North Carolina 2022 Solar Tax Credits, Incentives, and More
North Carolina consistently ranks among the best states for solar power, but what kinds of incentives can residents take advantage of to reduce the cost of using solar power? In this article, we’ll provide an overview of all of the North Carolina solar tax credits, rebates, and other incentive opportunities available to homeowners, which have contributed to the local growth of clean energy.
The SEIA is pulling together detailed information on the solar industry in each state, and the outlook for North Carolina is very bright. According to the latest SEIA data, the state has more than 7,200 megawatts solar capacity, which is enough to power more than 846,000 homes. Accumulated investment in North Carolina’s solar industry now exceeds $ 9.8 billion, with more than 6,100 jobs created to date.
North Carolina has enacted pro-solar legislation. There is a net metering policy, which ensures that you get full credit when exporting excess solar power to the grid. There is also a law that allows low-interest green energy loans from county and city governments. Let’s dig.
Disclaimer: This article is for informational purposes only. It should not be relied on and is not intended to provide accounting, legal or tax advice.
Solar incentives in North Carolina
Although there are sunnier areas in the United States, the Global Solar Atlas shows that North Carolina gets good sunshine. The state also offers several incentive programs that improve your return on investment when you opt for solar power.
We’ll go into each solar incentive in North Carolina below, but if you haven’t already, we recommend getting a free quote from a certified installer in your area to see exactly how much those tax credits are worth. and discounts could save you money. To get started, you can use this tool or fill out the following form:
Solar Tax Incentives in North Carolina
North Carolina has offered a property tax exemption for solar panels and solar thermal electric systems since 2008. These systems increase the value of your property, like any other home improvement, but North Carolina does not impose this on you. increase. For example, if solar panels increase the value of a house from $ 270,000 to $ 300,000, the owner will still be taxed for a house of $ 270,000.
This advantage is also available for solar energy systems owned by commercial, industrial and agricultural energy users. However, in these cases, the property tax exemption applies for 80% of the value of the system, instead of the 100% exemption available to homeowners.
Net count in North Carolina
North Carolina offers net meters for solar power systems up to 1000 kW capacity, which cover all residential systems and many industrial and commercial solar systems. However, rented solar systems have a much lower limit for net metering: 20 kW or 100% of estimated demand, whichever is less.
The surplus electricity from your solar panels is credited to your next bill, which means you save the full value of the kilowatt-hours that are exported to the grid. However, your accumulated balance expires at the start of the summer billing period. It is recommended that you have an optimally sized solar power system, as an oversized system generates electricity that you can never subtract from your bills.
Duke Energy solar rebate
If you are a Duke Energy customer who is considering installing solar panels, you may be eligible for the utility company’s solar rebate program in North Carolina. The funding available for 2021 ran out very quickly, but you can put yourself on a waiting list for the program to reopen in 2022. The incentive per kilowatt varies depending on the type of customer, but the program website lists the following rates as of November 2021:
- Residential customer: $ 400 per kW, maximum system size 10 kW ($ 4,000)
- Non-residential customer: $ 300 per kW, maximum system size 100 kW ($ 30,000)
- Non-profit organisation : $ 750 per kW, maximum system size 100 kW ($ 75,000)
Keep in mind that the incentive programs run by energy companies tend to change frequently and their funding per year is limited. If you’re interested in the Duke Energy rebate, check the company’s website regularly so you don’t miss any updates.
NC funding program for renewable energies and energy efficiency
In North Carolina, city and county governments are legally permitted to offer low-interest loans for solar PV systems in homes and businesses. The loan program also covers other renewable energy technologies such as ground source heat pumps, wind turbines and biomass energy.
The maximum interest rate for these revolving loans is 8% and the maximum term is 20 years. This gives you the flexibility to install a solar panel system with loaned capital, and then use your electricity savings to pay it off over time. This means your personal expenses are reduced to zero and your solar power system can cover its own costs with the savings.
We’ve listed the top solar incentives available in North Carolina, but keep in mind that additional benefits may be available depending on where you live.
For example, the City of Asheville offers building permit discounts for homeowners and businesses that use solar panels and other green energy technologies. This North Carolina solar rebate changes depending on the technology used; in the case of solar panels, there is a $ 50 discount on your building permit application.
Federal solar tax credit
The Federal Solar Tax Credit is not a North Carolina incentive per se, since you can claim it anywhere in the United States. However, we mention this benefit here because you can combine it with local incentives.
- If you install a solar power system before the end of 2022, you can claim 26% of its value as a federal tax credit.
- The service will remain available in 2023, but it will be reduced to 22%.
- After the start of 2024, there will only be a 10% federal solar tax credit for businesses and 0% for housing.
FAQ: Solar Incentives in North Carolina
Does North Carolina have a solar tax credit?
No, there is no specific North Carolina solar tax credit. However, you can still claim the 26% federal tax credit.
Is it worth going solar in North Carolina?
It depends on your particular situation, but in general it’s worth going solar in North Carolina. The state offers a combination of incentives that lower your cost of ownership and decent sunshine that makes solar panels productive. Solar panels last over 25 years if they are of high quality, and you can get a payback period of less than 10 years in North Carolina.
Is solar increasing property taxes in North Carolina?
No, there is a 100% property tax exemption for residential solar systems. Your home is rising in value, but your property taxes are not increased. Company-owned solar energy systems benefit from an 80% exemption from property tax.
What is the 26% solar tax credit?
In a nutshell, for every dollar invested in a solar power system, you can claim 26 cents on your next tax return. For example, if you buy a 6 kW solar home system for $ 18,000, you can claim a tax credit of $ 4,680 (26% of $ 18,000).
Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy and solar efficiency consulting experience spans industries such as banking, textile manufacturing, plastics processing, pharmaceuticals, education, food processing, fast food, real estate and retail. detail. He has also written articles on energy and engineering related topics since 2015.