The State of Solar in 2025
North Carolina may be known for sweet potatoes and college basketball rivalry, but we’re also becoming a national leader in clean energy. Solar has grown into both a financial and environmental choice—ranking fourth in installed capacity with nearly 9,700 MW powering over 1.1 million homes. In the past decade, system costs have dropped nearly 40%, while electricity prices climbed roughly 20%.
What Shaped Solar in 2025
From the Blue Ridge Mountains to the coast, solar is powering a cleaner, smarter, and more resilient North Carolina.
Before we look ahead, it’s worth taking a closer look at what’s shaping North Carolina’s solar landscape right now. From rising electricity costs to evolving incentives and new technology, these factors are redefining how homeowners power their lives.
Here’s how the landscape has evolved this year:
Solar is everywhere: Once limited to early adopters, solar has gone mainstream across North Carolina’s cities and small towns.
Electric rates keep rising: More rate hikes are expected through 2026, making now the time to lock in stable solar savings.
Federal incentives are fading: With major federal programs ending, 2025 has been a turning point for solar as folks take advantage before they’re gone.
Local incentives are filling up fast: Thanks to such strong demand, solar programs like Duke Energy’s PowerPair are nearing capacity.
Energy equity matters: Federal cuts under the current administration ended Solar for All, putting the focus on local innovation to keep solar accessible.
Smarter, resilient homes: Battery storage and EV integration are becoming standard, helping homeowners save more and stay powered through storms.
Now that you have the quick hits, let’s dive in.
Rising Costs of Electricity
North Carolina is catching up to national averages in electricity costs… and quickly. For a long time, our state ranked around #45 in electricity costs per state (with #1 being the highest costs), benefiting from relatively cheap energy.
Today, electricity averages about 15¢/kWh, likely reaching 25¢/kWh by 2032. Solar allows you to lock in your electricity costs for years, protecting your household budget from rate hikes. Think of it like this: every month you wait to install solar is another month paying higher bills and another month of cost uncertainty.
Federal & Local Incentives
Solar has become and will continue to be more affordable and accessible in North Carolina—even with the 30% tax credit expiring at the end of 2025.
Federal Solar Tax Credit (Section 25D)
- Homeowners can claim 30% of their system’s total cost on their federal taxes.
- Set to expire on December 31, 2025
When news broke about plans to eliminate this credit, it was all hands on deck. Our team jumped into action—sending emails, making calls, and showing up in D.C. and locally to share why solar (and the tax credit that supports it) matters for North Carolina.
We didn’t get the outcome we hoped for, but we showed up, we were heard, and we made a difference.
Duke Energy’s PowerPair Incentive
- Incentive: Up to $9,000 for installing a new solar system with battery storage
- Availability: Limited capacity — first come, first served based on application date
The PowerPair program has been one of the most impactful local solar incentives we’ve ever seen. What began as a pilot has taken off—helping hundreds of North Carolina homeowners make solar + battery systems more affordable and resilient.
Because of its success, the program is now nearing full capacity. While we’re optimistic about future incentives like it, nothing is guaranteed, so now’s the time to take advantage while it’s still open.
For updated information on capacity, give Spencer or Dave a call at (919) 918-0355.
Solar For All
You may have seen headlines about the EPA removing funding from different states, and unfortunately, North Carolina falls into that pile.
Solar For All was a program designed to provide funding for low-income homes and communities to go solar while also targeting workforce development in rural areas. A $156 million Federal investment would have helped 12,000 low-income and moderate-income households across our state access solar with a 20% reduction in home energy bills.
After 2025: This program will be on hold in North Carolina after the EPA issued a letter to terminate the program in August.
Solar + Battery Storage: A Game-Changer
Battery storage has quickly gone from a nice add-on to a North Carolina standard. Only a few years ago, 15% of systems included batteries—today, it’s about 95%.
Why Batteries Matter in North Carolina
- Energy security: Keep essential appliances running through storms and outages, like medical devices and refrigerators (and never miss that Sunday night HBO release again).
- Cost savings: As Duke Energy introduces Time-of-Use rate structures, batteries store power when it’s cheap and use it when rates spike.
- Independence: Gain more control over how and when you use your energy.
- Community resilience: Battery storage helps North Carolina balance grid demand, prevent blackouts, and reduce strain during peak hours.
We work with trusted brands like Tesla Powerwall and FranklinWH to deliver storage solutions tailored to your goals—whether that’s simple backup power or full energy independence.
Check out this video we did with FranklinWH 👇
Solar Battery Storage vs. Backup Generators
Generators keep the lights on, but solar + battery storage does it smarter. It’s low-maintenance, fuel-free, and sustainable, powering essentials during outages. Batteries also help balance energy use across the grid, which keeps things more reliable for everyone in North Carolina.
And let’s be honest, unlike your cousin’s old generator, it won’t sound like a NASCAR race in the backyard. Learn more →
EV Integration
Electric vehicles are rolling into more North Carolina driveways than ever — and now, smart home technology is making it possible for your EV to do more than just drive. From Ford to Tesla, automakers are introducing ways for your car to help power your home and save on energy costs.
Here’s a quick breakdown of the technology available:
Vehicle-to-Grid (V2G): Lets your EV send stored power back to the grid, helping balance energy demand and even lower your electric bill.
Vehicle-to-Load (V2L): Allows your EV to directly power things around the house, from charging your phone to running essential appliances.
Adoption in North Carolina is still in the early stages, but exciting progress is happening with Tesla’s PowerShare and FranklinWH’s new V2L technology. Pairing your EV with solar is the ultimate combo: charge your car, protect your home, and stay ahead of rising energy costs, all while bringing a bit of the future to your own driveway.
Is Solar Right For You
This is the question we ask ourselves for every person who walks through our doors or gives us a call. The honest truth is that solar isn’t right for everyone, and if you hear otherwise from a company… well… I won’t tell you what to do, but you should probably run.
Your home is a good fit for solar if:
- You own your home (renters can participate in community solar programs—more on that below)
- Your electricity bills are high: higher bills mean faster savings
- Your roof has good sun exposure (south-facing preferred, but east/west roofs can work)
- You can take advantage of incentives, like Duke Energy’s PowerPair
We’re just scratching the surface here, learn more in our blog: How to Know if Solar is Right for You →
Looking Ahead
For nearly 25 years, we’ve watched solar in North Carolina grow from a few rooftop panels to more than a million systems statewide. What began in a living room in 2001 has become a 200-person team rooted right here in NC, helping homeowners make smart, lasting energy choices through every policy shift and new technology.
As a certified B Corporation, our work is about more than energy; it’s about people, community, and resilience. From schools powered by sunshine to families staying safe through storms, solar continues to strengthen North Carolina’s future.
To hear more about our thoughts on the future of solar in North Carolina, check out our next blog, here!
