North Carolina Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows North Carolina homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,080 in North Carolina, that's a direct tax credit of $4,824. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

North Carolina does not currently offer a state-level solar tax credit. However, North Carolina homeowners still benefit from the substantial 30% federal ITC, worth $4,824 on a typical 6kW system. Even without a state credit, solar is economically attractive in North Carolina with electricity rates averaging 14.02¢/kWh.

Great news for North Carolina homeowners: Solar energy systems are exempt from property tax assessments. 80% of system value exempt from property tax Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with North Carolina's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

North Carolina does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Full Retail Rate. Full retail rate net metering; Duke Energy offers net metering The current system size cap is 25 kW residential.

North Carolina's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 14.02¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

North Carolina has a mandatory Renewable Portfolio Standard (RPS) target of 12.5% by 2021 (met); 70% CO2 reduction by 2030, carbon neutral by 2050. This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.