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NC Solar Incentives to Take Advantage of in 2026

March 17, 2026
10 Minute Read

Topics in This Article

North Carolina Solar Discounts

Solar incentives in North Carolina changed in 2026. The 30% federal tax credit expired for homeowners at the end of 2025, leaving the most valuable solar incentives to Duke Energy programs, battery incentives, and how you choose to pay for your system. This guide covers every NC solar incentive available now: Duke Energy’s PowerPair incentive and Battery Control programs, the incentives businesses and nonprofits can still claim (including the 30% federal credit with its project-completion deadline), and what leasing changes about who captures the credit. Everything below reflects the current rules, and we update this page as programs change.

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

The 30% federal residential solar tax credit ended for residential systems at the end of 2025. If you buy your system with cash or a loan in 2026, there is no federal credit to claim. Three things have taken its place for North Carolina homeowners:

Duke Energy PowerPair
Duke Energy battery programs
Leasing

Duke Energy PowerPair Incentive

1. Duke Energy PowerPair. Homeowners who install a new solar plus a battery can earn an incentive of up to $9,000 through Duke Energy’s PowerPair program, paid based on the size of the solar and battery system. It is currently the largest single incentive available to NC homeowners, but has a very limited capacity. The program is down to the final 5% of capacity remaining for Duke Energy Carolinas customers, and has already filled for Duke Energy Progress.

If you’re interested in this incentive, don’t miss out and reach out now!

Duke Energy Battery Control Program

2. Duke Energy battery programs. Enrolling an eligible battery in Duke’s battery control and demand response programs earns ongoing bill credits in exchange for letting Duke draw from the battery during peak events for a limited number of times per year. Programs like these, also known as Virtual Power Plant (VPP) programs, are gaining popularity across the country as utilities explore how to distribute energy demand.

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.

Learn more about how the Battery Control program works.

Leasing

3. Leasing. When a leasing company owns your system, it can claim the federal commercial credit and pass the value through as a lower upfront price or payment. It is the main way homeowners still benefit from federal solar incentives in 2026. Our solar lease vs buy guide breaks down the tradeoffs.

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’s PowerPair incentive (limited availability), Duke battery program bill credits, and the value leasing companies can pass through from the federal commercial credit. Work with a trusted installer to ensure transparency and accuracy on pricing and program availability.

part 2

Solar Incentives for Businesses in NC

Businesses and nonprofits can still claim the full 30% federal solar tax credit but systems must be installed by the end of 2027. If you’re considering a solar project, now’s the time to reach out. We need to have your project signed by the end of Q1 2027 to lock in a spot on our install calendar to make sure your project is completed by the end of the year. Our guide to the commercial solar tax credit deadline explains the timeline in detail.

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. Under current federal rules, solar projects that did not begin construction by July 4, 2026 must be placed in service by December 31, 2027 to qualify for the full 30% credit. The July 4, 2026 begin-construction window to lock in a longer continuity safe harbor has passed; new projects should plan to the December 31, 2027 placed-in-service deadline.

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 to 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 placed in service by December 31, 2027 to qualify for the full 30% (same project-completion deadline as businesses; the July 4, 2026 begin-construction safe-harbor window has passed for new projects).

Learn More →

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.

Frequently Asked Questions

What solar incentives are available in North Carolina?

For homeowners: Duke Energy’s PowerPair incentive (up to $9,000 for a new solar plus battery system – Duke Energy Carolinas customers only), Duke battery program bill credits, and the value leasing companies can pass through from the federal commercial credit. For businesses and nonprofits: the 30% federal solar tax credit (with project completion deadline of December 31, 2027) and bonus depreciation.

Is the federal solar tax credit still available in North Carolina?

Not for homeowners, it ended for residential installations after December 31, 2025. It remains available for commercial projects, and homeowners who lease can still benefit indirectly because the leasing company claims the commercial credit and prices it into the lease.

Does North Carolina have a state solar tax credit?

No. North Carolina does not currently offer a state income tax credit for residential solar. The state-level value comes through utility programs and favorable property tax treatment for solar equipment.

What is the Duke Energy PowerPair incentive?

PowerPair is Duke Energy’s incentive for new solar-plus-battery installations, worth up to $9,000 based on system size. Participants can also enroll in battery control events that support the grid during peak demand to receive additional monthly bill credits.

Stabilize Your Energy Bills

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.