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Solar Panels in North Carolina: Costs, Net Metering, Incentives and What to Buy

Rooftop solar economics in North Carolina changed in October 2023, when Duke Energy moved new residential customers to a time-of-use net metering rider. Electricity prices have also risen quickly. If you are a homeowner, farm, small business or installer weighing solar in North Carolina, this guide explains prices, net metering, the incentives that still exist and how hurricanes and humidity affect what you should buy.

Solar in North Carolina at a glance

Electricity prices and utilities

At 15.16 cents per kWh in July 2026, North Carolina residential power was still below the U.S. average of 18.31 cents, but it rose faster than the national average over the year, according to the EIA. Businesses paid 10.73 cents. Rising rates improve the value of every kWh you produce and use yourself.

Most North Carolinians are served by Duke Energy Carolinas (largely the west and Piedmont) or Duke Energy Progress (largely the east and the Raleigh area). Dominion Energy North Carolina serves the northeast. These investor-owned utilities are regulated by the North Carolina Utilities Commission (NCUC). Electric co-ops and city utilities set their own solar terms, so check your utility’s tariff first.

Net metering and selling power back

In March 2023, the NCUC approved revised net metering tariffs for Duke Energy under a 2017 state law that requires net metering customers to pay their full fixed cost of service. The new rules took effect on October 1, 2023, and the North Carolina Court of Appeals upheld them in September 2024 (WFAE).

• Residential Solar Choice is the standard rider for new Duke Energy residential solar customers. It must be paired with a time-of-use rate, so power used in the late-afternoon and evening peak costs more.
• Exports are worth less than retail. Credits for exported energy are based on what Duke pays for wholesale generation, not on the retail price.
• Existing customers who enrolled before the change kept their earlier terms.

What this means for equipment: a system sized to cover daytime use, perhaps with west-facing panels or a battery to cover the evening peak, usually gets more value under a time-of-use rate than a system sized to export as much as possible. Duke has also offered solar-plus-battery incentives in North Carolina (PowerPair), with limited capacity; ask Duke Energy whether enrollment is still open before you count on it. The Avolta guide to batteries and backup power covers sizing.

Incentives in North Carolina

• Federal homeowner credit ended. The IRS states that the 30% Residential Clean Energy Credit is not available for any property placed in service after December 31, 2025. Any quote still showing a “26%” federal credit for a new home system is wrong.
• Business credits are narrowing. Under the 2025 federal tax law, commercial solar facilities that begin construction after July 4, 2026 must be placed in service by the end of 2027 to qualify for the Section 48E or 45Y credits (IRS Notice 2025-42). Guidance on beginning of construction has been challenged in court, so check with a tax professional.
• No state tax credit. North Carolina’s 35% renewable energy tax credit expired for property placed in service on or after January 1, 2016. Bills to revive it, such as H 1123 in 2022, did not restore it.
• Property tax exclusion. Under G.S. 105-275(45), 80% of the appraised value of a solar energy electric system is excluded from property tax. House Bill 1213, approved by a House committee on June 30, 2026, would end the exclusion for systems placed in service on or after July 1, 2027; check its status before you plan around it.

Climate and what it means for your equipment

NOAA counted 121 billion-dollar weather disasters in North Carolina from 1980 to 2024, including 31 tropical cyclones, 54 severe storms and 16 winter storms. Tropical cyclones accounted for 83.5% of the total cost (NOAA NCEI). Hurricane Helene in September 2024 showed that the risk reaches the mountains as well as the coast (National Hurricane Center report).

• Wind. On the coast and the Outer Banks, choose racking, roof attachments and module clamps with engineering for your site’s design wind speed and exposure category, and check the module’s certified mechanical load rating.
• Humidity and salt air. Hot, humid summers are hard on connectors and frames. Near the coast, look for modules tested for salt mist corrosion (IEC 61701) and use stainless or coated hardware.
• Heat. A panel rated −0.30%/°C running 35 °C above the 25 °C test condition produces about 10.5% less than its rating, so compare temperature coefficients on datasheets.
• Snow and ice in the mountains. Winter storms appear on NOAA’s list 16 times. In the Blue Ridge, check the module’s snow load rating and leave space for snow to slide off.
• Outages. A standard grid-tied system shuts down during an outage. Backup requires a battery or a hybrid inverter designed to island safely.

What to buy in North Carolina

• Modules: UL 61730 listing, a strong mechanical load rating for coastal sites and a low temperature coefficient.
• Inverters and batteries: under a time-of-use rate, a hybrid inverter with storage can shift solar energy into the evening peak.
• Racking: wind-rated, with stainless hardware near salt water.
• Quantity: farms, larger homes and installers can cut cost per watt by buying wholesale solar panels by the pallet; see the Avolta pallet guide. Businesses can compare commercial solar panels.

For equipment and regional details, browse the solar panels range and A1 SolarStore’s North Carolina solar guide. Before you sign an installer’s offer, read what a home solar proposal should explain before you sign, and make sure the savings estimate uses the Residential Solar Choice time-of-use rates, not the old retail net metering.

Permits and interconnection

• Permits: most systems need building and electrical permits from your city or county under the North Carolina State Building Code.
• Interconnection: apply to Duke Energy, Dominion Energy or your co-op or city utility before the system operates, and wait for permission to operate. Your net metering rider is set up as part of this process.
• HOAs: under G.S. 22B-20, covenants may regulate the location or screening of solar collectors but may not prevent their reasonable use on a detached single-family home.
• Property tax: ask your county assessor how the 80% exclusion is applied to your system.

Contact the North Carolina office

Frequently Asked Questions