North Carolina solar tax credits, incentives and rebates (2024 guide)
- by USA Today
- Oct 16, 2024
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Incentive value: Varies based on utility and energy values
Frequency: Ongoing
Net energy metering allows you to send excess solar energy back into the power grid in exchange for energy credits, which can be used to pay your power bills. North Carolina has had a strong net energy metering program for many years. However, in 2023, North Carolina changed its net metering, making it less beneficial to the homeowner. The current net metering program offers a time-of-use, avoided cost rate, which means customers receive fewer credits.
Moreover, customers must now pay non-bypassable charges associated with cost recovery for Duke’s demand-side management programs. This amounts to 44 cents per kW per month for Duke Energy Progress and 36 cents per kW per month for Duke Energy Carolinas. As a net metering customer, you’ll also need to pay a monthly minimum bill of $28 for Duke Energy Progress and $22 for Duke Energy Carolinas.
Homes with systems over 15 kW also need to pay a monthly grid access fee of $1.50 per kW per month for Duke Energy Progress and $2.05 per kW per month for Duke Energy Carolinas.
Despite the downgrade in benefits, net metering in North Carolina can still help you save money while providing flexibility for your system’s energy usage. Your installer will apply for a grid interconnection during installation so you can participate in net metering.
What are the federal solar tax credits?
The Investment Tax Credit (ITC), commonly known as the federal solar tax credit, is a notable solar incentive. When you install a solar panel system, you’ll receive a tax credit equivalent to 30% of your system’s purchase cost.
You can use this credit to pay your income tax. Effectively, this reduces your system’s net cost by nearly a third. However, you can only use a credit amount that is equal to or lower than the taxes you owe. For example, if your solar system costs $15,000, you can save about $4,500. To apply for the ITC, submit the IRS Form 5695 when filing your taxes.
Are solar panels worth it in North Carolina?
Solar panels are worth it in North Carolina, thanks to the state’s abundant solar resources and multiple incentives. Installing solar panels offers several financial and nonfinancial benefits. Here is a list of the key benefits of solar in North Carolina.
Utility bills
On average, North Carolina residents pay about $128 per month for electricity bills, according to the EIA. This adds up to $1,536 per year and around $42,000 over the course of 25 to 30 years.
Solar photovoltaics (PV) systems may require a large upfront investment, but they generate free energy for 20 to 30 years — according to the International Association of Certified Home Inspectors — saving you significant money on monthly bills.
Energy independence
When you generate your own energy using solar panels, you’re less dependent on electric utilities. You’re also far less affected by electricity price hikes and power outages. Installing a solar panel and battery system can help you easily tackle a blackout or a brownout by ensuring your home’s appliances are operational.
North Carolina ranks among the top 10 states for power outages.
Maintenance
Solar energy systems have some of the lowest maintenance requirements compared to fossil power systems — even compared to other clean energy sources. Because they don’t have moving parts such as turbines or rotors, solar panels have no wear and tear and thus rarely require repair, replacement, lubrication or similar maintenance operations.
Generally, you’ll only need to clean solar panels to maximize their performance. North Carolina sees enough rain throughout the year, so you typically won’t need to clean your panels very much. However, if you live in a location with more dust due to construction or wildfires, you should clean the panels occasionally with a hose and tap water.
What’s next?
North Carolina’s solar incentives are an excellent reason to switch to solar. Most notably, the federal tax credit and Duke Energy solar rebate can save you thousands of dollars. If you are thinking of going solar, research the top solar companies in your location to see which suits your needs.
Check company reviews and credentials, and compare multiple quotes before deciding. You may want to know how many solar panels you need and what solar panel payment options are available. It’s wise to keep an eye on changing incentives and policies so that you can have a better idea of your system’s predicted savings.
Additional home services
If you’re looking for additional home services in the Tar Heel State, check out our other articles:
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