North Carolina Solar Incentives, Cost & Payback (2026)
Written by Aditya Patil · Last updated 2026-09-24
Transitioning to solar in North Carolina involves navigating a landscape of changing utility policies. With Duke Energy rolling back 1:1 net metering, investing in a home battery alongside your solar panels has become an increasingly popular way to maximize your savings.
$166
Avg. monthly bill
14.74¢/kWh
Avg. rate
N/A
Real installed cost
LBNL Tracking the Sun
N/A
Est. payback
Depends on battery & utility
Cost of solar in North Carolina
Currently, detailed statewide average cost per watt figures from the LBNL Tracking the Sun report are unavailable for North Carolina. However, homeowners in the state typically use around 13,502 kWh/year of electricity. To cover this usage, you would roughly need a 9.59 kW solar system.
Because Duke Energy has transitioned away from favorable 1:1 net metering, a "solar-only" system will generally yield a longer payback period compared to older tariffs, as excess energy sent to the grid during the day is credited at a lower avoided-cost rate. Adding a battery helps shift that solar energy for evening use.
Incentives & rebates
North Carolina's most prominent current incentive is the PowerPair program for Duke Energy customers, which encourages pairing solar panels with battery storage. Note that the state's renewable energy tax credit expired in 2016.
| Program | Amount | Status |
|---|---|---|
| North Carolina Property Tax Abatement for Solar Electric Systems | 80% of the appraised value of a solar energy electric system is excluded from local property tax assessment; the property owner is taxed as if the solar equipment were worth only 20% of its appraised value. | open |
| North Carolina Renewable Energy Tax Credit (expired) | Formerly up to 35% of the cost of qualifying renewable energy equipment before the program was phased out; no current value. | closed |
| Duke Energy PowerPair — Duke Energy Carolinas territory | $0.36 per watt-AC of solar (system up to 10 kW-AC, max $3,600) plus $400 per kWh of battery capacity (up to 13.5 kWh, max $5,400); combined maximum incentive of $9,000 for a new solar+battery system installed together. | open |
| Duke Energy PowerPair — Duke Energy Progress territory | $0.36 per watt-AC of solar (system up to 10 kW-AC, max $3,600) plus $400 per kWh of battery capacity (up to 13.5 kWh, max $5,400); combined maximum incentive of $9,000 for a new solar+battery system installed together. | waitlist |
| Duke Energy NC Solar Rebate Program (HB589, closed) | Was $0.40/watt for residential systems up to 10 kW, $0.30/watt for commercial systems up to 100 kW (max $30,000), and $0.75/watt for nonprofit systems (max $75,000); rebate size was reduced and allocation moved to a lottery in 2021. | closed |
Net metering / export rules
Net metering in North Carolina heavily depends on your utility. For most of the state served by Duke Energy, the legacy 1:1 retail-rate net metering program (Rider NM) was closed to new applicants in late 2023.
New Duke Energy customers must now choose between two riders: Rider RSC (Residential Solar Choice), which enforces time-of-use rates and critical peak pricing, and Rider NMB (Net Metering Bridge), which allows avoiding the mandatory time-of-use requirements but will close to new applicants by the end of 2026. Under both current riders, surplus solar energy exported to the grid is credited at a "Net Excess Energy Credit" rate based on avoided costs, significantly below retail electricity prices.
Electric cooperatives and municipal utilities manage their own policies, often compensating exports at an avoided-cost rate (roughly 3-4 cents/kWh).
| Policy Type | Varies by utility (Duke Energy uses Riders; cooperatives use net billing) |
| Duke Energy Legacy Net Metering | Closed to new applicants on Sept 30, 2023 |
| Current Duke Energy Options | Rider RSC (mandatory TOU) and Rider NMB (closes Dec 31, 2026) |
| Export Rate (Duke) | Tied to Avoided Cost (Net Excess Energy Credit), well below retail |
| Cooperatives/Municipals | Mostly net billing at avoided-cost (~3-4¢/kWh), with some exceptions like Blue Ridge EMC |
Under Rider RSC and Rider NMB, monthly excess solar exported to Duke Energy is credited at the Net Excess Energy Credit (NEEC) rate, which is tied to Duke's avoided cost of generation and is well below the ~13-15.5 cents/kWh residential retail rate; the exact NEEC value is set in Duke's rate filings and changes periodically. Most NC electric cooperatives compensate exports at an avoided-cost rate of roughly 3-4 cents/kWh; Blue Ridge EMC is a documented exception offering a full retail 1:1 net metering option as an alternative to net billing.
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Duke Energy Carolinas, LLC | 13.94¢/kWh | 1,919,372 |
| Duke Energy Progress - (NC) | 15.54¢/kWh | 1,356,079 |
| EnergyUnited Elec Member Corp | 11.54¢/kWh | 121,995 |
Residential rate and customer counts are from EIA-861.
Batteries & VPP programs
Given the reduction in export credit rates for solar energy, home batteries are increasingly beneficial in North Carolina. Duke Energy supports this through dedicated programs that lower the upfront cost and pay you for helping the grid.
Duke Energy PowerPair (solar + battery combined rebate)
NC's main current residential battery incentive: an NCUC-approved pilot (final order Jan 12, 2024) paying up to $9,000 for a new solar-plus-battery system, split between a $0.36/watt-AC solar rebate (max $3,600) and a $400/kWh battery rebate (max $5,400). Available to both Duke Energy Carolinas and Duke Energy Progress NC customers, but capacity is allocated separately by territory and is limited/first-come-first-served; DEP's allocation has reportedly reached capacity with a closed waitlist, while DEC has had some capacity remaining as of September 2026. See the incentives array for territory-specific records.
Power Manager / EnergyWise Home Battery Control
Duke's ongoing bring-your-battery demand-response program that pays monthly bill credits to NC homeowners who let Duke periodically dispatch their enrolled battery; functions as an ongoing revenue stream layered on top of, or independent from, the one-time PowerPair rebate.
Duke Energy Power Manager (DEC) / EnergyWise Home Battery Control (DEP)
An ongoing Duke Energy virtual power plant / demand-response program for home battery owners in North Carolina. DEC customers enroll their battery in 'Power Manager'; DEP customers enroll in 'EnergyWise Home.' Enrolled batteries can be dispatched by Duke a minimum of 30 and maximum of 36 times per year to send stored power back to the grid during periods of high demand, in exchange for monthly bill credits reported at roughly $23 to $92 per month depending on battery size/configuration (about $276-$1,104/year), payable for up to 8 years. Commonly paired with PowerPair enrollment but can also apply to batteries installed outside PowerPair. Requires the battery/inverter to stay internet-connected for remote dispatch.
Lease vs. buy in North Carolina
As long as you own the system (buying with cash or a solar loan), you are eligible for the property tax abatement (an 80% exclusion from property tax assessment). If you choose a solar lease or Power Purchase Agreement (PPA), the third-party company owns the equipment and claims the tax incentives, potentially passing along some of the savings as a lower monthly payment. See our full lease vs. buy vs. PPA guide for more information.
Estimate your own numbers
You can use our solar calculator with your own home's usage to get an idea of your savings potential.
FAQ
Are there any state tax credits for solar in North Carolina?
No. The North Carolina Renewable Energy Tax Credit expired in 2016 and has not been renewed. However, North Carolina residents can still take advantage of the federal residential clean energy credit (for systems completed before the end of 2025), and property tax abatements.
Does Duke Energy still offer 1:1 net metering?
No. Duke Energy closed its legacy 1:1 retail-rate net metering (Rider NM) to new applicants on September 30, 2023. New solar customers now choose between Rider RSC (which requires a Time-of-Use rate) or Rider NMB (a bridge rate available through 2026). In both cases, exported energy is credited at an avoided-cost rate well below the retail rate.
What is the Duke Energy PowerPair program?
PowerPair is an incentive program offering up to $9,000 for installing a new solar and battery system together. You receive up to $3,600 for the solar portion and up to $5,400 for the battery. It is available to Duke Energy Carolinas and Duke Energy Progress customers, although capacity is limited and allocated on a first-come, first-served basis.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil