North Carolina is the 21st sunniest state, with 77.6% sunlight and 4,466 kJ/m² compared to other states. The state of North Carolina would be the best place to install Solar energy systems for a property owner who wants to go with renewable energy and receive great North Carolina solar incentives and rebates.
But what about North Carolina solar incentives? Energy suppliers in North Carolina have achieved their common RPS goal and have reduced the size of solar incentives available to property owners. Duke Energy offers a solar rebate, though it can be a nuisance.
Although the state legislature could take additional steps to promote solar energy, such as strengthening the Renewables Portfolio Standard and renewing the expired state tax credit, solar power still offers many benefits in North Carolina.
The cost and payback time of installing a solar system for your home in North Carolina are better than in some other states. Several incentives are available that make it among the best states in the US for going solar.
The solar incentives are still ongoing in North Carolina! Solar Power Performance Payments are also available. What are solar power performance payments? They're incentives that are based on the metered power system that you use. You can earn Solar Renewable Energy Credits based on the kilowatt-hours generated by your solar system.
When installing solar panels on your roof, you want to ensure you get credit for all the power your system generates. Fortunately, North Carolina offers a net metering policy that compensates you for the additional electricity your solar system generates and enables you to use those credits when your system produces less energy. State law requires North Carolina three biggest utility companies, Duke Energy, Progress Energy, and Dominion North Carolina Power, to provide customers with total retail rate net metering. Any excess kilowatt-hours that your solar panels produce in a billing month and are not consumed on your property will be carried over as a credit to your bill at the total retail rate for the following month.
Thanks to North Carolina interconnection standards, net metering is more convenient for utility companies to provide to property owners, as there are more rigid, transparent guidelines for everyone to follow.
Duke Energy and Duke Energy Progress have a program that offers solar rebates for homeowners, which is in its fourth year out of five. Property owners can get a rebate of $0.40/Watt for systems up to 10 kilowatts, which means an average 8 kilowatt (kW) system would be eligible for a rebate of $3,200. Non-residential customers can also get rebates worth $0.30/Watt up to $30,000, while non-profit customers can receive $0.75/Watt up to $75,000. Unfortunately, Duke Energy has already used the rebate funds for the first half 2022, but solar customers can still sign up for a waitlist.
When you install a solar energy system in North Carolina, your property value will increase due to expected electricity cost savings. To encourage more people to use solar power, the state has exempted any increase in property value from solar power systems from property taxes. This means the entire increase in home value resulting from the solar power system is exempt from property taxes.
You can also use the Federal tax credit if you install a solar energy system. You can obtain a federal tax credit of 30% on your solar panel system's total cost, including equipment, labor, and permitting, if you install it before the end of 2032. If your solar energy system costs $20,000, you can get a federal solar tax credit of $6,000. However, the federal tax credit drops to 26% from 2033 onwards.
In North Carolina, cities and counties can now provide low-interest loans for energy upgrades, including solar panels. These loans have a maximum term of 20 years, an interest rate cap of 8%, and can be renewed easily. Additionally, residents of Asheville can get a rebate on their building permit when installing solar on their residential or commercial properties, which can be a helpful small incentive.
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