North Carolina Solar Incentives, Tax Exemptions, How to Claim?

The North Carolina government and electric companies offer tax rebates, incentives, and many other offers to make it easy for citizens to move to renewable energy sources. North Carolina citizens have many programs that can benefit them, let’s explore each solar incentive available in 2024.

North Carolina Solar Incentives

North Carolina residents can take advantage of the government and many electrical companies’ solar incentives and credits to save their cost of solar panel installation and earn extra money. The North Carolina State is known for its generous solar tax relief and incentives to encourage people to easily move towards green energy sources and reduce their carbon footprint. 

As per the reports, most of the North Carolina energy suppliers have achieved their low Renewable Portfolio Standard (REPS) goals thanks to the easy transition to solar panel systems. 

People living in North Carolina who wish to switch to photovoltaic solar panel systems should apply for solar incentives to get their solar investment back and save a lot of energy costs in the future. If you wish to do so, this is the right time as several solar incentives are available in North Carolina for Residents, businesses, and non-profit solar projects this year. 

2024 Available North Carolina Solar Incentives 

There are many incentives and rebates available for North Carolina residents in 2024, and selecting one of them can be a daunting task, so we have curated the list of Solar incentives available in North Carolina to make it easy for you:

  • Federal Solar Tax Credit or Residential Clean Energy Tax Credit : 
  • North Carolina homeowners can access the Residential Solar Incentives through the Federal Solar Investment Tax Credit (ITC). 
  • New and NC homeowners can save around 30% (around $3,887) of their solar panel cost through the incentive. The ITC incentives will stay in NC for 2032.
  • The NC homeowners can claim this rebate once a year when the solar panel system is activated.  
  • The ITC covers the cost of labor, solar panels, batteries, additional equipment, and sales tax on the installation of the solar system.
  • The major highlight of the incentive is the taxes that a person owes are lower than the tax credit. 
  • NC Duke Energy Solar Rebate Program: 
  • It’s Duke Energy Service company credit for a residential, non-profit organization, and commercial customers offered only in North Carolina. 
  • The NC residents receive a rebate of 40 cents per watt under the Duke Energy Rebate program. Residential customers with a 5kW system can get a rebate of up to $2000 through this program.
  • Under the program, commercial customers are entitled to 30 cents per watt, resulting in a $30000 rebate 10 kW system.
  • The non-profit NC customers can unlock $0.75 per watt under the program. 
  • The NC residents who own the property where the solar arrays can be installed and hold the company’s account can apply for the Duke Energy Rebate program.
  • PowerPair Rebate: 
  • The power pair Rebate is the Duke Energy program, where the eligible Duke Energy customer with a solar-plus-battery system can earn a one-time rebate of $9000 for solar ( $36,00) and battery ($5400).
  • Customers with solar panel systems of 10kW and below can earn the incentives based on 36 cents/watt. However, the program was limited and only ran from May 2024 to June 2024, the remaining allocation of the program will be distributed on a first come first serve basis, so the NC Duke Energy Customers should immediately check with their company operators to avail of the program. 
  • Net Metering Program:
  • The NC residents can use the Net Metering program to sell the excess power generated through their solar panels and earn extra money. North Carolina electric companies ( Progress Energy, Duke Energy, and Dominion) have net metering available for their customers based on the retail rate. 
  • NC customers get the credit in their next month’s energy bill for every extra kilowatt generated by your solar panel system. 
  • Under the net metering, the companies will install a billing meter to measure the two-way flow of power between your solar panel system and grid. 

North Carolina Solar Tax Exemptions 

The North Carolina State has solar tax exemptions depending on the use of the installed solar panel system and ownership of the system. The NC Department of Revenue offers property tax exemptions to encourage people to add solar panel systems to their properties. 

Solar panel system installations increase the value of your home, which can increase the property tax. However, with solar property tax exemptions the government has seamlessly incentivized solar power installation among the citizens as they do not have to pay any tax for their property increasing value due to the solar panel system.

How much can North Carolina Solar Panels installation cost?

The NC residents can estimate their solar panel cost in 2024 based on the current study, which states that an average NC resident has to spend $2.54/watt on the solar panel system installation, which reduces to $1.77/watt after the NC solar incentives.

The standard cost of a 7-kW solar panel system in North Carolina ranges around $12,400 – $16000. The price of the solar panel system depends on the installer, state & federal incentives, roof type, solar panel quality, the size of the solar panel system, and local labor costs. 

Many NC electric companies offer consultation to their customers for their homes and businesses to select the best design solar panel system, the customers can utilize the installation consultation.

How to claim solar incentives in North Carolina?

NC residents can claim solar incentives from their electric companies’ websites or government rebate applications. For instance, you can claim the federal ITC (Solar Tax Credit)  with your annual federal tax return through Form 5695 for solar tax credit. 

The residents should first select the right solar installer for the solar panel system installation and apply for the solar incentives on the respective company website and government portal, most of the providers help the customers with the financing options, so you can easily claim these incentives.

The NC residents have many options available for solar incentives, so make sure you choose the right one that suits your electric needs and solar panel system.  

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