North Carolina Solar Incentives, Tax Credits and Rebates
Resources to make solar panels more affordable in 2025
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Check your credit before financing solar panels
The average cost of solar panels is between $18,000 and $43,000
Before any incentives, a typical residential solar panel system costs $11,700 to $23,401 in North Carolina. That price drops to $8,190 to $16,381 after the full federal solar tax credit. Residents can take advantage of tax breaks, rebates and loan programs.
Here’s everything you need to know about how state and federal solar incentives can make installing panels more affordable in the Tar Heel State.
NOTE: President Trump’s “One Big Beautiful Bill,” signed in July of 2025, phases out the federal solar tax credit. You now only have until Dec. 31, 2025, to install a system and get the 30% solar tax credit. Compare top solar companies now.
A typical residential solar panel system costs $16,380 before considering any incentives.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most North Carolina homeowners buying solar panels.
Jump to insightNew net metering rules changed how many utility companies compensate residents for sending extra solar power into their local grid.
Jump to insightResidential solar panel incentives in North Carolina
The federal solar investment tax credit (ITC) is the most significant financial incentive for most homeowners buying solar panels in North Carolina. It reduces your federal tax liability by 30% of how much it costs to install solar panels.
The ITC is a credit, meaning it directly decreases the amount of taxes you owe. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If, in the year your system becomes operational, you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
“We were expecting money from the local electric company and from the federal government,” Larry in Goldsboro told us. “But it's only credit. It's not the amount that we will receive. It's not deducted from the amount of purchase.”
Federal solar tax credit expires at the end of 2025
The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the “One Big Beautiful Bill,” signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.
Local solar panel initiatives
- Loan programs: Union Power Cooperative and Randolph Electric Membership Corporation users can get low-interest loans up to $35,000 to pay for home improvements, including solar panels. Piedmont Electric Cooperative has subsidized solar loans up to $15,000.
- Duke Energy incentive: You can get up to $9,000 when you install a qualifying solar panel and battery system through the PowerPair program.
- Property tax abatement: A solar property tax abatement means that your property tax bill won’t go up because the solar panels increased the market value of your home. This abatement exempts 80% of the solar system’s appraised value.
Additional solar incentives North Carolina
As of publishing, Haywood EMC members can borrow 100% of the total cost of their solar heat pump through the ElecTel Cooperative Federal Credit Union. Check DSIRE for the most comprehensive source of information about solar incentives and policies in North Carolina.
| Incentive type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Active Solar Heating and Cooling Systems Exemption | Property tax exemption | Varies | Solar water heat, solar space heat | Residential, commercial, industrial | North Carolina Utilities Commission |
| Lumbee River EMC Program | Loan program | Up to $35,000 | Solar water heat, geothermal heat pumps | Residential, multifamily residential | Lumbee River Electric Membership Corporation |
| South River EMC Solar Water Heating Program | Rebate program | $200 | Solar water heat | Residential | South River EMC |
| Commercial Property Assessed Capital Expenditure | PACE financing | Varies | Solar water heat, solar photovoltaics, fuel cells using non-renewable fuels, wind (small), fuel cells using renewable fuels | Commercial, industrial, nonprofit, agricultural, multifamily residential | Varies |
| Piedmont Electric | Community solar program | Varies | Solar panels, solar water heat | Residential | Piedmont EMC |
What to know about net metering in North Carolina
Net metering lets you earn credits for sending any excess solar energy to the local grid. These credits can offset the cost of electricity consumed at other times. In North Carolina, new net metering rules changed how many residents are paid for their energy production.
Duke Energy, one of the major utility providers in North Carolina, initiated a pilot program that introduced different fees for new customers who installed solar systems after Oct. 1, 2023. Existing Duke Energy customers will continue to get their current rates until Dec. 31, 2026.
The change aims to encourage more solar adoption but has some uncertainty for future solar panel owners. The new policy potentially means less long-term savings for North Carolina homeowners who go solar. For the most accurate local rates and up-to-date information, we recommend talking to your utility provider (likely Dominion Energy or Duke Energy) directly.
How much are solar panels in North Carolina?
After the federal solar tax credit, solar panel costs in North Carolina typically range from $8,190 to $16,381. Leasing is often cheaper upfront, but you won’t be eligible for the federal solar tax credit and other financial incentives.
On the high end, Giovanna in Hubert spent $45,000 going solar, and Sam in Marion paid $73,000.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in North Carolina is 7 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy usage.
Average solar cost by system size in North Carolina
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $11,700 | $14,040 | $16,381 | $18,721 | $21,061 | $23,401 |
| After federal tax credit | $8,190 | $9,828 | $11,466 | $13,104 | $14,742 | $16,381 |
Solar resources in North Carolina
Below are some additional resources.
- NC consumer guide to solar electricity
- NC Clean Energy Technology Center
- Duke Energy information on solar rebate program
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.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Blue Raven Solar | Get Started | 3.9 |  | Cash, loan, lease, PPA | 2014 |
 Freedom Power Solar | Get Started | 4.3 | | Cash, loan | 2007 |
 Palmetto Solar | Learn More | 1.0 | | Cash, loan, lease | 2015 |
 Green Home Systems | Learn More | 1.0 | | Cash, loan | 2017 |
 ShopSolar | Learn More | 4.7 |  | Cash, loan | 2018 |
FAQ
How much can I save with solar panels in North Carolina?
On average, North Carolina homeowners with solar panels avoid $45,388 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money compared with traditional utility bills. In North Carolina, solar panels usually pay for themselves within 10.59 years.
» EXPLORE: Where solar savings go the furthest
Can I get free solar panels in North Carolina?
No, but you can lease with little to no upfront costs. Solar leases generally require a flat monthly fee.
» FREE SOLAR PANELS: Are they really free?
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Is my HOA allowed to restrict solar panels?
Homeowners associations are generally not allowed to restrict solar panel installations, according to North Carolina law.
What has North Carolina’s investment in solar been so far?
Total solar investments in the state amount to $13.3 billion, according to the Solar Energy Industries Association.
Bottom line
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly in North Carolina.
Solar costs vs. savings: North Carolina and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Georgia | $15,214 | $25,357 | 6.3 kW | $2.54 | $45,038 |
| North Carolina | $14,040 | $23,401 | 7 kW | $2.34 | $45,388 |
| South Carolina | $15,119 | $25,199 | 7.6 kW | $2.52 | $51,366 |
| Tennessee | $19,493 | $32,489 | 6.7 kW | $3.25 | $39,124 |
| Virginia | $16,847 | $28,078 | 6.9 kW | $2.81 | $46,993 |
Article sources
- DSIRE, "North Carolina Programs." Accessed March 29, 2024
- EnergySage, "The cost of solar panels in North Carolina." Accessed March 29, 2024
- Solar Energy Industries Association, "North Carolina Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in North Carolina, 2024?" Accessed March 29, 2024.
- Public Staff, North Carolina Utilities Commission, “ Net Metering.” Accessed Sept. 18, 2024.
- North Carolina General Assembly, “Senate Bill 670.” Accessed Sept. 18, 2024.
