Solar Panels in North Carolina (2026): Cost, Duke vs. Dominion, and Payback

Which Solar Incentives Are Still Available in North Carolina in 2026?

Utility and state property-tax incentives remain; the federal homeowner credit does not. The Residential Clean Energy Credit (§25D), worth 30% of system cost, ended for systems installed after Dec 31, 2025, under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Installation had to be complete by that date; see the IRS FAQs on the OBBB changes.

Not tax advice; confirm with a tax professional.

PowerPair is the largest remaining incentive for Duke Energy customers, but it requires installing solar and a battery together and has a capped program size. Participants must enroll in Duke’s Solar Choice tariff or Bridge Rate, and the Bridge Rate option requires granting Duke control of the battery for a limited number of events a year in exchange for monthly bill credits. Installers report that some regions have already reached capacity, so check availability with Duke or your installer before you sign. The solar portion scales with your inverter’s AC rating, so a typical 9 kW-DC system earns less than the $3,600 maximum.

PowerPair does not pay for solar alone, so the practical rule for any rebate or price cut is simple: each $1,000 off the system price shortens simple payback by about 0.8 years in our model.

The property-tax exclusion (N.C. Gen. Stat. 105-275(45)) removes 80% of the appraised value of a solar electric system from the tax base. According to a North Carolina Department of Revenue memo, residential systems that are not used for business and not depreciated may be treated as non-business personal property and excluded entirely, so ask your county assessor how yours will be classified. A bill in the 2025 session (H1213, advanced from committee on June 30, 2026) would end the exclusion for systems placed in service on or after July 1, 2027; it was not law when this article was updated, so check its status if your timeline is close.

Businesses and farms can still use §48E within the deadlines above plus 5-year MACRS depreciation, and rural businesses and agricultural producers can apply for USDA REAP grants when rounds are open. Nonprofits, churches, schools and local governments can use elective (“direct”) pay under §6417 for §48E on qualifying projects within the same deadlines.

Other home-energy credits changed too: the §25C credit for heat pumps and insulation ended after 2025, and federal EV credits ended for vehicles acquired after Sep 30, 2025. State-run IRA Home Energy Rebates (HEAR/HOMES) were not repealed by the 2025 law; availability depends on North Carolina’s program and remaining funds, so check with the state energy office and DSIRE.

How Long Does Solar Take to Pay Back in North Carolina?

About 21.5 years of simple payback for a typical 9 kW system at $27,000 on Duke net billing, based on year-one savings of about $1,255. If electricity prices rise 3% a year and panels degrade 0.5% a year, cumulative savings cross the system cost at about 17.4 years, and the model projects about $15,800 in net savings over 25 years.

Source: GreenEnergyCalc standard model; see methodology.

Chart summary: At the $27,000 model price, the Duke net-billing line crosses zero at about year 17 and ends 25 years about $15,800 ahead. The Dominion net-metering line breaks even around year 15 and ends about $26,200 ahead, and a $23,400 Duke quote breaks even around year 15.5 and ends about $19,400 ahead. All three outcomes depend on rates actually rising and on the panels producing as modeled.

Without solar, this household’s bills would total about $65,200 over 25 years (a $149 average monthly bill rising 3% a year, which corresponds to roughly 14,000 kWh a year at 12.8 cents). With solar, remaining bills plus the system cost total about $49,400. For comparison, the same system completed by Dec 31, 2025, with the now-ended 30% credit would have cost $18,900 and paid back in about 15.1 years.

Financing changes the picture. A $27,000 loan at 7% over 12 years costs about $278 a month, or about $209 a month over 20 years, versus average year-one savings of about $105 a month, so a loan-financed system is cash-flow negative for years. Leases and PPAs need no money down; the installer may still claim the §48E business credit if its project meets the deadlines above and pass some value through, but no specific discount is guaranteed. Model your own terms with the solar payback calculator. For other states, see the payback period by state guide; Virginia and South Carolina are useful regional comparisons.

Sources and Methodology Notes

• U.S. Energy Information Administration, Electric Power Annual, average revenue per kWh by state (2024 data): NC residential 14.13¢, U.S. residential average 16.48¢.
• EnergySage, mid-2026 North Carolina city cost pages, for example Raleigh ($2.29/W, June 2026) and Charlotte ($2.30/W, June 2026).
• EnergySage, North Carolina solar rebates and incentives: PowerPair terms, no state sales-tax exemption for solar.
• North Carolina Department of Revenue, Solar Energy Electric Systems memo: 80% exclusion under G.S. 105-275(45) and non-business personal property treatment.
• North Carolina General Assembly, H1213 (2025 session): proposed end of the exclusion for systems placed in service on or after July 1, 2027.
• IRS, FAQs on Public Law 119-21 changes to §25D and related credits.
• Model values (5.2 peak sun hours, 0.82 system efficiency, 0.70 and 0.87 bill-offset factors, 3% rate escalation, 0.5% degradation, $3.00/W) are assumptions of the GreenEnergyCalc standard model, not published statistics. Utility tariffs, incentives and legislation change; confirm current terms with your utility, installer and a tax professional before buying.