North Carolina’s solar incentive picture has changed significantly. Through 2025, NC was one of the best solar states in the country — the combination of the federal tax credit and the state’s own 35% solar credit could offset most of a typical system’s cost. Both of those credits are now expired. If you’re buying solar in NC in 2026, here’s an honest look at what’s actually on the table.
Here’s exactly what’s available, who qualifies, and what the math actually looks like.
What Happened to the Federal Solar Tax Credit
The 30% federal Investment Tax Credit (ITC) expired December 31, 2025 for homeowners who purchase solar with cash or a loan. Through 2025, this credit gave buyers 30% of their total installation cost back as a federal income tax credit — on a $27,000 system, that was $8,100 off your federal tax bill in the year of installation.
That credit is gone for purchased residential systems installed in 2026. Financing with a solar loan doesn’t qualify either. The only remaining path to a version of this benefit is through a solar lease or PPA — in that arrangement, the solar company owns the system and can claim the commercial 48E credit through 2027, often passing savings along through lower monthly payments. For a full breakdown, see our Federal Solar Tax Credit 2026 guide.
North Carolina’s 35% State Solar Tax Credit — Expired Since 2015
North Carolina used to have one of the best state-level solar incentives in the country: a 35% income tax credit on installation costs, capped at $10,500 for residential systems. On a $27,000 system, that was worth up to $9,450 off your state tax bill, claimed over five years on Form D-400TC.
That credit expired December 31, 2015 and has not been renewed. There is currently no state income tax credit for residential solar in North Carolina. Any installer or website claiming you can claim a 35% NC state solar tax credit is giving you information that is more than a decade out of date.
Duke Energy PowerPair: Up to $9,000 for Solar + Battery
The most significant solar incentive currently available to many NC homeowners is Duke Energy’s PowerPair program, which provides up to $9,000 in rebates for installing both solar panels and a qualifying battery storage system. Unlike a tax credit, this is a direct rebate that doesn’t depend on your tax liability — and it can be applied whether you purchase or finance your system.
PowerPair is available to Duke Energy Carolinas and Duke Energy Progress customers. Enrollment is limited and awarded on a first-come, first-served basis. Ask your installer whether they’re a PowerPair-certified contractor and check current availability directly with Duke Energy before signing a contract, as program capacity changes frequently.
Duke Energy and Duke Progress Net Metering in NC
North Carolina utilities are required to offer net metering, and Duke Energy Carolinas and Duke Energy Progress — which serve most of the state — credit excess solar production at the full retail rate. In most NC service territories, that’s around $0.12–$0.14 per kWh for energy sent back to the grid.
Net metering in North Carolina has faced pressure in recent rate cases. The state Utilities Commission is reviewing compensation structures, and future policy changes could reduce the value of excess generation for new installations. Locking in solar now provides existing-customer rate protection under current interconnection agreements.
NC Property Tax Exemption for Solar
Like most Southern states, North Carolina exempts residential solar systems from property tax assessment. The value added to your home by a solar installation is excluded from your taxable assessed value under state law. In a county with a 1% property tax rate, a $27,000 system represents about $270/year in property taxes you don’t pay — roughly $5,400 over 20 years.
Sales Tax and Local Incentives
Solar equipment in North Carolina is subject to the standard 4.75% state sales tax, plus local rates — there’s no blanket sales tax exemption as you’d find in Florida. Some counties and municipalities have offered solar incentives through their local programs, and certain NC utility cooperatives run rebate programs. Check with your county government and your specific electric cooperative or utility before signing a contract to see what’s currently available.
The Real Savings Picture for NC Solar in 2026
With neither the federal ITC nor the state credit available for new cash or loan purchases, the financial picture looks different from what many websites still claim. Here’s what a 10kW system at $27,000 realistically looks like for a 2026 NC buyer:
Duke Energy PowerPair rebate (if eligible): up to -$9,000. Net metering savings at ~$110/month: ~$26,400 over 20 years. Property tax exemption at 1% county rate: ~$5,400 over 20 years. Effective payback period without PowerPair: 10–13 years depending on location, shading, and utility rate changes. With the PowerPair rebate, net cost drops to roughly $18,000 and payback can shorten to 6–9 years — making that rebate the most meaningful lever for NC buyers right now.
How to Access NC Solar Incentives in 2026
Net metering is handled through your interconnection agreement with Duke Energy — your installer typically manages this paperwork as part of the project. The property tax exemption applies automatically through your county assessor’s office once your system is permitted and installed.
For the Duke Energy PowerPair rebate, you must apply through Duke’s program portal before installation begins — the rebate is reserved, not claimed after the fact. Ask your installer about PowerPair certification before signing any contract.
There is no IRS form to file or state tax return to amend for new 2026 purchased solar installations in North Carolina. The credits that required Form 5695 (federal) and Form D-400TC (state) are both expired.
Compare Solar Quotes in North Carolina
North Carolina’s solar market is competitive, and installer pricing varies significantly. Compare quotes from multiple companies to maximize your savings—especially if you’re targeting Duke Energy’s net metering program.
- EnergySage — compare competing quotes from vetted North Carolina solar installers
- DSIRE North Carolina — official database of every NC solar incentive, rebate, and policy (maintained by the NC Clean Energy Technology Center)
- Best Solar Installers in Charlotte, NC — our top picks for the Charlotte metro
Take the Next Step: Understanding your incentives is step one. Step two is getting quotes from installers who know how to stack them. Compare free quotes on EnergySage from vetted NC solar companies.