Solar Panels in North Carolina 2025: Cost and Incentives
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
The average price for a home solar system in North Carolina before incentives was $30,340 in January 2025, according to data from EnergySage, a solar and home energy product comparison marketplace. The cost drops to an average of $21,238 after incentives.
Solar costs in North Carolina at-a-glance
North Carolina | U.S. | |
|---|---|---|
Typical cost of home solar system before federal solar tax credit | $30,340. | $29,360. |
Typical cost of home solar system after federal solar tax credit | $21,238. | $20,552. |
Median cost per watt | $2.30. | $2.56. |
Source: EnergySage, a solar and home energy product comparison marketplace. Data is from January 31, 2025. | ||
According to EnergySage, the average home solar power system in North Carolina in January 2025 replaced 96% of households’ monthly electricity consumption in the state. On average it takes North Carolina homeowners 10 years to break even on the cost of installing solar energy systems.
On average, the federal solar tax credit reduced the $30,340 upfront cost of a North Carolina home solar system down to $21,238. Some significant local utility incentives can further lower the cost.
How net metering works in North Carolina
There are several ways North Carolina’s net metering can affect homeowners with solar systems. How these factors apply to your electricity bill depends on which of the three available rates you pay, which are compared in the next section.
It’s important to note that not all utility companies require net metering. For example, some electric cooperatives have optional net metering plans and have different policies for crediting customers’ excess solar energy. The majority of information in this article pertains to North Carolina’s investor-owned utility companies, Duke Energy and Dominion Energy.
Minimum monthly bill
Homeowners in North Carolina with solar energy systems now have minimum monthly electricity bills regardless of how much solar energy they send to the power grid. A minimum monthly bill includes fixed costs that utility companies want to recoup for providing net metering services, as well as nonbypassable charges for items like cyber security and storm repair costs.
Excess energy credits
Utility companies that buy excess solar energy will credit homeowners for the value of the power that’s sent to the grid and allow homeowners to roll over those credits to the next month’s bill. However, excess energy credits expire after 12 months; the expiration date depends on the utility company a homeowner uses.
Because solar customers in North Carolina have a monthly minimum electricity bill, credits for excess solar energy won’t apply to the charges that make up the minimum bill. In other words, even if you send enough energy back to the grid to equal the charges of your next monthly bill, you will still have to pay the minimum amount. So plan on paying a monthly power bill even if you install solar panels on your home.
Time-of-use rates (Residential Solar Choice rate only)
Time-of-use rates allow utility companies to charge customers more for electricity during peak times when there is a higher demand and less when there is less demand. Each utility company determines which hours qualify as peak and off-peak often vary by season, and how many hours a day are billed at the peak rate . Depending on if you send excess solar energy at a peak or off-peak time, your utility company will pay you more or less than the standard credit rate.
Net metering rates in North Carolina
In 2023, the State of North Carolina Utilities Commission changed the state’s net metering program and made it less cost-effective for solar customers to send their excess solar-generated electricity back to the grid.
The most recent version of net metering includes three billing rates, and which rate a homeowner pays depends on when they sign up with a utility company. Customers who sign up:
After October 1, 2023 can choose between the Net Metering Bridge (if a spot is available) rate or the Residential Solar Choice rate.
Before October 1, 2023 will pay the Legacy Net Metering rate until October 1, 2027. After that date, they’ll transition to the Net Metering Bridge rate for 15 years and then the Residential Solar Choice rate after that.
Homeowners who stay with the Legacy Net Metering rate will receive more for their excess solar energy than those who have to switch to the newer Net Metering Bridge and Residential Solar Choice rates. However, because the Legacy Net Metering and Net Metering Bridge rates will eventually expire, all customers with solar energy systems will eventually use the Residential Solar Choice rate.
There are several differences between North Carolina’s three net metering rates. These include the rate customers pay, how their charges are calculated and how much their excess solar energy is worth. Here’s a comparative summary of the major differences that homeowners will see depending on which rate they use.
Legacy Net Metering rate | Net Metering Bridge rate | Residential Solar Choice rate |
|---|---|---|
Available to customers who signed up before October 1, 2023. | Available to customers who signed up after October 1, 2023. | |
Expires on September 30, 2027. | Expires 15 years after signing up. | Doesn't expire. |
Doesn't have a limit for the number of customers. | Is limited to a certain number of customers each year. | Doesn't have a limit for the number of customers. |
Doesn't require a minimum monthly power bill. | Requires minimum monthly power bill. | |
Doesn't charge nonbypassable charges. | Charges nonbypassable charges. | |
Doesn't charge a grid access fee. | Doesn't charge a grid access fee. | Charges a grid access fee for some systems. |
Doesn't have a time-of-use rate schedule. | Doesn't have a time-of-use rate schedule. | Has a time-of-use rate schedule. |
Credits excess solar energy at the higher retail rate. | Credits excess solar energy at the lower avoided cost rate. | |
Solar tax exemptions in North Carolina
North Carolina does not include personal solar energy systems installed on residential properties when calculating property taxes. This means installing a solar system on your roof won’t increase the taxable value of your property if you aren’t using the system for profit.
North Carolina does not give homeowners a break on sales tax when purchasing solar energy systems, so you’ll need to plan to pay sales tax when you purchase a system.
North Carolina solar rebate
Duke Energy provides its customers with a rebate of up to $9,000 for qualifying residential systems that include solar panels and solar batteries for storage, though most residents are unlikely to qualify for the full amount. The program has limited capacity, so not all customers will receive the rebate.
Solar battery programs in North Carolina
Duke Energy offers a program through which customers can give the company access to the solar energy stored in their personal batteries. Duke Energy Carolinas calls the program Power Manager, while Duke Energy Progress calls it EnergyWise Home.
The program is an agreement between the utility company and homeowners to allow the company to pull stored power from a customer’s solar battery between 30 and 36 times a year, allowing the customer to refuse the access up to four times a year. Participating customers receive a monthly credit on their electricity bill; total credits depend on the customer’s system.
Energy storage in North Carolina
Home solar batteries cost an average of $10,499 in North Carolina after the federal tax credit, according to EnergySage. That’s about average for the states that EnergySage surveyed.
Utility incentives like Duke Energy’s PowerPair program can significantly lower that cost. PowerPair offers customers who install solar combined with energy storage a rebate of up to $3,600 for solar panels and $5,400 for batteries, for a total of $9,000. Customers can receive additional monthly compensation from Duke if they allow the utility to discharge energy from their battery at peak demand times.
Can I get financing for a solar panel system?
In addition to tax incentives and rebates, there are options available. Many solar installers offer financing, but you may also be able to finance your solar investment through a home equity loan or home equity line of credit (HELOC). These options may have lower interest rates than financing with an installer, future opportunities for refinancing and possible tax benefits.
Home equity loans and HELOCs are ways to borrow against the value of your home, converting equity into cash. With a home equity loan, you receive a lump-sum payment and then pay it back at a fixed interest rate over an agreed period of time, typically from five to 30 years. HELOCs are more akin to a credit card, something you use as needed. You’ll usually have 10 years to draw from the line of credit, during which time you only have to pay interest, and after that you pay both the principal and interest. HELOC interest rates typically are variable, meaning your monthly payment could rise or fall over time. And with each of these options, you're using your home as collateral.
 Quicken Loans: NMLS#3030 | ||
|---|---|---|
Max LTV85% | Max LTV90% | Max LTV90% |
Min. Credit Score640 | Min. Credit Score640 | Min. Credit Score680 |
National / regionalNational | National / regionalNational | National / regionalNational |
Another option is a solar loan. Many banks, credit unions and online lenders offer these to fund solar panels and installation, with amounts typically from $1,000 to $100,000, and annual percentage rates ranging from 6% to 36%. They function like a personal loan: you receive a lump sum and repay it in equal monthly installments over a set period, typically two to seven years. And unlike with home equity financing, there is no collateral required for a solar loan. This means your home or solar panels aren’t at risk if you miss payments, but you may have to pay late fees.
So, yes, you likely can get financing. If you go this route, compare interest rates, terms and fees with any financing package that a solar provider may offer you to ensure you get the best deal.
