North Carolina Solar Incentives: 2025 Overview

North Carolina offers a tax credit equal to 35% of the cost of eligible renewable energy property constructed, purchased or leased by a taxpayer and placed into service in North Carolina during the taxable year. The credit has been amended several times since its original inception. House Bill 512 of 2009 extended the eligibility to geothermal equipment, extended the expiration date to December 31, 2015, and allowed the credit to be taken against the Gross Premiums Tax. HB 1829 of 2010 further extended this credit to combined heat and power systems. The credit is subject to various ceilings depending on sector and the type of renewable-energy system. The credit can be taken against franchise tax, corporate tax, income tax, or in the case of insurance companies, against the gross premiums tax.

A taxpayer may claim a credit of 30% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

Residential customers: $6,000 rebate maximum. Customers can get 60 cents per watt of solar energy installed. A larger system may be installed, but this incentive is limited to up to 10 kW.

Residential customers: $6,000 rebate maximum. Customers can get 60 cents per watt of solar energy installed. A larger system may be installed, but this incentive is limited to up to 10 kW.

A taxpayer may claim a credit of 26% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 22% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

Residential customers: $4,000 rebate maximum. Customers can get 40 cents per watt of solar energy installed. A larger system may be installed, but this incentive is limited to up to 10 kW.

A taxpayer may claim a credit of 30% for the installation which was between 2022-2032 (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit), with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the placed in service date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.

Duke Energy Progress is offering incentives for their residential customers to install photovoltaics (PV) systems on their homes through their SunSense Program. The incentive is multifaceted. Customers will receive an upfront payment of $250 for every kilowatt-AC (kW-AC) they install on their home, and they will receive monthly credits on their bill of $4.50 per kW-AC. For instance, if a customer installs a 10 kW-AC system, the largest system eligible to participate in the program, the customer will receive a check for $2,500 plus a bill credit of $45 on their monthly bills. To participate in the program, the customer must surrender all their Renewable Energy Credits (RECs) to Duke Energy Progress for a period of five years and they will receive the $4.50 per kW bill credits throughout those five years. After those first five years, there may be an opportunity for the customer to renew their REC contract with Progress Energy under the terms of the agreement that exists at that time.

Residential customers: $6,000 rebate maximum. Customers can get 60 cents per watt of solar energy installed. A larger system may be installed, but this incentive is limited to up to 10 kW.

Residential customers: $6,000 rebate maximum. Customers can get 60 cents per watt of solar energy installed. A larger system may be installed, but this incentive is limited to up to 10 kW.

Residential customers: $6,000 rebate maximum. Customers can get 60 cents per watt of solar energy installed. A larger system may be installed, but this incentive is limited to up to 10 kW.