Are Solar Panels Worth It in North Carolina?

7 factors to consider before getting solar panels in North Carolina

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including dozens from North Carolina. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Your energy consumption

3. How you pay

4. North Carolina solar incentives

5. Net metering buyback rates

6. The solar company you hire

7. How long you stay in your house

1. Solar panel installation costs

Average solar panel costs in North Carolina are comparable with the national average. A typical residential solar panel installation costs $34,482 in North Carolina.

That doesn't include the cost of a solar battery, which lets you store energy for future use. Adding a battery typically costs $7,000 to $18,000. On the high end, a solar customer in Marion told us they spent $73,000 going solar.

A typical North Carolina household needs a system with a capacity of 14.19 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

Average solar installation cost by system size in North Carolina

2. Your current energy consumption

This may be obvious, but you get the most out of solar if most of your appliances are electric. (If you also have an electric vehicle, solar panels will save you even more.)

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.

Once you know your current electricity consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself.

3. How you pay

Solar panels sound expensive, but homeowners don't have to pay for everything upfront.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

» SOLAR PANELS: Lease vs. buy

4. North Carolina solar incentives

The 30% federal solar tax credit is gone, but North Carolina still has a few incentives that can make solar more affordable. (Loan rates, eligibility and other requirements vary.)

• Property tax break: Adding solar to your home generally won’t raise your property taxes.

• Piedmont Electric Cooperative: Eligible customers can borrow up to $30,000 for solar and pay it back over as long as 10 years.

• South River EMC: Eligible customers can get energy-efficiency loans of up to $35,000 with terms up to 10 years.

» MORE: Solar incentives in North Carolina

5. Net metering in North Carolina: changing rate policies

Net metering rules in North Carolina depend on your utility. If you’re a Duke Energy customer, the old net metering program closed to new customers in 2023.

Newer customers may have different options:

• Net Metering Bridge: Lets you stay on a standard residential electric rate, but enrollment is limited.

• Residential Solar Choice: Uses time-of-use pricing, so electricity rates can change depending on when you use power.

Both programs give you credit for extra solar power sent to the grid, but the credits are based on lower avoided-cost rates. That means newer Duke Energy customers may get less value for excess solar than customers under the old net metering plan.

6. The solar company you hire

We’ve heard from dozens of solar customers in North Carolina. A couple of things we know for sure: People like powering their homes with a reliable source of cheap, clean energy. They don’t like getting into solar contracts that don’t meet their expectations.

For instance, Derrek in Spring Lake, who spent $58,000 installing a solar system, said only half his panels are working, and he’s been trying to get them fixed for a year. Meanwhile, he still has to pay $75 to $100 each month for electricity. He sounded frustrated: “You do the math.” Derrek still says that “solar panels are a great idea,” but only if you work with a reputable installer.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.

We suggest using the NRL's PVWatts Calculator to estimate how much electricity a solar system could produce at your home.

7. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 11.9 years on average in North Carolina. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

It's true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation.

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. North Carolina averages 4 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.

• What is the size and angle of my roof? North Carolina (and the rest of the U.S.) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.

• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in North Carolina

It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in North Carolina

• Cheaper energy bills: The average homeowner in North Carolina uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and often significantly lower). Solar panels also protect you from future energy cost increases.
• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• Higher home resale value: Installing solar panels can significantly increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in North Carolina

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in North Carolina.
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in North Carolina

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for North Carolina’s top solar companies to learn more.

North Carolina solar FAQ

Bottom line: Is going solar in North Carolina worth it for you?

Going solar in North Carolina might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: North Carolina and nearby states