Solar Incentives in North Carolina (2026)
North Carolina homeowners pay an average of $0.12/kWh for electricity. With the right incentives, solar can offset a significant portion of that cost. Below are the 3 active programs available in North Carolinaas of February 2026.
Federal ITC Update: The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032. State and utility programs listed below remain in effect.
Active Incentive Programs
| Program | Type | Authority | Amount | Description |
|---|---|---|---|---|
| Net Metering | North Carolina Utilities Commission State | Full retail rate credit. Duke Energy: 11.9-14.2¢/kWh. Dominion Energy: similar retail rates. | North Carolina requires utilities to offer net metering at full retail rate. Credits roll over monthly; annual true-up. Duke charges $200 interconnection fee for systems under 20 kW. Residential customers of Duke Energy, Dominion Energy, and electric cooperatives. Systems up to 1 MW. | |
| Property Tax Exemption | North Carolina Department of Revenue State | 80% of appraised value of solar system is exempt from property tax | North Carolina exempts 80% of the appraised value of solar energy systems from property tax. All residential solar installations in North Carolina. | |
| Sales Tax Exemption | North Carolina Department of Revenue State | Exempt from NC 4.75% state sales tax on solar energy equipment | Solar energy equipment is exempt from North Carolina state sales tax. All solar energy equipment purchases in North Carolina. |
Data sourced from DSIRE, EnergySage, and state energy offices. Last verified February 2026. Verify all programs directly with the administering authority.
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Programs vary by utility and municipality within North Carolina. Enter your ZIP code to see exactly which incentives apply to your address.
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Open ROI CalculatorFrequently Asked Questions
Does North Carolina have a solar tax credit in 2026?
North Carolina does not currently have a state-level solar income tax credit, but there are other incentives available such as net metering, property tax exemptions, and utility rebates. The federal residential ITC (Section 25D) expired December 31, 2025.
What is the average electricity rate in North Carolina?
The average residential electricity rate in North Carolina is approximately $0.12/kWh as of 2026. Higher utility rates generally improve solar ROI.
Does North Carolina have net metering?
Yes. North Carolina has a net metering or net billing policy that credits solar owners for excess electricity exported to the grid. See the incentives table above for current rates and program details.
Is solar equipment exempt from sales tax in North Carolina?
Yes. North Carolina exempts solar energy equipment from state sales tax, reducing upfront system costs.
Does going solar increase property taxes in North Carolina?
No. North Carolina offers a property tax exemption for solar energy systems, meaning the added home value from solar is not included in your property tax assessment.
Did the federal solar tax credit expire?
Yes. The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032.