NC Solar Incentives in 2026

The federal residential solar credit expired in 2025. Here's what NC homeowners should verify now: Duke Energy PowerPair, NC tax provisions, net metering, and Energy Saver NC.

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Solar installer fitting panels on a residential roof in North Carolina — solar incentives 2026

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.

The current picture: Duke Energy’s PowerPair program, NC tax provisions, updated Duke net metering riders, and Energy Saver North Carolina for certain income-eligible home upgrades.

Duke Energy PowerPair

The largest upfront incentive currently available to 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, according to Duke Energy:

  • 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
Maximum PowerPair incentive $9,000 Solar + battery installed together for the first time. Must use a Duke Energy Trade Ally installer.

The program is for eligible North Carolina residential customers of Duke Energy Progress or Duke Energy Carolinas, but it is capacity-limited. Duke reviews applications for eligibility and available capacity, so do not treat PowerPair as guaranteed until your application status is confirmed.

If you also enroll in Duke Energy’s battery control option, you may receive a monthly bill credit in exchange for allowing Duke to temporarily adjust battery operation during control events. Confirm the exact requirements and credit during enrollment.

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 treatment. Solar equipment has specific treatment under NC sales tax law. Confirm with your installer how sales tax is handled in your quote.

Property tax exclusion. NC law provides a property tax exclusion for a residential solar energy electric system under G.S. 105-275(45). Confirm how your county applies the exclusion if you are evaluating long-term ownership costs.

There’s no active NC state income tax credit for residential solar. The 35% credit that existed through 2015 was not renewed.

Duke Energy net metering

Net metering in NC changed in October 2023. Customers who installed solar before that date remain on the legacy retail-rate structure until October 1, 2027. New customers choose between two options: the Net Metering Bridge (exports credited at the avoided cost rate, well below retail) or Residential Solar Choice (a time-of-use plan with a low net excess generation rate for exports).

Under both current options, power your panels generate and your home uses directly saves at the full retail rate. The reduced rate applies only to surplus you export to the grid.

This change came from the NC Energy Solutions for North Carolina Act (HB 951, 2021), which directed the NC Utilities Commission to revise net metering rates. The NCUC issued the new structure in March 2023. For a full breakdown of how the current options work, see the NC net metering guide.

Energy Saver North Carolina

Energy Saver North Carolina is not a solar rebate, but it may matter if your project involves broader electrification. NC DEQ says income-eligible households may qualify for rebates on certain upgrades such as electrical panels, wiring, heat pumps, and insulation. Use the program’s eligibility process before assuming it applies to a solar or battery project.

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.

For the full story on what changed and why, see What happened to the federal solar tax credit?

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