Solar Incentives in North Carolina
In 2026, North Carolina homeowners installing solar have access to several active state-level incentives. Under G.S. 105-275(45), 80% of the appraised value of a solar electric system is excluded from the property tax base, meaning most of the value a PV installation adds to a home is never taxed. A separate provision, G.S. 105-277(g), ensures that buildings with active solar heating or cooling systems are assessed as if they had conventional systems, with no added taxable value for the cost difference. For grid-connected systems, net metering is available through successor riders that took effect October 1, 2023: Rider RSC (Residential Solar Choice) credits excess exports at the utility's avoided-cost rate, while export rates and rider charges vary by Duke Energy tariff and are not uniform statewide. Lower-income households may also benefit from EnergizeNC, North Carolina's Solar for All program backed by a $156.12 million EPA grant, though household-level award amounts are determined by program design. Community solar subscriptions under G.S. 62-126.8 offer another pathway for those who cannot or prefer not to install rooftop systems.
The federal picture has changed materially for new installations. The residential Clean Energy Credit under §25D — which had provided a 30% federal tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners installing solar in 2026 should not expect this credit to reduce their federal tax liability, and payback periods will generally be longer than in prior years without it.
North Carolina's residential electricity rate averaged approximately 16.00 cents per kilowatt-hour as of March 2026, up about 1.20 cents from the prior year. At that rate, solar generation offsets meaningful electricity costs annually, and the state's property-tax protections limit the carrying cost of ownership — but with the federal credit gone, project economics depend more heavily on those state provisions and on each utility's specific export compensation terms.
These figures are verified as of June 2026 against official sources; programs and rates change with each legislative session and utility rate case — the North Carolina Utilities Commission and the N.C. Department of Revenue are the authoritative sources for current program terms.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in North Carolina
Property Tax Exclusion for Solar Energy Electric Systems (G.S. 105-275(45))
North Carolina excludes 80% of the appraised value of a solar energy electric system from property taxation. The statute defines a solar energy electric system as all equipment used directly and exclusively to convert solar energy to electricity, so most of the value a PV installation adds to a property is never taxed. The exclusion is applied at the county assessment level; owners should make sure their county assessor knows about the installation.
| Amount | 80% of the appraised value of the solar electric system is excluded from the property tax base. |
|---|---|
| Who qualifies | Owners of real property in North Carolina with equipment used directly and exclusively for converting solar energy to electricity. |
| Administered by | County tax assessors / N.C. Department of Revenue (property tax oversight) |
Source: N.C. Gen. Stat. § 105-275(45) Official source →
Special Assessment for Buildings with Active Solar Heating or Cooling Systems (G.S. 105-277(g))
Buildings equipped with active solar heating or cooling systems are a special class of property in North Carolina. They must be assessed for property tax as if they had conventional heating or cooling, and no additional value may be assigned for the cost difference between the solar system and a typical conventional system. The classification covers the system's controls, tanks, pumps and related hardware.
| Amount | No added assessed value for the cost difference between a solar heating/cooling system and a conventional system. |
|---|---|
| Who qualifies | Owners of buildings equipped with solar energy heating and/or cooling systems. |
| Administered by | County tax assessors / N.C. Department of Revenue (property tax oversight) |
Source: N.C. Gen. Stat. § 105-277(g) Official source →
Net Metering (Residential Solar Choice and Net Metering Bridge riders)
Under a March 23, 2023 N.C. Utilities Commission order in Docket E-100, Sub 180, the legacy residential net metering rider (Rider NM) closed to new customers on September 30, 2023, and two successor riders took effect October 1, 2023. Rider RSC (Residential Solar Choice) requires service on a time-of-use rate with critical peak pricing and adds a minimum monthly bill, non-bypassable charges, and a grid access fee for systems over 15 kW AC; monthly net exports are credited at the utility's avoided-cost rate. Rider NMB (Net Metering Bridge) is similar but does not require the time-of-use rate; it has annual enrollment limits and customers may stay on it up to 15 years. Customers grandfathered on Rider NM transition to Rider NMB after December 31, 2026.
| Amount | Net exports credited at the utility's avoided-cost rate each month under Rider RSC; rider charges and credits vary by Duke Energy utility — see the Commission order in Docket E-100, Sub 180 and the utilities' rate schedules. |
|---|---|
| Who qualifies | Residential customers of Duke Energy Carolinas and Duke Energy Progress with grid-connected solar; Rider NMB enrollment is capped annually. |
| Administered by | North Carolina Utilities Commission (Duke Energy Carolinas / Duke Energy Progress tariffs) |
Source: NCUC Docket No. E-100, Sub 180 (Order Approving Revised Net Metering Tariffs, Mar. 23, 2023); N.C. Gen. Stat. § 62-126.4 Official source →
Community Solar Energy Facilities (G.S. 62-126.8)
North Carolina law requires each offering electric utility to file a community solar program with the Utilities Commission so retail customers can subscribe to shared solar facilities. Each facility must serve at least five subscribers, no subscriber may hold more than a 40% interest, and facilities are capped at 5 MW each with a 20 MW total program cap per utility. Subscriptions must be at least 200 W and may not exceed 100% of the subscriber's annual peak demand, and subscribers generally must be in the same or a contiguous county as the facility.
| Amount | Subscribers receive bill credits for their share of facility output; credit rates are set in the utility's Commission-approved plan. |
|---|---|
| Who qualifies | Retail customers of offering utilities, located in North Carolina in the same or a contiguous county as the facility (Commission may waive up to 75 miles); first-come, first-served. |
| Administered by | North Carolina Utilities Commission / offering electric utilities |
Source: N.C. Gen. Stat. § 62-126.8 Official source →
EnergizeNC (North Carolina Solar for All)
EnergizeNC is North Carolina's Solar for All program, funded by a $156,120,000 EPA grant awarded April 22, 2024. The coalition is led by the N.C. Department of Environmental Quality's State Energy Office with the NC Clean Energy Technology Center, NC Clean Energy Fund, and Advanced Energy. It funds residential and community solar (with associated storage) for low-income and disadvantaged households statewide, with household services launching after a planning period that targeted late 2025.
| Amount | $156.12 million total program funding; household-level incentive amounts are set by program design — see EnergizeNC program materials. |
|---|---|
| Who qualifies | Low-income and disadvantaged households and communities across North Carolina, including state- and federally-recognized tribal lands. |
| Administered by | N.C. Department of Environmental Quality — State Energy Office (EnergizeNC coalition) |
Source: program page (NC DEQ State Energy Office, EPA Solar for All award) Official source →
Commercial Property Assessed Capital Expenditure (C-PACE) Program
North Carolina's C-PACE Act (2024) authorizes a statewide program that local governments may voluntarily join. Owners of commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more units can obtain low-cost, long-term private financing for qualifying improvements, including renewable energy, energy efficiency, water conservation, and resilience projects. Financing is secured by a voluntary special assessment and lien on the improved property and uses private capital rather than public funds.
| Amount | Financing terms are set by private capital providers under the statewide program; no fixed state incentive amount. |
|---|---|
| Who qualifies | Commercial, industrial, agricultural, nonprofit, and multifamily (5+ unit) property owners in local government jurisdictions that have joined the program; not available for single-family homes. |
| Administered by | Statewide C-PACE program administrator under the C-PACE Act; participating local governments |
Source: N.C. Gen. Stat. ch. 160A, art. 10B (§ 160A-239.11 et seq.) Official source →
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Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.