Last Updated: May 19, 2026 | Reviewed by: Dylan DeSantis, SolarMetric
Quick Answer
Solar panels in North Carolina cost an average of $2.34 per watt installed in 2026, putting a typical 9kW system at roughly $21,060 before incentives. There is no federal tax credit for systems installed in 2026 — it expired December 31, 2025. Duke Energy’s PowerPair rebate (up to $9,000) is nearly at capacity. Most NC homeowners see a payback period of 9–12 years.
What Solar Costs in North Carolina Right Now
At $2.34 per watt installed, North Carolina is one of the more affordable states for solar — roughly 22% below the national average of $3.00/W. That cost advantage comes from high installer competition, strong regional demand, and years of familiarity among local contractors with Duke Energy’s interconnection process.
What’s changed heading into 2026: the 30% federal Residential Clean Energy Credit (Section 25D) expired for new installations after December 31, 2025. The credit was eliminated under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). If you installed before that date, you can still claim the credit on IRS Form 5695 — see our federal solar tax credit guide for details. If you’re starting the installation process in 2026, there is no federal credit to offset your cost.
That changes the math significantly. A system that would have cost roughly $14,742 after the ITC in 2025 costs the full $21,060 in 2026. Payback periods that ran 6–8 years now run 9–12. The economics are still positive for most homeowners in the Piedmont and coastal regions — but the numbers are simply different, and anyone using pre-2026 estimates needs to recalculate.
Average System Cost by Size — North Carolina (2026)
| System Size | Estimated Cost | Covers Monthly Bill (Approx.) |
|---|---|---|
| 5 kW | $11,700 | ~$80–100/month |
| 7 kW | $16,380 | �$110–130/month |
| 9 kW | $21,060 | �$140–170/month |
| 11 kW | $25,740 | ~$175–215/month |
| 13 kW | $30,420 | ~$215–260/month |
Based on NC average of $2.34/W installed. Final quotes vary ±15% by roof type, panel brand, and installer.
See our solar panel cost guide for national comparisons and cost-per-watt benchmarks across all system sizes.
North Carolina Solar Incentives (2026)
Federal Tax Credit: Expired for 2026 Installs
The 30% Residential Clean Energy Credit (Section 25D) expired December 31, 2025 for new installations. Systems installed in 2026 do not qualify. If you installed in 2025 and have not yet filed your return, claim the credit using IRS Form 5695.
Duke Energy PowerPair Rebate — Up to $9,000
This is the most significant financial incentive available to NC solar buyers in 2026. Duke Energy’s PowerPair program provides a one-time rebate to homeowners who install both solar and battery storage:
| Component | Rebate Rate | Maximum |
|---|---|---|
| Solar (per watt-AC) | $0.36/W-AC | $3,600 (up to 10 kW AC) |
| Battery (per kWh) | $400/kWh | $5,400 (up to 13.5 kWh) |
| Combined maximum | — | $9,000 |
Availability as of May 2026:
– Duke Energy Progress territory: Fully allocated. Waitlist only.
– Duke Energy Carolinas territory: Near capacity; Cohort B waitlisted as of April 28, 2026.
To qualify, you must install a battery alongside the solar system — the rebate does not apply to solar-only installations. Your installer must be a registered Duke Energy PowerPair participant.
Property Tax Exemption — 100%
North Carolina exempts the full added value of a solar energy system from property tax assessment. A $21,000 system does not increase your property tax bill by a single dollar.
Sales Tax Exemption
Solar energy equipment is exempt from North Carolina’s state sales tax, saving roughly 4.75–7.5% on the cost of panels and hardware.
No State Income Tax Credit
North Carolina had a state solar income tax credit until 2016. It is no longer available.
Net Metering in North Carolina: A Critical 2026 Deadline
If you’re a Duke Energy customer — which covers most of the state — your net metering situation depends heavily on when you install.
| Rate Program | Export Credit | Available Through |
|---|---|---|
| Bridge Rate (Rider NMB) | Near-retail credits | December 31, 2026 |
| Solar Choice Rider (post-deadline) | ~$0.034/kWh (avoided cost) | After Dec 31, 2026 |
Customers who enroll in the Bridge Rate by December 31, 2026 can remain on it for up to 15 years. After that date, new solar customers default to the Solar Choice Rider, which pays export credits at Duke’s avoided cost rate — approximately $0.034/kWh versus a retail rate of roughly $0.14/kWh. That’s a 75% reduction in the value of electricity you send back to the grid.
For many homeowners, locking in the Bridge Rate before year-end represents $2,000–$4,000 in cumulative additional savings over a 15-year enrollment period compared to the post-deadline avoided cost rate.
Dominion Energy customers in northeastern North Carolina retain traditional 1:1 net metering, with excess solar generation credited at the full retail rate indefinitely.
How to Claim the Duke Energy PowerPair Rebate
- Verify your Duke Energy service territory. Check duke-energy.com or call Duke directly. Duke Energy Progress territory is now on a waitlist; Duke Energy Carolinas capacity is nearly exhausted as of May 2026.
- Choose an approved PowerPair installer. Not every solar company is registered. Before signing any contract, ask explicitly whether the installer is a certified Duke Energy PowerPair participant.
- Get quotes that include battery storage. The full rebate requires both solar and a qualifying battery (such as a Tesla Powerwall or Enphase IQ Battery). Solar-only systems qualify only for the solar rebate portion.
- Submit your PowerPair application before installation begins. The rebate allocation is reserved at application approval, not at install date. Apply as early as possible given current capacity constraints.
- Complete installation. Installation typically takes 1–3 days for a residential system once permits are pulled.
- Receive your rebate after inspection. After Duke Energy completes the interconnection inspection, the rebate is paid directly to you.
City-by-City Solar Estimates — North Carolina
The worked examples below use location-specific peak sun hours from NREL PVWatts data. Monthly savings are calculated using: system kW × peak sun hours × 30 days × 0.80 efficiency factor × $0.14/kWh (NC average electricity rate).
| City | Monthly Bill | System Size | System Cost | Monthly Savings | Payback (No Incentives) |
|---|---|---|---|---|---|
| Charlotte | $120 | 6.0 kW | $14,040 | $120 | 9.8 yrs |
| Raleigh | $150 | 7.6 kW | $17,784 | $150 | 9.9 yrs |
| Wilmington | $130 | 7.3 kW | $17,082 | $130 | 11.0 yrs |
| Asheville | $100 | 6.2 kW | $14,508 | $100 | 12.1 yrs |
| Fayetteville | $140 | 7.6 kW | $17,784 | $141 | 10.5 yrs |
Peak sun hours used: Charlotte 5.93 PSH; Raleigh 5.87 PSH (both NREL PVWatts verified); Wilmington 5.30 PSH; Asheville 4.80 PSH; Fayetteville 5.50 PSH (last three estimated from regional NREL station data).
Methodology: System size (kW) = monthly bill ÷ $0.14/kWh ÷ 30 days ÷ PSH × 1.25. System cost = system size in watts × $2.34/W. Monthly savings = system kW × PSH × 30 × 0.80 × $0.14. Payback = system cost ÷ annual savings. Savings estimates assume Bridge Rate or near-retail net metering credits on exported generation.
Asheville’s longer payback reflects the Blue Ridge Mountains’ lower solar irradiance — the mountain region averages significantly more cloud cover than the Piedmont or coast. Western NC homeowners should get site-specific quotes accounting for roof orientation, shading, and local weather patterns.
Top Solar Companies in North Carolina (2026)
Local installers generally know Duke Energy’s interconnection process better, respond faster, and are more likely to be registered PowerPair participants. That said, national companies offer competitive pricing and flexible financing options — including leases and PPAs — that local shops typically don’t.
| Company | Type | Best For | Website |
|---|---|---|---|
| 8MSolar | Local | Overall quality; Triangle & Piedmont; NABCEP certified | 8msolar.com |
| NC Solar Now | Local | PowerPair expertise; Triangle area; est. 2009 | ncsolarnow.com |
| Yes Solar Solutions | Local | Only NABCEP Company-accredited NC installer; Cary area | yessolarsolutions.com |
| Palmetto | National | Tech-forward platform; multiple financing options; HQ in Charlotte | palmetto.com |
| Sunrun | National | Lease/PPA options; $0 down; strong financing flexibility | sunrun.com |
Get at least three quotes. NC homeowners who compare three or more bids save an average of $5,000 on installation, according to EnergySage marketplace data. Pricing variation between installers on the same system can exceed $4,000.
See our best solar companies guide for national rankings, warranty comparisons, and detailed reviews.
Is Solar Worth It in North Carolina in 2026?
Verdict: Yes — especially if you act before December 31, 2026.
Without the federal ITC, solar in NC carries a longer payback than it did in prior years. But the 25-year math still works clearly for most homeowners. A $17,784 system (7.6kW in Raleigh) saving $1,800/year pays back in 9.9 years, leaving 15+ years of net profit before a standard 25-year panel warranty expires. Over 25 years, that same system generates roughly $27,200 in net savings.
The strongest argument for going solar in NC right now is the Bridge Rate deadline. Duke Energy customers who install by December 31, 2026 lock in near-retail export credits for up to 15 years. After that date, exports earn roughly $0.034/kWh — 75% below retail. The difference in lifetime savings between enrolling before versus after the deadline can equal or exceed $3,000.
Solar makes the most sense in NC if:
– You’re a Duke Energy customer who can lock in the Bridge Rate before year-end
– You qualify for the PowerPair rebate (by adding battery storage)
– Your monthly electricity bill is above $120
– Your roof faces south or southwest with minimal shade
– You’re in the Piedmont or coastal region
Solar is harder to justify if:
– Your bill is below $80/month
– You have a heavily shaded or north-facing roof
– You plan to move within 5 years
– You’re in the Asheville area with the mountains’ lower sun hours and longer paybacks
For a full national comparison, see our is solar worth it guide.
Frequently Asked Questions
Is there a solar tax credit in North Carolina in 2026?
No state solar tax credit exists in North Carolina — the state program ended in 2016. The federal 30% Residential Clean Energy Credit also expired December 31, 2025. Systems installed in 2025 can still claim it on that year’s tax return. The main 2026 incentives are Duke Energy’s PowerPair rebate and the property tax exemption.
How much does a 9kW solar system cost in NC after incentives?
A 9kW system costs about $21,060 before incentives. With the PowerPair solar rebate ($3,600), effective cost drops to roughly $17,460 if you also install a qualifying battery. There is no federal tax credit for 2026 installs. Without PowerPair — or if program capacity is exhausted — the full $21,060 applies.
What is the average solar payback period in North Carolina?
The average payback period in NC is 9–12 years in 2026, depending on location, system size, and whether you qualify for Duke Energy’s PowerPair rebate. Without any incentives, a typical Piedmont-area system pays back in about 10 years. Asheville’s lower sun hours push payback closer to 12 years.
Will Duke Energy pay me for the solar I send to the grid?
Duke Energy pays for excess solar generation at near-retail rates if you enroll by December 31, 2026 under the Bridge Rate (Rider NMB), which can last up to 15 years. After that deadline, new customers earn only ~$0.034/kWh — the avoided cost rate, roughly 75% below retail. Dominion Energy customers retain full 1:1 net metering.
What size solar system does a North Carolina home need?
Most NC homes need a 7–10kW system. Divide your monthly electricity bill by $0.14 (average NC kWh rate), then by 30 days, then by 5.25 (statewide average peak sun hours), and multiply by 1.25 to estimate your system size in kW. A $150/month bill in Raleigh (5.87 PSH) works out to about 7.6kW.
Sources
- EnergySage NC Solar Market Data — energysage.com/local-data/solar-panel-cost/nc/ — average cost per watt, NC installer market data (2026)
- OhmSnap NC Solar Cost — ohmsnap.com/solar-cost/north-carolina — $2.34/W average confirmed (2026)
- NREL PVWatts v8 — pvwatts.nrel.gov — peak sun hours by city (Charlotte 5.93 PSH, Raleigh 5.87 PSH)
- EIA North Carolina Electricity Profile — eia.gov/electricity/state/northcarolina/ — residential electricity rates
- IRS FAQs: One Big Beautiful Bill Act — irs.gov — Section 25D expiration
- Duke Energy PowerPair via DSIRE — programs.dsireusa.org — rebate amounts and capacity status
- Duke Energy net metering — Bridge Rate (Rider NMB) terms, avoided cost rate ~$0.034/kWh
How We Researched This
SolarMetric compiled North Carolina cost estimates using installer pricing data from EnergySage’s 2026 marketplace reports and OhmSnap’s verified 2026 installer data. Peak sun hours are sourced from NREL’s PVWatts v8 database. Electricity rates reflect EIA residential data for North Carolina as of 2025/early 2026 (~$0.14/kWh). Net metering policy details are sourced from DSIRE and Duke Energy regulatory filings. Incentive availability was verified as of May 19, 2026.