Solar power is rapidly expanding across North Carolina, with the state now ranked 4th in the country for solar capacity. As more North Carolinians make the switch to renewable energy, understanding the available incentives can be a game-changer for your budget.
If you're looking into solar for 2024, you'll want to know about the variety of incentives, tax credits, and rebates that can help cut your initial costs and maximize your long-term savings. These programs are designed to make solar energy more accessible and cost-effective for homeowners and businesses alike.
Whether you are a homeowner or a business owner, this guide covers everything you need, from federal tax credits to North Carolina's net metering policies. These incentives can help you save thousands on solar installations while making a positive impact on the environment.
Key Takeaways
- North Carolina is 4th in the nation for solar capacity.
- Solar incentives can significantly reduce your installation costs.
- Learn about 2024 incentives, tax credits, and net metering policies to maximize your savings with solar energy.
North Carolina Solar Incentives Available in 2024
In 2024, North Carolina offers several incentives to encourage the adoption of solar energy. These opportunities help homeowners and businesses save money through tax exemptions, rebates, and special programs.
State Property Tax Exemption
North Carolina offers a 100% property tax exemption for homeowners who install solar panels. This means your property taxes won’t increase, even though the solar panels add value to your home. Residential systems are fully exempt, while commercial systems may receive an 80% exemption.
This exemption significantly reduces your long-term costs, making solar more affordable. You can learn more about applying for this exemption on the North Carolina Department of Revenue website.
Duke Energy Solar Rebate Program
The Duke Energy Solar Rebate Program provides up to $0.40 per watt for residential customers.
For a typical 5 kW solar system, this could mean savings of around $2,000. If you are a commercial or nonprofit customer, the rebates are even higher.
Keep in mind, though, this program is competitive and has limited capacity each year, so you may need to join a waitlist. Be sure to apply early and follow the instructions on Duke Energy’s website to secure your spot.
Piedmont Electric Member Corporation Renewable and Solar Energy Loan Program
If you are a member of the Piedmont Electric cooperative, you have access to their Solar Loan Program. This program offers loans up to $10,000 at a 5% interest rate to help finance your solar installation.
Beyond solar, the program also covers energy-efficient upgrades, like heat pumps and insulation, which can further reduce your energy use and increase your savings over time.
PSNC Energy Green Building Rate Discount
PSNC Energy provides an energy efficiency discount for homes that meet certain standards, such as being as efficient as EnergyStar-certified buildings. By installing solar panels and making other green improvements, you could qualify for this discount, leading to lower ongoing energy bills.
This program makes your solar investment even more worthwhile, especially if you're committed to a more energy-efficient and sustainable home.
Federal Solar Investment Tax Credit (ITC)
If you're considering solar energy, the Federal Solar Investment Tax Credit (ITC) is a smart way to save. With this tax credit, you can deduct up to 30% of the cost of your solar system from your federal taxes. It covers more than just the panels, including batteries, installation labor, and other related expenses.
What's Covered?
- Solar Panels: The cost of the panels is covered.
- Installation: All labor costs for setting up your system are included.
- Battery Storage: If you add batteries when you install your solar system, those costs are included too.
Eligibility Requirements
To qualify for the ITC, you need to own your solar system. Leasing does not make you eligible. If your tax credit is more than what you owe, you can carry the extra amount forward to future tax years.
Timeline for the Credit
The 30% tax credit will be available until 2032. After that, it will drop to 26% in 2033. Planning your installation soon will help you get the most savings possible.
This tax credit helps lower your upfront costs, allowing you to invest in high-quality equipment and professional installation. It makes switching to solar energy a more affordable and rewarding choice for homeowners and businesses.
Net Metering in North Carolina
Net metering is a great way to lower your electricity bills while sharing extra solar power with the grid. When your solar panels produce more energy than you need, that surplus goes back into the grid and earns you valuable credits.
In North Carolina, the net metering policy covers solar systems up to 1 megawatt (MW). This means that many households and small businesses can take advantage of the benefits. Whether your solar setup is big or small, this program is designed to help you get the most out of your investment.
One of the perks is that any unused credits roll over to the next month, allowing you to save even more. Just note that these credits expire at the end of the year, so keep an eye on your usage. Also, if you lease your solar panels, your participation rates might be lower, so it’s something to consider when choosing your solar plan.
Duke Energy and Dominion Energy are two key players in North Carolina’s net metering scene, both offering programs that make it easy to get started.
To enroll, reach out to your utility company, and they’ll guide you through the process. Once your system meets the requirements, you’ll be on your way to enjoying all the benefits that come with generating your own clean energy.
Read More>> Net Metering vs. Net Billing: What’s the Difference?
North Carolina Solar Panels Cost
The average cost of solar panels in North Carolina is around $3.21 per watt, which is lower than the national average. Installing solar panels on your home not only reduces your electric bills but also leads to significant long-term savings.
Here's how the costs break down for common system sizes:
System Size | Cost Before Incentives | Cost After Incentives |
|---|---|---|
5 kW | Around $16,050 | Approximately $11,237 |
8 kW | Around $25,680 | Approximately $17,976 |
10 kW | Around $32,100 | Approximately $22,470 |
With incentives like the federal Investment Tax Credit (ITC), you can save a lot, making your payback period shorter. These financial incentives provide a cushion to offset some of the upfront costs. On top of that, North Carolina offers additional incentives through tax credits and local programs, making solar even more affordable.
If you’re considering solar for your home or business, now is a great time to make the switch. If you are thinking about solar for your home or business, now is a great time to get started. The savings really add up over the years, and you will not only improve energy efficiency but also save money. With lower costs and attractive incentives, going solar in North Carolina is a smart investment today.
Is It Worth Going Solar in North Carolina?
Switching to solar in North Carolina is a smart investment. With 213 sunny days each year, your solar panels will generate plenty of power, helping you save on electricity bills.
Financial Benefits
State incentives like the PowerPair rebate, along with federal tax credits, lower upfront costs and speed up your payback period. You will see reduced energy bills while also increasing your home’s value, all without facing higher property taxes.
Environmental Impact
By choosing solar, you reduce carbon emissions and support North Carolina’s clean energy goals, contributing to a more sustainable future.
Energy Independence
Net metering allows you to send excess energy back to the grid, which helps lower your bills and gives you more control over your energy use.
With local installers offering competitive pricing and strong incentives, solar power is both an affordable and eco-friendly option in North Carolina.
Ready to Go Solar?
Contact Sunsoaked Solar today to learn more about how you can start saving with solar. Their team of experts is ready to help you take the first step toward energy independence and a greener future.
FAQs About North Carolina Solar Incentives
How much does it cost to install solar in North Carolina?
The cost of installing solar panels in North Carolina is often lower than the national average, making it an attractive option. For a typical 5 kW system, you can expect to pay between $10,000 and $15,000 before applying any rebates or credits. After factoring in incentives like the Federal Solar Investment Tax Credit and rebates from Duke Energy, the cost can drop significantly.
Keep in mind that factors like the quality of your panels and the type of roof you have can also affect the final price. To get a clearer picture, consider using a solar savings calculator.
Can you get free solar panels in North Carolina?
The idea of "free" solar panels usually refers to solar leasing or Power Purchase Agreements (PPAs). In these cases, you do not actually own the panels. Instead, you lease them and pay only for the energy you use.
While this lowers upfront costs, it could prevent you from qualifying for incentives such as the federal tax credit. If you want full access to rebates and tax credits, purchasing or financing your solar panels is a better option.
Do solar panels increase home value in North Carolina?
Yes, solar panels can increase the value of your home. Homes with solar installations often sell for more and sell faster, largely because of the long-term savings on energy bills.
North Carolina provides a property tax exemption, which means the added value from solar panels will not raise your property taxes. Owned solar systems usually add more value since buyers can immediately enjoy lower energy bills.