: Expected late 2025
  • Program duration: 5 years

How to Stay Updated

The EnergizeNC program has been paused following a federal termination notice issued August 7, 2025. Visit energizenc.com for official program updates. As of March 2026, no applications are open and no timeline for resumption has been announced. For currently available low-income energy assistance, contact NC 211 at nc211.org.

Frequently Asked Questions

What happened to the federal solar tax credit?

The federal solar Investment Tax Credit (ITC), which provided a 30% tax credit on solar installations, was eliminated effective January 1, 2026, by H.R. 1 (“One Big Beautiful Bill”) signed in July 2025. The credit was originally scheduled to last until 2032 before stepping down, but was ended nearly a decade early.

Homeowners who installed solar in 2025 can still claim the 30% credit on their 2025 tax return. Systems installed in 2026 or later do not qualify.

Can I still get the PowerPair rebate if I already have solar panels?

No. PowerPair requires solar panels and battery storage to be installed at the same time. You cannot add a battery to an existing solar system and receive the PowerPair rebate.

However, if you already have a battery (even without PowerPair), you can still enroll in the EnergyWise Home or Power Manager battery control programs to receive ongoing monthly bill credits.

How long does it take to receive the PowerPair rebate?

Once your application is approved and your system passes Duke Energy’s inspection, rebates are typically processed within 10 business days. The rebate is applied as a credit to your Duke Energy bill.

Does the property tax exemption expire?

No. North Carolina’s solar property tax exemption is permanent and has been in effect since 2008. There is no expiration date. As long as you own your solar system (not leased), you’ll continue to receive the exemption for the life of the system.

What’s the difference between Solar Choice and the Bridge Rate?

Solar Choice Rider (standard for new customers):

  • Time-of-use export rates (vary by hour and season)
  • Export credits typically 30-40% lower than retail rates
  • Grid access fees for systems over 15 kW
  • No time limit

Net Metering Bridge Rate (limited availability):

  • Better export compensation than Solar Choice
  • No grid access fees
  • Available only through December 31, 2026
  • Subject to annual capacity caps

If you’re eligible for both, the Bridge Rate generally provides better economics, but it’s only available until the end of 2026.

I’m a Dominion Energy customer. Do I get PowerPair?

No. PowerPair is only available to Duke Energy customers (Duke Energy Carolinas and Duke Energy Progress). However, Dominion Energy customers get the state’s best net metering program — traditional 1:1 net metering where you’re credited at full retail rates for excess generation.

Can my HOA prevent me from installing solar panels?

No. North Carolina’s Solar Access Law protects your right to install solar panels. HOAs cannot prohibit solar installations, though they can impose “reasonable restrictions” on placement that don’t significantly increase costs (more than 10%) or reduce efficiency.

If your HOA is preventing your solar installation, you may have legal recourse under state law.

Do I need to file for the property tax exemption?

Not for residential systems. The exemption is automatic for solar systems owned by individuals and not used for business income. Commercial systems may require an application.

What size solar system do I need?

System size depends on your electricity usage. Review 12 months of electric bills to determine your average monthly consumption in kWh. A typical North Carolina home uses 900-1,100 kWh per month.

General sizing:

  • 5 kW system: ~600 kWh/month production
  • 7 kW system: ~850 kWh/month production
  • 10 kW system: ~1,200 kWh/month production

Your installer will design a system sized to your specific usage and roof characteristics.

Which batteries are eligible for PowerPair and battery control programs?

Duke Energy maintains an approved battery list that includes:

  • Tesla Powerwall (all versions)
  • Enphase IQ Battery
  • SolarEdge Home Battery
  • FranklinWH aPower
  • Generac PWRcell
  • Other batteries meeting Duke Energy’s technical requirements

Check Duke Energy’s current approved equipment list, as it’s updated periodically.

Is solar worth it if I plan to move in 5 years?

Without the federal tax credit, 5 years likely isn’t long enough to break even on a solar investment in North Carolina. Payback periods are now typically 12-15 years for Duke customers (longer for others).

However, solar panels increase home resale value, so you may recoup some or all of your investment when you sell, depending on local market conditions.

How to Get Started with Solar in North Carolina

Step 1: Determine Your Utility Provider

Your available incentives depend on who provides your electricity:

  • Duke Energy Carolinas: Central and western NC (Charlotte, Durham, Triad)
  • Duke Energy Progress: Central and eastern NC, Asheville area
  • Dominion Energy: Northeastern NC
  • Electric Cooperatives: Various rural areas (Blue Ridge EMC, Piedmont EMC, etc.)

Check your electric bill to identify your provider.

Step 2: Evaluate Your Solar Potential

Before contacting installers:

  1. Review your electricity usage: Gather 12 months of electric bills
  2. Assess your roof: South, southwest, or southeast facing with minimal shade is ideal
  3. Check roof condition: Solar panels last 25-30 years — replace aging roofs first
  4. Calculate available incentives: Use this guide to estimate your rebates and credits

Step 3: Get Multiple Quotes

For Duke Energy customers pursuing PowerPair:

  • Must use a Duke Energy Trade Ally installer
  • Get at least 3 quotes to compare pricing and equipment
  • Ensure quotes include both solar and battery (required for PowerPair)

For other utility customers:

  • Get quotes from licensed, experienced NC solar installers
  • Compare system size, equipment quality, warranties, and total cost

Step 4: Understand Financing Options

  • Cash purchase: Lowest total cost, fastest payback
  • Solar loan: Spread payments over 10-25 years, still eligible for incentives
  • Lease or PPA: No upfront cost, but you don’t own the system (may not qualify for some incentives)

Step 5: Apply for Incentives and Interconnection

Your installer typically handles:

  • PowerPair application (if applicable)
  • Duke Energy interconnection request
  • Permitting and inspections
  • Final system commissioning

You’ll handle:

  • Battery control program enrollment (after installation)
  • Property tax exemption (automatic for residential, no action needed)

Step 6: Monitor and Maximize Your Investment

After installation:

  • Enroll in battery control programs for ongoing credits (Duke customers)
  • Monitor your system’s production through the equipment’s app
  • Review net metering credits on your utility bill
  • Keep records for warranty purposes

Final Thoughts: Is 2026 the Right Time for Solar in North Carolina?

The elimination of the 30% federal tax credit significantly changes the solar economics in North Carolina, but the state’s incentives — particularly Duke Energy’s PowerPair program and ongoing battery control credits — can still deliver meaningful savings for the right homeowners.

Solar still makes sense if:

  • You’re a Duke Energy customer who can access PowerPair (act quickly before capacity fills)
  • You have high electricity usage and want to lock in rates for 25+ years
  • You value energy independence and backup power during outages
  • You plan to stay in your home for at least 15 years

Consider waiting or exploring alternatives if:

  • PowerPair has reached capacity and you’re not a Dominion Energy customer
  • You plan to move within 5-10 years
  • Your roof needs replacement soon or has heavy shading
  • You’re waiting to see if federal incentives are restored (unlikely in current political climate)

The PowerPair program is nearing capacity and the Bridge Rate expires at the end of 2026. If you’re considering solar, the window for maximizing North Carolina incentives is closing.

For the latest program availability and to start evaluating solar for your home, contact Duke Energy Trade Ally installers or your local utility provider directly.

Last Updated: February 2026
Sources: Duke Energy, Dominion Energy, NC Department of Environmental Quality, NC Utilities Commission, NC General Statutes

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