The financial picture for NC solar changed at the end of 2025. The federal residential clean energy credit, which covered 30% of solar and battery installation costs, expired December 31, 2025. Installations completed from January 2026 onward do not qualify.
What does exist: Duke Energy’s PowerPair program, two NC-specific tax exemptions, and retail-rate net metering.
Duke Energy PowerPair
The most significant current incentive for NC homeowners is Duke Energy’s PowerPair program. It provides one-time installation incentives for customers who install solar and battery storage together for the first time.
The incentive structure:
- Solar: $0.36 per watt-AC, up to 10 kW ($3,600 maximum)
- Battery: $400 per kWh, up to 13.5 kWh ($5,400 maximum)
- Combined maximum: $9,000
The program applies to both Duke Energy Progress (Raleigh) and Duke Energy Carolinas (Charlotte) customers. It runs on a first-come, first-served basis with a program cap, so applying early matters. You can apply before installation to lock in your incentive reservation, or within 90 days of your system going live.
If you also enroll in Duke Energy’s Power Manager Battery Control program, you receive the same one-time incentives plus a monthly bill credit based on your battery’s capacity, in exchange for allowing Duke Energy to remotely manage battery charging and discharging.
Requirements
- New installation of both solar and battery at your property for the first time
- Must use a Duke Energy-approved Trade Ally installer
- Must enroll in a qualifying rider (Residential Solar Choice or Net Metering Bridge)
- Must maintain enrollment for 24 months minimum
- Internet connectivity required for system monitoring
What the NC state picture looks like
North Carolina has two tax provisions that are still active.
Sales tax exemption. Solar equipment is exempt from NC sales tax under G.S. 105-164.13(11b). On a $25,000 system, that saves approximately $1,750 at the current combined rate.
Property tax exemption. Solar installations are excluded from your home’s assessed value for property tax purposes under NC G.S. 105-277.3. Your tax bill will not go up because you added panels.
There is no active NC state income tax credit for residential solar. The 35% credit that existed through 2015 was not renewed.
Duke Energy net metering
Duke Energy Progress and Duke Energy Carolinas both offer net metering for residential solar customers. Excess generation earns a credit on your bill at the retail electricity rate. Credits carry forward month to month through a 12-month period. At the end of that period, any remaining surplus is settled at the avoided-cost rate, which is lower.
The NC Energy Solutions for North Carolina Act (HB 951, 2021) set a path toward avoided-cost rates for new customers in future years. The timeline depends on ongoing NC Utilities Commission proceedings.
What a realistic incentive stack looks like
Here is how the numbers can work for a Raleigh homeowner who installs solar and battery together:
8 kW solar + 13.5 kWh battery
- Solar gross cost: $26,000 (equipment and installation)
- Battery gross cost: $12,000
- Combined gross cost: $38,000
- Duke Energy PowerPair (max): -$9,000
- NC sales tax exemption: already reflected in pre-tax price
- Net cost after PowerPair: approximately $29,000
The sales and property tax exemptions add value on top. Net metering savings compound over the life of the system. Payback periods on well-sized systems in Wake County typically fall between eight and twelve years at current rates.
The federal credit: what happened
The Inflation Reduction Act originally set the residential clean energy credit at 30% through 2032. That changed. Per NC DEQ, the credit was available for property installed through December 31, 2025.
If you installed a qualifying system in 2025, you can still claim the credit on your 2025 federal tax return using Form 5695. If your system went live in 2026, it does not qualify.