Since the passing of the Inflation Reduction Act, there are a number of financial incentives that businesses and nonprofits in North Carolina can take advantage of when they go solar. Keep reading to see what solar incentives businesses can count on, and what other grants are available to increase your solar savings potential.
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.
Commercial Businesses (with Tax Liability)
The Federal Tax Credit incentive for solar offers businesses (and homes) that install a solar system a tax credit worth 30% of the system’s cost. This incentive is set to stay at this rate until 2032, without a cap on the value of the system that can be claimed.
For instance, a business installing an average 100kW solar system costing $205,000 could claim a tax credit of $61,500 when filing their 2024 taxes, effectively reducing the net system cost to $143,500. The Federal Solar Tax Credit covers a wide range of solar costs, including solar panels, mounting equipment, inverters, battery storage, system wiring, installation labor, and associated taxes.
Tax-Exempt & Nonprofit Organizations
The signing of the Inflation Reduction Act brings big news for nonprofits & tax-exempt organizations – a new 30% Direct Pay Reimbursement! This means that eligible tax-exempt and nonprofit organizations can apply to receive an “elective pay” refund worth 30% of the cost of the solar project. A full list of eligible organizations and an overview of the application process can be found here.
Commercial Businesses
Most assets are depreciated over a long period of time, but commercial solar systems are eligible for accelerated depreciation in the first year. This gives businesses owners the benefit of additional tax savings. Depreciation value depends on the business’ effective tax rate and can range from 20-35% off the cost of the system in the first year.
Request a free assessment to learn more and get a custom proposal for your business, nonprofit, or tax-exempt organization.
EXCELLENT rating
Based on 160 reviewsTrustindex verifies that the original source of the review is Google. SEM installed our first set of solar panels back in 2018. The installation went smoothly, and we've never had any issues with the panels, inverters, etc. The installation was covering 80-90% of our electricity usage annually. We reached out to Graham in early 2025 as our electricity needs had changed. We had added two electric cars, and we were getting tired of frequent (5+ times a year) power outages. We talked to Graham about adding more panels and a batter backup system. SEM installed the new panels and Franklin aGate / aPower 2 battery. Installation was completed and we were able to turn the system on in April. We couldn't be happier. In May, our solar system produced 101% of our electricity needs, including two electric cars. There was a three-hour power outage in the middle of the night in early May -- we didn't know about it until we woke up and saw text alerts from Duke Energy that there was an outage. The aGate / aPower 2 took over while we slept, and kept things running smoothly. We'd highly recommend working with SEM. Graham and all the other folks we worked with are fantastic! Mike SJune 7, 2025Trustindex verifies that the original source of the review is Google. Had a fantastic experience with Southern Energy Management installing a solar system on my house, as well as some electrical work to accommodate an EV. Their team was very helpful and patient with all of my dumb questions and incredibly efficient with the timing of installation! They also walked me through the rebate programs to make sure I got my money's worth. Highly recommend. Adrian DMay 27, 2025Trustindex verifies that the original source of the review is Google. Response to feedback and experience: Katherine reached out diligently to go over the experience and made every effort to explain and course correct the processes that caused delays. Also, Katherine’s effective follow up with Duke ensured that the promised power rebate check was issued and credited. 9k promise fulfilled!! Truly appreciate the responsiveness and sensitivity to customer journey. As indicated before, the solar system is working great and powers the whole 4,200’sqft home for energy requirements. Well done Southern Energy team and Katherine, you’re a star! ——————— Installation is finally complete but two major issues to be aware of: 1) A 4 month delay in starting the project despite repeated follow-ups and 2) Current situation where the doubly promised Duke rebate is in limbo after a 39k installation. The commitment was for effective follow up with Duke but no news yet. While the team did a professional job during installation, the delays and radio silence pre and post is excruciatingly painful as a customer. Rajneesh PMay 14, 2025Trustindex verifies that the original source of the review is Google. Southern Energy Management was fantastic. They walk you through the process and give you the right amount of guidance and detail. Austin Crumpler and team were very professional, accessible and prompt. The installation team was great and the whole project was seamless. I highly recommend SEM David KMay 7, 2025Trustindex verifies that the original source of the review is Google. Paul and the Southern Energy team did a great job explaining the benefits of solar and walking me through the process. We couldn’t be more satisfied with the results! Thank you Jake HApril 28, 2025Trustindex verifies that the original source of the review is Google. It was a pleasure working with Yanni at Southern Energy Management. His extensive knowledge, kindness, and professionalism were evident throughout our engagement. While initially we hadn't planned to invest in a solar system immediately after purchasing our new home, Yanni clearly and effectively communicated the available incentives and rebates, which ultimately made the decision to move forward an easy one. After exploring options with several other solar vendors, Southern Energy Management presented the most compelling overall offer. Yanni turned us over to Jordan, our project manager. Under Jordan, the installation process was executed efficiently, with the solar panels installed in February and the electrical work and battery backup completed in March. The entire Southern Energy Management team demonstrated promptness, strong communication skills, deep knowledge, and consistent professionalism. They also provided comprehensive information that clearly outlined each step of the process from beginning to end. We wrapped with Yanni and he answered all of our questions. Based on our positive experience, we wholeheartedly recommend Southern Energy Management to anyone considering the purchase of a solar system. Reginald HApril 24, 2025Trustindex verifies that the original source of the review is Google. Went smoothly from start to finish. We are now up and running and enjoying getting to know our system. Eira TMarch 26, 2025Trustindex verifies that the original source of the review is Google. My experience with Southern Energy Management was top notch. My solar journey was quite lengthy due to HOA issues, but persistence paid off and with Southern Energy Management providing additional information that my HOA requested, my system is now up and running. Our advisor took the time to review our specific situation and design a system matched for my needs, and helped navigate all the available incentives. Once the project was officially underway I was assigned a project manager who kept me informed with regular updates on how things were progressing in the background (permitting, interconnection applications, etc.) construction schedule, inspection, and then finally on permission to operate from the utility. This was a very welcome concierge level of service. Actual installation only took one day for the panels, one day for the electrical work (minus the battery, which was on backorder), and then an additional half day to install the battery once it arrived. The installer got the equipment set up and commissioned the battery, and then after everything was complete and up and running, I was given an orientation to go over the app use and settings (the inclusion of a battery in the system provides a lot of additional control), Duke PowerPair program participation, and answering any questions I had. I feel that Southern Energy Management and I form a team -- they did not just install my system and then disappear. I couldn't be more pleased with the results so far. My first electric bill (with incentive payments) was only $13.22, and this was only for a partial month of solar. In my current month, the system is working extremely well and I have given back more to the grid than I have drawn from it. The system is well designed and not only am I now saving a lot of money, but I feel I am actively helping the environment by using and supplying clean solar energy back to the grid! Lance PMarch 17, 2025Trustindex verifies that the original source of the review is Google. I went with Southern Energy on the recommendation of neighborhood happy customers, and I’m so glad I did. I had them install solar panels and a battery for energy storage. Looking at the app on a sunny day and seeing my house running only on my own energy is a quick delight. The team at Southern Energy was very informative, efficient and responsive. They talked me through the process with frequent updates and clear instructions. I love the final outcome, but without the knowledgeable assistance of Southern Energy staff I think this would have seemed overwhelming. With this company, it wasn’t. They handled it all: filings with Duke and county for approval, installation, education, and great customer service. Highly recommended. Teresa MMarch 3, 2025
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.
To be eligible for this incentive you must:
The following are a few adders your business may be eligible for. Again, make sure to consult a tax advisor for up-to-date info and to confirm your eligibility.
+ 10% bonus for domestic material/equipment
+ 10% bonus for a project located in an energy community
+ 10-20% bonus for low-income community projects
Our process is designed to educate and empower you so you can make a smart solar decision.
Let us know you’re ready to get started & we’ll determine what you qualify for
We’ll provide a free quote for a custom solar system using LIDAR & satellite technology
If you are pursuing a solar incentive that requires an application (like the USDA REAP Grant), we work with a dedicated grant writer who will lead the application process
Once your grant is awarded, we’ll handle everything including paperwork and & install to get your system up and running
Sit back, relax, & enjoy 30+ years of operational cost savings!
The first step is to confirm your eligibility. There are many incentives for commercial solar systems to take advantage of.
Currently, the Solar Investment Tax Credit (ITC) is 30% with the possibility of other additional incentives, or “add-ons,” depending on equipment, location, and other factors. Make sure to speak to a tax advisor before moving forward.
You can NOT write off a solar investment for your business because there is already a strong tax benefit (Investment Tax Credit + adders) and potentially other incentives through USDA REAP.
Accelerated bonus depreciation can also be applied to your solar investment. Reach out to your tax advisor to learn more.
Currently, there are no major solar incentives specific to the state of North Carolina. There are many national incentives for residential, commercial, and nonprofit solar systems to take advantage of.
The most common incentive is the Federal Solar Investment Tax Credit (ITC), worth 30% of your solar system cost. There is also the possibility of additional incentives, or “add-ons,” depending on equipment, installation location, and other factors. Make sure to speak to a tax advisor before moving forward.
Non-profits receive similar incentives as above but in the form of a “direct payment” from the IRS.
Rural small businesses and farms may qualify for an additional grant of up to 50% from the USDA.
Accelerated bonus depreciation is allowed, but solar can not be included in section 179.
In North Carolina, no major state-wide solar incentives have been announced for businesses in 2024. There are, however, several Federal level incentives that businesses, nonprofits, and government organizations can be eligible for including:
We recommend consulting your tax professional for an in-depth evaluation of what you may qualify for.
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