North Carolina solar incentives 2026: every program explained
North Carolina's solar incentive stack in 2026 — honest numbers, no expired federal credit, and the real picture on No income credit; strong net metering + 80% property tax exemption.
North Carolina is a state where the financial case for solar is built on net metering and tax exemptions rather than income tax credits. The state’s former 35% income tax credit expired in 2015, and no replacement has been enacted. The federal credit expired at the end of 2025. What NC has built instead is a clean, functional incentive structure that has made it a top-5 solar state by installed capacity.
Full retail-rate net metering
Duke Energy Carolinas (western NC: Charlotte, Asheville, Gastonia) and Duke Energy Progress (eastern NC: Raleigh, Durham, Fayetteville, Wilmington, Greenville) both offer full retail-rate net metering for residential solar. Dominion Energy NC serves northeastern NC. NC’s net metering law is one of the strongest in the Southeast, requiring utilities to credit excess solar at the retail rate. This full retail-rate policy is the core financial driver of NC’s solar success. Full NC net metering guide.
80% property tax exemption
North Carolina exempts 80% of the added home value from a residential solar installation from property taxes. Your home’s value increases from solar; 80% of that increase is sheltered from your annual property tax bill. This is a meaningful ongoing benefit, particularly in high-property-value markets like Charlotte, Raleigh, and Asheville.
Sales tax reduction on solar equipment
North Carolina charges a reduced sales tax rate on solar energy equipment. The specifics vary by component; confirm the current applicable rate with your installer at the time of purchase.
No state income credit
NC’s 35% state solar income tax credit expired in 2015 and has not been renewed. No state income credit applies to 2026 installations. The federal credit also expired at the end of 2025.