Solar in North Carolina: incentives, costs and payback (2025)

North Carolina ranks among the top US states for solar installations, with good solar resources, supportive policies, and competitive installation costs.

North Carolina solar incentives

Federal tax credit (30%) The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of your solar installation cost from your federal taxes. This credit is available through 2032.

Property tax exemption Solar energy systems are exempt from property tax assessments in North Carolina, meaning your property taxes won't increase despite the added home value.

Net metering North Carolina utilities are required to offer net metering, allowing you to receive credit for excess power your system generates.

Utility programmes Several North Carolina utilities offer additional incentives:

• Duke Energy: Time-of-use rates that can benefit solar customers
• Cape Fear Public Utility: Solar rebate programmes
• ElectriCities: Group purchasing programmes for municipal customers

Local incentives Some North Carolina cities and counties offer additional solar incentives:

• Asheville: Building permit fee waivers
• Chapel Hill: Solar installation rebates
• Various counties: Property tax abatements

Cost and payback in North Carolina

Average installation cost Solar panels in North Carolina cost an average of $3.00 per watt before incentives. A typical 6kW system costs:

• Gross cost: $18,000
• After federal tax credit (30%): $12,600
• With utility rebates: $11,100-12,100 (varies by utility)

Payback time With North Carolina's moderate electricity rates (average $0.12/kWh) and good solar irradiance, most solar systems pay for themselves in 8-10 years.

Annual savings A typical 6kW system in North Carolina generates about 8,400 kWh annually, saving homeowners $1,000 per year on electricity bills.

Net metering and electricity rates

North Carolina's net metering policies vary by utility:

• Net metering available from all major utilities
• Credit rates may be at retail or avoided cost rates
• Time-of-use billing is becoming more common
• Monthly rollover of excess credits in most cases

Average electricity rates in North Carolina are $0.12/kWh, which is moderate compared to other states.

Solar potential and climate

North Carolina offers good solar conditions:

• Solar irradiance: 4.5-5.0 kWh/m²/day average
• Sunshine hours: 4.5-5.5 hours daily depending on region
• Climate considerations: Mild winters, hot summers
• Best regions: Western mountains and coastal areas

Best solar companies in North Carolina

North Carolina has many qualified solar installers. We recommend getting quotes from:

• SunPower: Premium panels with excellent warranties
• Sunrun: National provider with local service
• Tesla Solar: Competitive pricing and battery options
• Local installers: NC Solar Now, Yes Solar Solutions, Cape Fear Solar

Get quotes from at least three installers to compare pricing and proposals.

Regulatory environment

North Carolina's solar-friendly policies include:

• Renewable Energy Portfolio Standard: Requiring utilities to source renewable energy
• Net metering mandate: All utilities must offer net metering programmes
• Interconnection standards: Streamlined process for connecting solar systems
• Building codes: Solar-ready construction requirements in some areas

Next steps

1. Calculate your potential savings with our solar calculator
2. Check your utility's specific programmes and rate structures
3. Get multiple quotes from certified installers
4. Consider system orientation (south-facing roofs are optimal)
5. Review financing options including cash purchases and solar loans

North Carolina's strong solar market and supportive policies make it an attractive state for solar adoption in 2025.

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