Solar Panels in North Carolina (NC)
Last updated: February 24, 2026
North Carolina homeowners pay an average of $0.13/kWh for electricity — below the national average of $0.16/kWh. With 4.7 peak sun hours per day and state-level incentives, an 8 kW solar system can pay for itself in about 15.9 years, then generate free electricity for 15-20+ more years.
Federal Residential Solar Tax Credit Repealed
The 30% residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit. Commercial projects retain the 30% ITC under Section 48/48E. North Carolina state incentives remain available.
Electricity Rate
$0.13/kWh
Below national avg ($0.16)
Sun Hours/Day
4.7 hrs
Good Solar Irradiance
8 kW System Cost
$24,000
$3.00/watt installed
Federal Residential ITC
Repealed
Section 25D (early 2026)
Annual Savings
$1,508
11,600 kWh/year
Payback Period
15.9 yrs
then free electricity for 15-20+ yrs
Solar Cost Calculator for North Carolina
Here's what an 8 kW system costs in North Carolina and how savings accumulate over time (estimated 2026 data):
| Metric | Value |
|---|---|
| System cost (8 kW) | $24,000 |
| Federal Residential ITC (Section 25D) | Repealed |
| Net cost (before state incentives) | $24,000 |
| Annual production | 11,600 kWh |
| Electricity rate | $0.13/kWh |
| Annual savings | $1,508/yr |
| Payback period | 15.9 years |
| 10-year savings | $15,080 |
| 25-year total savings | $37,700 |
Estimated 2026 data based on North Carolina average electricity rates and solar irradiance. Actual savings vary by usage, utility, and system configuration. Does not include state incentives or electricity rate increases (historically 2-3%/year), which improve returns further. The federal residential ITC (Section 25D) was repealed in early 2026.
North Carolina Climate & Solar Performance
Climate Zone: Humid Subtropical
North Carolina offers a favorable climate for solar with warm summers, mild winters, and 4.3-5.0 peak sun hours/day depending on location. The western mountains see less sun but cooler temperatures (boosting efficiency), while the Piedmont and Coastal Plain have more sun exposure. Hurricane risk along the coast (Outer Banks through Wilmington) requires robust installations. The state is the #2 solar market by installed capacity, driven by favorable policies and good solar resource.
Key Climate Factors for Solar in North Carolina
- ✓ 4.3-5.0 peak sun hours/day (varies by region)
- ✓ #2 US state by installed solar capacity
- ✓ Warm summers but not extreme heat (lower temp coefficient impact)
- ✓ Hurricane risk along the coast requires wind-rated installations
- ✓ Mild winters with minimal snow impact
- ✓ Growing solar industry means competitive installer pricing
Net Metering in North Carolina
Full Retail Net Metering (Utility-Dependent)
North Carolina's net metering policies vary by utility. Duke Energy (the dominant utility) offers net metering at the full retail rate for residential systems up to 1 MW. Credits roll over monthly and are trued up annually. Some smaller co-ops and municipal utilities have different policies. HB 589 (2017) established the framework for current net metering and community solar programs.
Export rate: Full retail rate (~$0.12/kWh) for Duke Energy customers
Solar Incentives in North Carolina
Federal Investment Tax Credit (ITC)
Residential credit repealed (Section 25D)The residential solar tax credit (Section 25D) was repealed in early 2026. North Carolina's property tax exemption (80%), Duke Energy rebates, and net metering remain available. Commercial projects retain the 30% ITC.
Duke Energy Rebate Programs
Varies by program yearDuke Energy Carolinas and Duke Energy Progress periodically offer solar rebate programs for residential customers. Check current availability as programs open and close based on budget allocation.
Property Tax Exemption
80% exemption on added valueNorth Carolina exempts 80% of the appraised value of solar energy systems from property taxes, significantly reducing the tax impact of your installation.
NC GreenPower
Production incentive paymentsNC GreenPower is a voluntary program that purchases renewable energy credits from small solar installations, providing additional income for solar homeowners.
Top 3 Recommended Solar Panels for North Carolina
North Carolina's 4.7 peak sun hours/day provides good solar potential. These panels deliver the best performance:
Why for North Carolina: JinkoSolar's 22.8% efficient TOPCon at 615W offers the best value for NC's moderate electricity rates. High wattage reduces panel count and labor costs. Strong wind and hail ratings for coastal and Piedmont areas.
Why for North Carolina: Trina's flagship TOPCon at 22.8% efficiency. Excellent all-around performer for NC's humid subtropical climate. Competitive pricing makes it a strong value choice for maximizing ROI.
Why for North Carolina: LONGi's 23.0% HPBC panel with 620W. Premium efficiency without premium pricing. Well-suited for NC's climate with good temperature performance and low degradation.
Top 3 Recommended Batteries for North Carolina
Pairing solar with battery storage provides backup power during outages and can optimize savings with time-of-use rates. With North Carolina's full retail net metering, a battery is optional but valuable for backup:
| Battery | Capacity | Power | Chemistry | Warranty |
|---|---|---|---|---|
| HomeGrid Stack'd Series 38.4kWh | 38.4 kWh | 34.4 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| HomeGrid Stack'd Series 28.8kWh | 28.8 kWh | 25.8 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| BYD Battery-Box Premium HVM 22.1 | 22.08 kWh | 22.08 kW | LFP (Lithium Iron Phosphate) | 10 yr |
Frequently Asked Questions
How much do solar panels cost in North Carolina in 2026?
The average cost of an 8 kW solar system in North Carolina is approximately $24,000 ($3.00/watt installed). Note: The federal residential solar tax credit (Section 25D) was repealed in early 2026, so the full system cost applies unless state incentives are available. State-level incentives may reduce your out-of-pocket cost. Get 3-5 quotes from local installers for accurate pricing.
Is the federal solar tax credit available in North Carolina?
The federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E. North Carolina still offers state-level incentives that can reduce your solar costs. Consult a tax professional for the latest guidance.
Why is North Carolina the #2 state for solar installations?
North Carolina ranks #2 in installed solar capacity thanks to favorable policies (full retail net metering for systems up to 1 MW through Duke Energy), competitive installer pricing from a mature market, and good solar irradiance (4.7 sun hours/day). The state's 80% property tax exemption for solar and declining equipment costs continue to drive adoption, even without the federal residential tax credit.
How much can I save with solar in North Carolina?
An 8 kW solar system in North Carolina produces approximately 11,600 kWh/year, saving about $1,508 annually at the average electricity rate of $0.13/kWh. The estimated payback period is 15.9 years. Over 25 years, total savings can reach $37,700.
Does North Carolina have net metering?
Full Retail Net Metering (Utility-Dependent): North Carolina's net metering policies vary by utility. Duke Energy (the dominant utility) offers net metering at the full retail rate for residential systems up to 1 MW. Credits roll over monthly and are trued up annually. Some smaller co-ops and municipal utilities have different policies. HB 589 (2017) established the framework for current net metering and community solar programs.
What is the best solar panel for North Carolina?
Our top pick for North Carolina is the JinkoSolar Tiger Neo 615W (22.8% efficiency, -0.28%/°C temp coefficient). JinkoSolar's 22.8% efficient TOPCon at 615W offers the best value for NC's moderate electricity rates. High wattage reduces panel count and labor costs. Strong wind and hail ratings for coastal and Piedmont areas.
What is the payback period for solar in North Carolina?
The estimated payback period for an 8 kW solar system in North Carolina is 15.9 years. This is calculated as: system cost ($24,000) divided by annual savings ($1,508/year). After payback, solar generates essentially free electricity for 15-20+ more years. State incentives may shorten this further.
Do I need a battery for solar in North Carolina?
A battery is not required for grid-tied solar in North Carolina, but it provides backup power during outages and can increase savings with time-of-use rate optimization. North Carolina's incentive programs may include battery storage rebates.
Does North Carolina have solar incentives?
Yes, North Carolina offers state-level solar incentives: Duke Energy Rebate Programs (Varies by program year), Property Tax Exemption (80% exemption on added value), NC GreenPower (Production incentive payments). Note that the federal residential solar tax credit (Section 25D) was repealed in early 2026. Check the DSIRE database for the latest program details.
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