How to Save Money on Solar Panels in North Carolina

Key Points

• North Carolina produced over 8.4GW of solar energy in 2022, enough to power over one million homes.
• Homeowners can benefit from financial incentives and government regulations to reduce the cost of solar panel installations.
• The federal solar tax credit offers 30% back on all solar purchases made toward an installation, cutting the price down by over $4,500 for a 6kW system.
• Duke Energy, North Carolina’s largest utility provider, offers a rebate worth $600 per kW, potentially saving homeowners $3,600 on a 6kW system.
• North Carolina residents can save money through the state’s net metering program, which requires utility companies to pay residents for their excess solar energy.

In 2022, North Carolina produced over 8.4GW of solar energy, enough to power over one million homes. This came on the back of a strong push for renewable infrastructure just a few years earlier. While the incentives are coming to an end, it’s still a great time for homeowners to consider solar panels in North Carolina.

However, one of the biggest issues with committing to an array is cost. While an installation can run you $10,000 or more, there are ways to drop that number significantly. From financial incentives to government regulations, North Carolina has plenty of opportunities available. Let’s learn more about them in this article.

How to Save Money on Solar Panels in North Carolina: Overview

North Carolina has low prices on equipment and excellent sunlight, making it a great state for solar. However, the high average power usage can make it difficult for homeowners to get behind. With this in mind, you may wonder if there’s any way to save money on solar panels in North Carolina.

The Tar Heel State is one of the leading Southern States for renewable energy. While their energy standards are modest compared to the rest of the country, they’ve pushed for solid investment into solar energy. This means that homeowners can benefit from financial incentives and government regulations to drop the cost of an installation. Let’s break down the opportunities below.

Solar Panels in North Carolina: Federal Incentive

Before getting into state-backed incentives, homeowners in North Carolina should utilize the federal solar tax credit. This program offers 30% back on all solar purchases made toward an installation. This would include any labor, equipment (including batteries), and sales tax. Those installing a 6kW system in North Carolina can cut the price down by over $4,500.

To receive the federal credit, you’ll have to purchase your array outright or with a loan. You’ll have to live at the location where the system is installed, and all equipment must be unmodified. 

It’s also important to know that the program has a termination date. You’ll receive 30% off until 2032, 26% the following year, and 22% the year after that. And unless it’s extended, the federal credit ends in 2035.

North Carolina’s State Credits and Rebates

You can directly cut the cost of an installation by taking advantage of your state’s financial incentives. These typically come in the form of tax credits and rebates. While North Carolina doesn’t have a credit, you can still earn money back through Duke Energy.

The state’s largest utility provider offers a rebate worth $600 per kW. Those with a 6kW system could receive $3,600. However, the process of receiving these returns could prove challenging. Therefore, it’s important to follow the procedure carefully.

Additionally, North Carolinians can save money through the state’s net metering program. This is a regulation that requires utility companies to pay residents for their excess solar energy. In North Carolina, extra credits roll over to cover next month’s bill. However, any leftover credits don’t get paid out at the end of the year. Therefore, it’s important to install the proper amount of wattage.

In some cases, homeowners can apply for a power purchase agreement, allowing them to sell their solar renewable energy credits (SRECs) back to their utility companies. The program was recently updated, meaning only customers with arrays between 5kW and 10kW can apply. 

Solar Panels in North Carolina: Government Regulations

The Tar Heel State had aggressive renewable portfolio standards (RPS), but they’re becoming increasingly outdated in recent years. We use a state’s RPS to determine the intention to invest in future renewable structures. 

North Carolina’s RPS pushes for 12.5% clean energy production by 2021, which has been met. There’s no incentive for utilities to continue their support for further infrastructure. Because of this, we may see financial benefits disappear in the near future.

Still, there’s a silver lining for North Carolina’s government regulations. Those that install a solar panel system receive a property tax exemption that lasts for 15 years. This can save thousands on the increased value of your home.

Should North Carolinians Lease Solar?

In 2017, North Carolina allowed solar leasing, which acts as an affordable option for those wanting to make the switch. While leasing a solar array disqualifies you from any of the incentives, it still results in a lower monthly payment overall. 

However, if you don’t want the monthly lease payments or you don’t have a roof suitable enough for an array, North Carolina just approved its first community solar program in 2022. This means that you can subscribe to a public array, which guarantees a discounted rate on electricity. 

The program is still new, however, so you’ll have to make an active effort to get a community solar system approved in your area.

Solar Panels in North Carolina: Incentive Summary

Summary Table

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