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NC Solar Incentives to Take Advantage of in 2026
- 10 Minute Read
Topics in This Article
North Carolina Solar Discounts
Solar energy rebates and incentives are shifting in 2026 based on recent legislation. Here’s what solar panel incentives are available to homes, businesses, nonprofits, and government organizations in North Carolina in 2026.
Upfront Tax Disclaimer
We are not tax professionals (surprise!) and this post does not constitute professional tax advice or guidance. If you end up going on your solar journey with us, we can connect you with Lucas Tax and Energy, a CPA specializing in energy related tax issues, that we keep on retainer as a service to our customers.
part 1
Residential Solar Incentives
If you’re considering solar for your home in North Carolina there are three incentives currently available:
Duke Energy PowerPair Incentive
- For new solar + battery systems
Duke Energy’s PowerPair incentive provides up to $9,000 in incentives for new solar + battery installations. This is a one-time incentive with limited space for Duke Energy customers only. There is still capacity remaining for homes in Duke Energy Carolinas territory (unfortunately space has filled for Duke Energy Progress customers).
Right now this is the largest solar incentive available for homes in North Carolina so it’s important to act quickly to take advantage of the extra savings. If you’re interested, we’ll help you get all your ducks in a row before space runs out. 🦆
Duke Energy Battery Control Program
Duke Energy offers ongoing bill credits when you enroll your battery in their Battery Control Program, called Power Manager (DEC) or Energy Wise (DEP). This program is available to both existing and new solar + battery customers (outside PowerPair eligibility).
Enrolling in this program allows Duke Energy to deploy your battery a set number of times per year to offset the grid’s energy needs during peak demand while still keeping a safe minimum charge in your battery. Because this is all done remotely, you may have also heard the term Virtual Power Plant (VPP) used to describe programs like this.
The Battery Control incentive can be applied to multiple solar batteries, but the total combined incentive is capped to a residential interconnection limit of 20 kW. So the maximum incentive you could receive would be $91 a month or $1,092 annually.
Limited Time Powerwall Savings
Homes that order a Powerwall between now and June 30th are eligible for up to $1000 Powerwall rebate from Tesla.
Rebate
Other NC Residential Solar Incentives
There is NO state solar tax credit for North Carolina, so be cautious if you see that listed on a proposal. Your biggest solar savings opportunities in North Carolina are:
- Duke Energy PowerPair Residential Incentive (limited availability)
- Battery Control incentives from Duke Energy for enrolled systems
- $500 Powerwall Rebate – direct from Tesla for systems contracted before June 30, 2026 (Note: Tesla has extended this deadline from March 31st!).
Work with a trusted installer to ensure transparency and accuracy on pricing and program availability.
part 2
Solar Incentives for Businesses in NC
There are powerful solar incentives available to North Carolina businesses, but they’ll be phasing out soon so timing is key! Solar incentives available to businesses in 2026:
- 30% Federal Solar Tax Credit (limited time)
- Bonus Depreciation
30% Federal Solar Investment Tax Credit for Businesses
Businesses that install solar systems can claim 30% of their system cost as a dollar-for-dollar tax credit on federal taxes. There is no cap on system size, but this incentive will only be available for systems installed before the end of 2027.
Safe harbor rules apply:
- If you’re building a new construction project, you have until July 4th, 2026 to sign a solar contract and “safe harbor” the tax credit.
- This preserves the tax credit for up to four years so you can get your project built and solar system installed.
- Otherwise, projects that do not safe harbor must be installed by December 31, 2027 to receive the full 30% Federal Tax credit.
Bonus Adders may increase your credit:
- +10% for using qualifying domestic content
- +20% for eligible low-income projects (including LIHTC projects for Multifamily)
Example:
A $205,000 solar system = a $61,500 credit
Net cost: $143,500 (before depreciation, adders, or grants)
More information about the Federal Tax Credit can be found on DSIRE.
100% First-Year Bonus Depreciation
Thanks to recent tax law changes, 100% bonus depreciation is back for qualifying solar equipment. This allows your business to write off the entire depreciable basis of the system in year one, on top of the 30% solar tax credit.
- Paired with the 30% Federal Tax Credit, this can substantially reduce net cost.
- The exact benefit depends on your tax profile, so we recommend consulting a tax professional. (We can connect you with Lucas Tax & Energy, a CPA specializing in clean energy.)
More information about bonus depreciation can be found at DSIRE: MACRS Depreciation.
Duke Energy Solar Rebate for Business
At this time, Duke Energy does not offer commercial solar incentives, including through the PowerPair program (which is residential-only).
We’ll update this section if a new commercial incentive becomes available.
part 3
Nonprofit Solar Incentives
Thanks to the Inflation Reduction Act, nonprofits and government organizations have access the 30% Federal Solar Tax Credit through Direct Pay. This means they are able to receive a cash reimbursement from the IRS after the system is installed and placed in service.
30% Federal Direct Pay Reimbursement
Historically, nonprofits & government organizations were not eligible for the 30% Solar Investment Tax Credit (ITC) since nonprofits do not have tax liability. However, the signing of the Inflation Reduction Act (IRA) expands the 30% incentive to include nonprofits and government organizations through a Direct Pay Reimbursement. This is huge news in the solar world, and opens up many more opportunities to expand solar across nonprofit and government-owned roofs!
📅 Because of updated legislation in the so called ‘One Big Beautiful Bill,’ this incentive is only here for a limited time. Systems must be in service by December 31, 2027 to qualify for the full 30%, subject to the same safe harbor rules as businesses.
Other Solar Incentives for Nonprofits
- Nonprofits are not currently eligible for Duke Energy’s PowerPair or battery control incentives.
- We’ll share updates here if new programs become available.
Make a resolution to stabilize your energy bills in 2026!
There are many reasons to go green, and several incentives that will save you even more. Going solar is a big decision, with a big reward. Let us know how we can help you tap into solar incentives and take control of your power this year.
2024 North Carolina Solar Incentives
30% Federal Solar Tax Credit
Residential ・ Commercial
Available to homes and businesses, the Federal Solar Tax Credit is a tax credit that you can claim for installing a solar or battery system on your property and is worth 30% of system costs.
30% Direct Pay Solar Credit
Nonprofit ・ Government
Tax-exempt, nonprofit, and government organizations can now tap into solar cost savings through a Direct Pay reimbursement, worth at least 30% on system costs.
USDA REAP Grant
Farms ・ Rural businesses
The USDA REAP program provides grant funding to farms and rural businesses for solar energy systems to help permanently reduce operating expenses. When combined with other incentives, eligible farms & businesses can save 70-90% on the cost of solar with a REAP Grant.
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