North Carolina Solar Incentives: Rebates & Free Panels for Low Income Families?

Every state has upped its game when it comes to solar incentives, and North Carolina is not any different.

Such programs are here to help if you find the upfront price tag a bit overwhelming, and it is understandable. If that is the only thing holding you back from finally turning your house green, you are in luck because you don’t have to bear the burden alone, thanks to what the local government is doing.

This guide explains North Carolina Solar Incentives and how you can use them to lower the cost of solar panels in North Carolina for your home or farm.

Solar Power in North Carolina

Good news for you if you live in North Carolina and are thinking about finally making the switch to solar. Imagine being number 4 in the entire country when it comes to solar power adoption (ranking in the third quarter of 2022).

This is something to brag about because it obviously means that it is one of the best places for you to go solar.

Did you also know that more than 9% of all the power used in North Carolina comes from solar?⁵ It makes you wonder exactly why are that many people placing their faith in such a non-traditional energy source.

The answer is simple; it is cheaper. With the economy being hard on various sectors, North Carolinians are looking to save money wherever they can.

In comparison to grid electricity, solar power is cheaper to produce, regardless of what the upfront cost states. The utility bills keep coming, and each time it is gruesome to take out a large chunk of your money to pay them.

It is even more painful to realize that the costs keep rising and rising.

Thankfully, solar is immune to energy inflation, and once the panels pay off, you will gladly be enjoying electricity at almost no cost. Exciting right?

Solar seems to be the future of energy, and if the statistics are anything to go by, North Carolina is probably the best place for you to install solar panels.

How Much Are Solar Panels in North Carolina: Cost of Solar Panels in North Carolina

Another round of good news is that the cost of solar panels in North Carolina is below the national average.¹⁰ Whereas it is estimated that the panels cost $2.66 a watt in most parts of the country, it will cost you about $2.54 for every watt, which is slightly lower but still worth a huge difference when you get down to the numbers.

To put it more clearly, installing solar panels in your home will set you back anything between $11,340 – $15,350. Although it is still a bit pricey, at least the tag is lower than in many parts of the country.

And what is the best part? There are still some solar incentives that you can take advantage of if you want to reduce the cost, which can be, by a massive margin, five digits even.

Another sigh of relief is that the installation may cost way less than the average estimate, that is depending on factors like your energy needs, the number of panels you need, your type of roof, and several others, just to name a few.

What Are the Factors Affecting the Cost of Solar Panels in North Carolina?

This is quite a complicated subject matter because while panels seem expensive to one user, another one may find them pretty affordable. The secret is in what works for you.

Remember that the goal is to find a customized system that works specifically for you that is properly cut out to serve all your energy needs.

Unfortunately…or in some cases, luckily, the price is subject to change based on your current needs, and here are some reasons why.

#1 The Type of Installation

Of course, the price will change based on how the installation turns out. Those who know how to install solar panels on roof will tell you that the simplest and cheapest way to go is roof mounting.

There is absolutely no need for over-the-top props and materials, and it takes a shorter time to mount them.

But the same cannot be said for ground mounting, which is, unfortunately, your only way out if you don’t have enough room on your roof, have damages on it that need repair, or simply cannot risk the shear force and weight of the panels on top of your house. Sadly for you, it would mean digging deeper into your pockets.

#2 The Power Density of the Panels

If you are hearing this for the first time, bear in mind that every panel has a power density, or in other words, how much electricity it produces for every unit size.

Therefore, the panel’s actual density determines its cost, and the higher it is, of course, the more expensive the system will be.

The more effective ones should be your go-to because they serve you better and last longer.

#3 The Type of Roof

Every house comes with a unique type of roof; there are metallics, shingles, flats, and other unique ones. Did you also know that how your roof looks like also determines how much it will cost you to install panels?

Homebuilders understand that metallic roofs that come with protruding and standing seams are apparently the easiest to deal with,¹¹ and you are sure to pay less for the installation.⁷

#4 The Amount of Energy You Need

One of the most impressive aspects about solar systems is that they are specifically created to cater to all your energy needs.

Therefore, if your utility bill is a huge number, it will automatically mean that your setup will also be expensive because, in one way or another, it still has to meet your energy needs.

#5 The Cost of Linking To the Grid and the Distance Between the Two

When installing solar power, you will realize that you can either connect to the grid or go off-grid.

How much it will cost you for the interconnection usually depends on plenty of factors, from the size of the system, the amount of solar power already in use in your area, the distance between you and the closest interconnection point, and many more.

Solar Panels Cost: How Does Solar Panel Cost Calculator North Carolina Work?

The solar panel cost calculator is a lifesaver even for first-time panel owners. Not only is it convenient to use by working with only a few clicks, but it is also one of the simplest ways to get a better estimate of how much money you will be working with.

If you are still skeptical about the whole thing or are yet to ask for quotations from various solar companies, the cost calculator is the first place to start.

What exactly do you need? Accurate details about your home and your energy needs.

If there is anything else that the system needs, it will direct you accordingly, and feeding the correct information will lead to a more accurate answer that will be way easier to make use of.

Why Is the Cost To Install Solar Panels So High?

It is without a doubt that solar panel installation is one of the most expensive home improvement projects. Which leads us to the question on probably every prospective buyer’s mind, why are solar panels so expensive?

Trust that there is a very logical explanation for this. In fact, companies and governments cannot do anything about it, maybe just try to reduce it as much as they can.

For one, the cost of manufacturing the equipment is no joke.

Solar companies struggle in a bid to acquire the expensive silicon and lithium raw materials and deal single-handedly with the mining, transportation, processing, and everything else down until the final product is ready, but before that happens, they also need to purchase state-of-the-art machines to do the job, not to talk about paying highly-skilled staff.

As if that is not enough, there are also soft costs to deal with. It is obvious because you know that installation needs contractors that are experienced, well-trained,¹² and have the right certifications.

To top it all off, the companies are like any other typical business and have to make profits whilst paying bills and handling marketing costs, which explains the pricing of the panels.

Benefits of Solar Panels North Carolina

With about 213 sunny days in North Carolina, it is undoubtedly one of the best spots for solar power. You can expect a lot of sun in the state regardless of where you live because most cities actually enjoy plenty of sunshine.

For example, Charlotte has 214, Raleigh 217, Greensboro 216, and Wilmington 215, which are pretty great numbers.

Why don’t you take advantage of the sunny days and while you are at it, enjoy the following amazing benefits.

Lower Energy Bills

Say bye to utility bills and hello to thousands of dollars in savings, all thanks to changing your lifestyle. By going solar, experts state that you can save more than $15,000 in a period of 20 years, money that can be used to fund other projects.

This is if you pay in cash and in full, but imagine how much more you will save after making full use of North Carolina solar incentives.

Total Detachment From the Grid

Many would jump at the thought of never depending on the grid for power. You no longer have to suffer blackouts and other issues simply because you and many other people are waiting for power from the same place.

A battery is all that is standing between you and independence. With such an elaborate system, you can store excess power that you have generated all through the day and use it later on, say at night or when the weather is not that reliable.⁸

Which answers the question do solar panels work on cloudy days?

Increase in Home Value

If you were previously wondering, does solar increase home value, the answer is yes, and by as much as 4.1%. More home buyers have a newfound love for solar-powered houses, and yours would be a catch that people are actually willing to pay more for.

Therefore, you can easily tell that installing solar panels is an investment in its own right and a good one at that.

Eco-Consciousness

If you label yourself a lover of the planet that would do anything to protect the environment switching to solar power is a bold confirmation.

Solar power has way less carbon footprint in comparison to nonrenewable energy sources, making it cleaner and more eco-friendly.

Besides, it helps that the carbon footprint solar panels from manufacture until the end of service life is low, which cannot be said for fuel. Are you worried about what happens to the panels when they are decommissioned?

Don’t fret because there are solar panel recycling companies distributed all through the southeast, including in North Carolina, that handle them in the safest way possible to avoid pollution.

North Carolina Solar Incentives

It is beyond doubt that North Carolina could do much more when it comes to improving its legislation on Renewables Portfolio Standard to increase the number of available incentives.

But still, it doesn’t take away from the fact that buying solar is more affordable in the state, unlike in many regions, which also goes to show that the payback time for a system will significantly reduce.

Below are the available incentives that you can make use of while living in North Carolina.

Federal Solar Investment Tax Credit

Of course, the ITC is at the start of this list. It is also the first North Carolina solar incentive that residents mostly search and aim for.

Federal energy credits are the most lucrative solar rebates from the government, and you should also be thinking about it if you are planning on reducing the cost of your installation.

Although it is not specifically a North Carolinian program per se and applies to all the tax-paying citizens of the country, it is still one of the best. Let’s face it, there is no other program that would give you 30% off on your solar installation, from the equipment to the permitting and imagine how much you would save if you use it in combination with other local rebates.²

However, before you get all excited, remember that the ITC is not a tax refund. Instead, it is a deduction of 30% from your taxes out of the amount you used in installing your panels.

It should also be out there that you cannot just apply for it as a prospective buyer. You have to actively go out of your way, buy the panels, have them installed, then apply for the 30% tax relief of the total cost.

To take the ITC in North Carolina, complete IRS Form 5695 with your standard Form 1040.²⁰

North Carolina Net Metering

Have you ever thought about what exactly happens to the excess solar power that panels generate? Well, you, as an owner, have basically two options, connecting to the grid or going off-grid and harnessing the surplus in batteries for your own use.

While you can go for the latter, remember that it is much more expensive to install the batteries, not to talk about every other component of the system.

However, you can sign up for net metering, where you can kind of “sell” your excesses to the grid and, in return, have the utility company lower your electric bill. It is recommended if your system has a massive capacity and produces power by up to a megawatt or 1 000 watts.

Therefore, it helps a great deal if your system is the right size to be able to make more use of the program, and that is why it is crucial to do thorough research first. The aim is to reduce your monthly utility spending, which also goes a long way to reducing the payback period of your panels.

But before that, some homeowners signing up for net metering don’t always know that the surplus is usually credited to their next bill and that the balances can expire at the onset of summer billing.¹³ Therefore, you want to check that your system is not too overly-sized; otherwise, you will have too much in excess, whose credits will only expire, and you won’t utilize them.⁹

Property Tax Abatement

Another program from the North Carolinian government is the 100% tax exemption on all home solar systems. As long as your panels are actively in use in your home, you are exempted.

However, it doesn’t necessarily apply to passive setups like sunrooms or greenhouses.

On the other hand, the exemption stands at 80% for all non-residential buildings, that is, commercial and industrial settings.

This law has been in effect since 2008 and has been of great service to the people. So how exactly does it work?

Basically, you know that solar panels are home improvement projects, and as stated earlier, they help increase your home’s value. What happens when the house’s value increases?

The property tax goes up by law.

What this law does, is that it doesn’t see solar panels as standards to increase your taxes, even though it is clear that your house’s value has increased.

If your house goes from $250,000 to say, $270,000, you will still be taxed on the $250,000 value, not the $270 000; imagine how much money would have otherwise spent due to increased taxes.

Duke Energy Solar Rebate

It is quite interesting that Duke Energy runs its services in several states in the country but then offers solar rebates only in North Carolina. In so doing, it helps reduce the cost of panels in North Carolina for all users, whether residential or commercial, even for organizations (non-profits).

It is also another highly-sought after program, which explains the long waiting list on its website.

If you are patient enough to wait for your turn, it will all be worth it, and here is what the company offers. If you are a homeowner who has installed working solar panels, you can receive 40 cents for every watt you generate, and if you do the math, you may end up saving as much as $2,000 if you have a basic 5-kilowatt system.

Moving on to the commercial users, you can get 30 cents for every watt, and the rebate can go to a figure as large as $30,000. Lastly, and most lucrative rebate goes to non-profit customers whole can get 75 cents for each watt, which means that their rebates can go to a whopping $75,000.¹

It is self explanatory that you will have to patiently wait a while, but for now, you can go to the website of Duke Energy to see whether you are eligible and what are the application guidelines.

Piedmont Electric Membership Corporation Program(PEMC)

If you are a proud member of PEMC, the utility cooperative,¹⁴ you will be excited that you are eligible for renewable energy loans to help you finance your home’s solar installation. All members that have a serious need to switch to renewable energy have a great chance to apply and actually get it, and it is impressive how the loan covers a few costs here and there.

If you find yourself eligible for the loan, you can take away as much as $10,000 in terms of loans. The only guideline is that you have to repay it within about 7 years and at only 5% interest, which is still a great deal.

The loan caters to several aspects too. You can go for it if you are thinking of adding an electric pump, setting up an A/C unit, adding more panels, and buying solar-powered water heaters, just to name a few.

How Does the Federal Solar Tax Credit Work as a North Carolina Solar Incentive?

If this is your first time hearing about the federal solar tax credit and you are very interested in it,¹⁵ you should first know what it is all about.

It is understandable that it is one of the most highly sought-after programs, but it is also important to do your due diligence to avoid any inconveniences in the future.

Even before signing up for it, you should know what this means for your household. For one, the incentive is not particularly statewide; it is countrywide, available in all US states.

It is one of the most effective ways that has enabled more and more people to acquire solar panels, and it makes sense because who wants to pass up 30% off the cost of their panel installation?

One common mistake first-timers make is thinking that it is a cashback program. Trust that there is no way that you will receive a cheque in your account to offset your costs.

What happens is that you get the amount in terms of tax relief, meaning that you won’t have to pay for that amount the next time you pay your taxes.

Also, note that you will not receive the tax credit unless you have finished setting up the system. You have to prove that you went through with it and it is actually up and running, otherwise, there would be no point to it.

Unfortunately, you will have to find a way to finance the project, whether you pay upfront or use a solar loan.

Another rule is that you should be the true owner of the system; sorry if you have entered a solar lease or power purchase agreement. Which brings us to one important question, how does the solar tax credit work if I don’t owe taxes?

Due to the nature of the program and how it was designed, it is specifically for taxpayers. Therefore, if you don’t owe the government any money in the form of taxes, you are unfortunately locked out of the program.

In fact, you cannot even apply for it.

Is There an NC Solar Tax Credit?

Unfortunately, there are no statewide North Carolina incentives when it comes to solar power. Too bad there are no strong regulations to bring more North Carolinians on board with switching to renewable energy.

For now, the only tax credit available for use is the statewide ITC which works in all states, not specifically in North Carolina.

Other regions have the luxury of enjoying both the federal tax credit and state solar tax credit, which means that they can save a fortune on their purchases. Imagine being given 30% off by the nation and another 25% off by your state, it makes you want to make the switch immediately.

Sad that is not happening in North Carolina, and honestly, maybe not anytime soon.

It is not all bad news though. At least companies like Duke Energy are stepping up to the plate and offering their consumers cash rebates.

This way, the cost of solar panels in North Carolina significantly reduces, and you will take a very short time to pay back your system. At least you get to enjoy the 30%, net metering, and other local incentives.

How Do North Carolina Solar Incentives Reduce the Solar Panel Cost?

Solar incentives have a special way of making you feel like you made the right choice by switching to renewable energy. Those still using grid electricity can only dream of such incredible tax credits, net metering programs, and cash rebates, things that you can easily apply for and actually receive just for making the world a cleaner place.

Each program has specific advantages that help reduce the cost of solar panels in North Carolina. The ITC is pretty self-explanatory because it reduces 30% of the cost and gives it to you in terms of tax credit.

You can keep the money you are obligated to pay and assume that it is payback for using solar systems.

Secondly, consider net metering. Instead of the hefty monthly bills, you get “paid” for contributing your excess power to the grid in terms of credits, which is also a great deal. You get to reduce your energy bills while at the same time putting the surplus energy you generate to good use.⁶

Now take a look at Duke Energy’s rebate program that actually pays you according to the amount of energy you produce.

Not forgetting the solar loans and financing options from PEMC and the property tax exemption that stops your panels from increasing your taxes.¹⁶ All these programs are helpful in their own way, and it is up to you to find out how you can make full use of them.

If you play your cards right, you will be shocked by just how little time it takes for your solar panels to pay for themselves and how much you will have saved while at it.

How To Find the Right Solar Panels for Home in North Carolina

You will realize that installing solar panels in your home is one of the biggest and most expensive home improvements you will ever do. It has to be perfect because it is something that is supposed to last you more than two decades; everything must go right.

What if you are a first-timer and find everything overwhelming, where do you start? How do you find the right panels?

#1 Price

Of course, this is the first on the list. Panels have built a reputation for being very expensive, but that is not always the case, especially when solar incentives come into the picture.

Generally, the price will determine whether the system is worth it for your home or not.

If it will pay itself off in a few years, then you can always take the shot, but if not, you will have to give it more thought. Various companies offer their services at different rates, and it is entirely up to you to determine which one is more affordable and go for it.

#2 Capacity

How much power your system can generate is another important question to ask. Any installer will ask you how much your household has been using over the last few years and use that information to find out exactly how many panels will do.

If you have a simple household with a few people and won’t use as much electricity, you can always go for a similarly simple setup that serves all your needs. It is the opposite when we are talking about massive commercial properties that will need more massive and more expensive systems, otherwise, the setup will not fully serve them.

#3 Durability

Like any other product out there, you want to go for durable solar panels. These are equipment that are going to stay on your roof for as long as 20 years, sometimes more, and you want them to withstand all the harsh weather and any other eventualities.

Always insist on buying panels from trusted sources and check their warranty.

Factors To Consider Before You Install Solar Panels in Your Home in North Carolina

You are obviously excited about not having to pay for electricity from the grid. But before you go hurriedly buying solar panels, it is crucial to get some facts straight.

You want to make a well-calculated decision that will be worth the cost.

Do You Rent or Own Your Home?

If you are a homeowner, you are in luck because you are at liberty to do basically whatever you want, including installing solar panels. However, the case is slightly different if you are a renter because you cannot undertake such a massive project without your landlord’s approval or knowledge at least.¹⁷

The best you can do is to get on board community solar programs in the area, which are not as complicated.³

What Is the Condition of Your Roof?

You cannot ignore the fact that the state of your roof is a key player when it comes to panel installation.

That is unless you want to go for ground mounting, which is a whole new case of extra equipment and additional costs, not to mention the eco harm it may cause.

You may have to repair your roof before the project starts, a project that also needs money; otherwise, the panels will not stand on flimsy or damaged roofing systems.

Where Do You Live?

It is great that North Carolinians enjoy plenty of sunny days and that shouldn’t be a problem.

However, imagine a case where there are tall buildings or trees around that block the sun, there is no way that your panels will work at their optimal level, and you may have to do something about that first.

Does Your Neighborhood Have Strict HOA Rules?

It will be unfortunate if there are HOA guidelines in your area preventing you from installing your solar panels. It would help if you maybe consult first before commencing the project to avoid any complications.

How To Pay for Solar Panels in North Carolina

You should know how to go about paying for the solar panels because remember that the ITC expects that you personally fully fund the project before claiming it. So how can you go about it, that is besides cash payment, which is the most obvious way to go?

You simply take out your savings and pay. But what if you don’t have all the money in full?

You don’t have to worry because there are solar loans available for customers. All you have to do is to find one with the most favorable terms and get started.

Alternatively, if you are reserved about loans and don’t want to deal with interest rates, you can also go for solar leases, which are quite convenient.

You don’t have to pay for the installation since the company handles everything for you. All the companies expect from you is that you pay a small fee every month as you do with normal utility bills.

However, understand that since leases mean that you don’t own the panels, you will have to be cut out from the federal tax credit.

Free Solar Panels NC and Community Solar for Low-Income Families

The North Carolinian government is working relentlessly to make solar power more accessible. This is thanks to its recommendations for affordable solar power.

Although this does not provide free solar panels for low-income families, it is still a thoughtful incentive. The state is to fund the projects for those who prove to be deserving and some from low or moderate-income homes to give them access to community solar programs.¹⁸

It is not the conventional method where every home owns solar panels because here, the households don’t have to pay the hefty installation cost or even have to set up the panels on their roofs.

The beneficiaries will share the power from a solar farm instead of bearing the individual costs.

This program will apply not only to homeowners but also renters and will engage the local utility companies.

How To Get Affordable Solar Panels in North Carolina

If you have been wondering how to get solar panels for free, hate to break it to you, but they don’t exist. One thing, however, comes close, the Power Purchase Agreements.

These are also called solar leasing programs, where you enter a contract with a solar company, letting it handle all the installation for you, but in exchange, you have to pay a fee at the end of the month.

It is more or less like turning the company into your utility provider. The good news is that you will end up paying a fixed rate that is usually lower than your grid energy costs, and some may find this quite affordable and would opt for it instead of ownership.

Solar loans also work for many users, and the best part is that in comparison to leasing, you own the system and can therefore receive North Carolina solar incentives.

What Are the Best North Carolina Solar Incentives?

Each and every solar incentive in North Carolina has its own ups and downsides. The ITC from the national government seems to be the most highly sought after, given that it offers the most amount of money.

However, it is not to say that the other incentives like net metering and Dule energy programs are not valuable; they are also very effective in helping reduce the solar’s payback period.

How To Choose the Best North Carolina Solar Company

So many solar panel companies have set bases in North Carolina, which is expected given that it is in the top five states of the most lucrative solar markets.

The presence of all those companies can be overwhelming and you may not know where exactly to start when narrowing it all down to a single one.

You can never go wrong when going for a reputable firm. You want the most experienced person to handle the job for you and, preferably, want one that you have been referred to.

At least you will be sure that the service will be worth the cost. With an impeccable reputation, at least you will be certain that the company has links to NABCEP, SEIA, and other certifications.

But still, if you have no one to refer you to one company, you can always check reviews online to have a picture of what to expect. The company’s products also tend to speak for themselves for instance, if you see that the panels have 25-year warranties, at least you will know that they are some of the best quality.

Is the Cost of Solar Panels in North Carolina Worth It?

Whether solar panels are worth it for you is usually a personal consideration because there are several factors to put into consideration. As long as the energy payback takes a short time and the time it takes to pay off itself is not longer than 10 years,¹⁹ your panels are of high quality and can survive past the 20-year mark, and you will save a lot of money in the process, take it as one of the best investments you can ever make.

Luckily, solar installation has often proven worth every single penny you put into it. You may not see the effort immediately but trust that it will all make sense a few years down the line.⁴

You will no longer be worried about the ever-rising utility bills and will comfortably enjoy the power you generate for free, from your roof, using nothing else but solar power.

What Is the Cost of Solar Panels in North Carolina?

The cost of solar panels in North Carolina is slightly lower than that of the national average. It is $2.54 for every watt, against the country’s $2.66.

In general, you can expect to part with anything from $11,340 – $15,350, which is quite reasonable considering that it is more expensive in certain other areas.

You can never go wrong with installing solar power in North Carolina, or any other state for that matter. Forget about the upfront cost and think about how much money you will be saving all through the life of your panels, which can be as much as 25 years.

Imagine being grid-free for all those years while others grapple with the fact that electricity costs keep rising.

Besides, you don’t have to bear the burden of high costs all on your own. The government steps in to help you shave off a whole 30%.

There are also net metering programs, cashback from some of the largest utility companies, and solar loans to help with financing.

This only goes to prove that the North Carolina solar incentives have been or really great help to the residents to help lower the cost of solar panels in North Carolina, and you should start thinking about taking advantage of them before the guidelines change.

Frequently Asked Question About North Carolina Solar Incentives