North Carolina Solar Incentive Programs

9 yr
Avg. payback
$1,200/yr
Avg. annual savings
None
State tax credit
varies by utility
Net metering rate
Federal tax credit update: The 30% residential solar tax credit (Section 25D) ended for systems whose installation was completed after December 31, 2025, under Public Law 119-21. Systems whose installation was completed in 2025 can still claim it on a 2025 return. New 2026 installations do not qualify for homeowners who buy. What changed

Net Metering in North Carolina: A Two-Tier System

North Carolina's net metering landscape is determined by when you go solar and which utility serves you. Duke Energy (the dominant utility) transitioned to sub-retail export credits in 2023. Dominion Energy NC still offers retail-rate crediting in its service area.

Legacy Net Metering Ends January 1, 2027 (G.S. 62-126.4) Duke Energy's legacy net metering program, which provided 1:1 retail-rate credits, closed to new applicants once the NCUC approved Duke's revised net metering rates under G.S. 62-126.4. Customers who enrolled before that date are grandfathered at the legacy rate until January 1, 2027 (G.S. 62-126.4(c), enacted by SL 2017-192). Starting January 1, 2027, Duke Energy's residential net metering options in North Carolina are the Net Metering Bridge Rider and the Residential Solar Choice Rider; check the current export credit rate with Duke Energy.

Duke Energy (Carolinas & Progress), Serves Most of NC

Net Metering Bridge (Rider NMB)
Duke Energy Carolinas · Duke Energy Progress · New customers 2023 to 2026
Verify with Duke Energy Utility
▼
  • ProgramNet Metering Bridge (Rider NMB), filed pursuant to SL 2023-138; verify current status with Duke Energy
  • StatusVerify current availability and any application deadlines directly with Duke Energy at duke-energy.com
  • Export credit rateAvoided cost rate (set periodically by NCUC, below retail rate)
  • Self-consumption creditWithin-month generation offsets consumption at retail rate (1:1)
  • Non-bypassable chargesGrid maintenance charges apply regardless of solar production
Verify NMB program details directly with Duke Energy Specific NMB terms, enrollment deadlines, duration, monthly minimums, and fee structures, are set in Duke Energy's filed tariff and are subject to NCUC approval. Duke Energy's website (duke-energy.com) is the primary source for current program terms and application timelines.
Legacy Net Metering (Grandfathered Only)
Duke Energy · Pre-October 2023 customers only
Closed to New Utility
▼
  • EligibilityCustomers who enrolled before Duke Energy filed revised rates under SL 2023-138
  • Export credit rateFull retail rate (1:1 credit for all exported energy)
  • Program endLegacy rate ends January 1, 2027 (G.S. 62-126.4(c), SL 2017-192)
  • TransitionAfter January 1, 2027, legacy customers move to Duke Energy's current net metering structure, verify terms with Duke Energy
If you are currently on legacy net metering G.S. 62-126.4(c), enacted by SL 2017-192, provides that customers who interconnected before new rates were approved may continue at the legacy rate until January 1, 2027. After that date, the legacy rate ends and you transition to Duke Energy's current net metering structure. Verify the transition terms and any required actions with Duke Energy directly.
Residential Solar Choice (RSC), Starting January 2027
Duke Energy · All new customers after Dec 31, 2026
Utility
▼
  • Available toNew solar customers applying on or after January 1, 2027
  • Rate structureMandatory time-of-use (TOU) pricing with Critical Peak Pricing
  • Critical Peak PricingHigher rates apply on designated high-demand days; verify current CPP terms with Duke Energy
  • Export creditAvoided cost rate for excess generation (same as NMB)

Under RSC, system design and load management become more important. A well-sized system paired with smart usage habits or battery storage can still deliver strong savings under TOU, but the economics are more complex than under legacy net metering.

Dominion Energy North Carolina, Serves Eastern NC

Dominion Energy NC Net Metering
Retail-rate credit · Eastern North Carolina service area
Open Utility
▼
  • Export credit rateRetail rate, full retail value for excess energy (verify current rate with Dominion Energy NC)
  • Eligible technologiesSolar and other qualifying renewable energy systems
  • Program detailsVerify current system size limits, fees, credit rollover terms, and application requirements directly with Dominion Energy NC
Dominion NC: Retail-rate export credits Dominion Energy NC has offered retail-rate credits for exported solar energy, a more favorable structure than Duke Energy's avoided-cost program. If you are in eastern NC served by Dominion, confirm your utility and verify current program terms at dominionenergy.com/north-carolina before making financial decisions.

Duke vs. Dominion: Side-by-Side Comparison

The utility that serves your address determines the economics of going solar in NC. This difference is significant.

Feature Duke Energy (DEC/DEP) Dominion Energy NC
Export credit rate Avoided cost (below retail) Full retail rate
Max system size NCUC rules, verify with Duke Energy; NCGS § 62-133.8 references 1 MW threshold Verify with Dominion Energy NC
Credit rollover Verify current terms with Duke Energy Verify current terms with Dominion Energy NC
Monthly minimum / fees Verify with Duke Energy Verify with Dominion Energy NC
Legacy grandfathering end January 1, 2027 (G.S. 62-126.4(c), Tier 1 confirmed) Not applicable
After 2026 new customers TOU + Critical Peak Pricing required Current program continues

North Carolina State Incentives

NC's standout state-level incentive is the 80% property tax exclusion, one of the strongest in the Southeast. However, note pending legislation that could affect systems installed after mid-2027.

80% Property Tax Exclusion
NCGS § 105-275(45) · Current law · All counties
Active State
▼
80% of solar system value excluded from property tax Under NCGS § 105-275(45), eighty percent of the appraised value of a solar energy electric system is excluded from ad valorem property taxation. Only 20% of the system's assessed value is taxable. This exclusion applies statewide and significantly reduces the property tax impact of adding solar.
  • StatuteNCGS § 105-275(45)
  • Exclusion amount80% of appraised value of the solar energy electric system
  • Taxable portion20% of appraised value subject to local ad valorem tax rates
  • Applies toEquipment used exclusively and directly for converting solar energy to electricity
  • Current statusActive as of October 16, 2026
Pending Legislation: HB 1213 (2025 to 2026 Session) House Bill 1213, which was reported from the NC House Finance Committee and re-referred to the House Energy and Public Utilities Committee on June 30, 2026, would eliminate the 80% property tax exclusion for solar systems placed in service on or after July 1, 2027. As of October 16, 2026, this bill has NOT been enacted into law. Current systems and systems installed before any effective date would be grandfathered. Monitor this bill's progress before making long-term tax planning decisions; verify current law directly with the NC Legislature or your county tax assessor.
State Income Tax Credit
NCGS § 105-129.16A · Repealed
Expired State
▼
NC's state solar income tax credit ended December 31, 2015 North Carolina previously offered a state solar income tax credit. The credit expired December 31, 2015, and the authorizing statute (NCGS § 105-129.16A) was formally repealed by Session Laws 2017-57 (effective May 5, 2017, Tier 1 confirmed). No state solar income tax credit currently exists for residential installations in North Carolina.
Sales Tax Exemption
NCGS § 105-164.13 · Residential
Not Available State
▼
No residential solar sales tax exemption in North Carolina North Carolina's sales tax exemption statute (NCGS § 105-164.13) does not include an exemption for residential solar panel purchases. Residential homeowners pay the applicable state and local sales tax on solar equipment purchases. North Carolina's combined state and average local sales tax rate is approximately 6.75 to 7.5% depending on county.

Federal Solar Tax Credit, 2026 Status

The federal residential solar ITC, historically a major driver of solar economics, was eliminated by legislation signed in 2025.

§25D Residential Solar ITC
Internal Revenue Code · P.L. 119-21
Eliminated Federal
▼
30% federal credit eliminated for new installations The One Big Beautiful Bill (P.L. 119-21), signed July 4, 2025, eliminated the §25D residential solar investment tax credit for systems whose installation was completed after December 31, 2025. New residential solar installations in 2026 do not qualify for the 30% federal credit.
  • Systems installed through 12/31/202530% credit available (file with 2025 taxes)
  • Systems installed 1/1/2026 onward§25D credit not available
  • LegislationP.L. 119-21, signed July 4, 2025

North Carolina Solar Savings Estimator

Estimates based on Duke Energy Net Metering Bridge avoided-cost export structure. Select your utility for a more relevant estimate.

Duke Energy NMB: self-consumed energy saves at retail rate; exported energy credited at avoided cost (~3 to 4¢/kWh). These figures are illustrative, verify the current avoided cost rate with Duke Energy.

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Annual production (kWh)
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Est. annual savings
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Simple payback (years)
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25-year cumulative savings

Estimates only. Assumes ~1,500 to 1,600 kWh/kW/year production (NC average), 70% self-consumption, 13¢/kWh retail rate. Duke NMB export rate assumed at 3.5¢/kWh (avoided cost, illustrative only; verify current rate). Dominion NC assumes retail rate for all exported energy. No federal tax credit applied (eliminated for 2026). Results are illustrative; consult a licensed NC solar installer for a site-specific assessment.

What North Carolina Homeowners Should Know

North Carolina's solar market is in a period of transition. The January 1, 2027 legacy net metering end date (G.S. 62-126.4), pending property tax legislation, and the eliminated federal ITC all factor into timing decisions.

The NC Net Metering Transition
What G.S. 62-126.4 means for your timeline
▼

Under G.S. 62-126.4(c) (SL 2017-192), Duke Energy legacy net metering customers are grandfathered at the retail rate until January 1, 2027. After that date, the legacy rate ends and all Duke solar customers operate under the Net Metering Bridge or Residential Solar Choice structure. New Duke solar customers today are already on the NMB (avoided-cost) structure. Specific NMB deadlines, enrollment terms, and transition details are governed by Duke Energy's NCUC-filed tariff, verify directly with Duke Energy.

  • If you are on legacy net metering, your retail-rate credits continue until January 1, 2027, verify your transition terms with Duke Energy before that date
  • If you are a new Duke solar customer, confirm which program you are enrolling in and its current terms at duke-energy.com
  • Program specifics (deadlines, fees, duration) are in Duke Energy's filed tariff, ask your installer to confirm current terms
Property Tax Exclusion: Current and Pending
80% exclusion is active now; monitor HB 1213
▼

The 80% property tax exclusion under NCGS § 105-275(45) is significant. For a 10 kW system valued at $24,000, only $4,800 of that value is subject to local property taxes, compared to the full amount in most states without an exemption. The savings depend on your county's property tax rate but are meaningful over the system's lifetime.

HB 1213 (re-referred to House Energy and Public Utilities, June 30, 2026) would limit this exclusion to systems placed in service before July 1, 2027. This bill has not been enacted as of October 16, 2026. Continue monitoring NC Legislature updates through ncleg.gov.

HOA and Solar Access
North Carolina law and HOA covenants
▼

North Carolina does not have a statewide law prohibiting HOAs from restricting solar installations. HOA covenants may restrict or prohibit solar panel placement. If your HOA covenants address solar, review them carefully and consult a North Carolina real property attorney if needed. Some NC HOAs have voluntarily adopted solar-friendly policies.

Primary Sources, Verified Claims and Source Notes

Statutes verified from NCLEG.gov (Tier 1). The January 1, 2027 legacy net metering end date (G.S. 62-126.4(c)) is Tier 1 confirmed. Duke Energy NMB and Dominion NC program-specific terms require direct verification with each utility. Calculator figures are illustrative estimates only; verify current avoided cost rate with Duke Energy. Page last audited September 2026. Verify all incentive details with your utility and a licensed NC solar installer before making financial decisions.

Get quotes from North Carolina solar installers

Local installers know the North Carolina incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.

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Incentives and rates change often and depend on your utility, location and tax situation. Confirm the details that apply to you with your utility and a licensed tax professional before you sign a contract.