As of August 2026, North Carolina’s two live solar incentives are Duke Energy’s PowerPair pilot, a one-time incentive of up to $9,000 for pairing solar with a battery where capacity remains, and a state property-tax exclusion that shields 80% of a system’s added value. There is no current state income-tax credit, and the 30% federal credit ended after 2025.
If you are pricing solar in North Carolina in 2026, the incentive picture is short but real. The headline is Duke Energy’s PowerPair pilot, which pays a one-time incentive of up to $9,000 for installing solar together with a home battery, and the durable one is a state property-tax exclusion that keeps 80% of your system’s value off your tax bill. What North Carolina does not have is just as important: no SREC market, no state solar income-tax credit, no dedicated sales-tax exemption, and no more 30% federal homeowner credit, which ended after December 31, 2025. This page breaks down each incentive, what it actually pays, and exactly what to verify before you count on it. For the broader picture, start with our North Carolina solar guide. Updated for 2026.
North Carolina solar incentives at a glance (2026)
North Carolina has two live solar incentives in 2026 and a few notable gaps. Here is the full stack of what a homeowner can and cannot claim. Every row is dated and linked to its source, because these programs move, and a capped pilot can close between the day you read this and the day you sign.
| Incentive | What it pays | 2026 status to verify |
|---|---|---|
| Duke PowerPair (solar + battery) | A one-time incentive of up to $9,000 for pairing home solar with a battery | A capacity-capped pilot. Duke Energy Progress reached its cap in late 2025; Duke Energy Carolinas still had room in mid-2026. Confirm availability with Duke |
| Property-tax exclusion | Excludes 80% of a residential solar system’s value from property tax | A standing North Carolina law; your added home value is largely shielded from higher property taxes |
| State income-tax credit | None for homeowners | The old 35% state credit expired for systems placed in service after December 31, 2015; there is no current state credit |
| Sales-tax exemption | None specific to solar | North Carolina has no dedicated residential solar sales-tax exemption in 2026; equipment is generally taxable. Verify current rules with the NC Department of Revenue |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025; a 2026 buyer cannot claim it |
| Source | DSIRE, Duke Energy PowerPair; DSIRE, NC property-tax abatement | |
Duke PowerPair: the up-to-$9,000 solar-plus-battery incentive
Duke PowerPair pays a one-time incentive of up to $9,000 for pairing home solar with a battery. It is North Carolina’s biggest solar incentive in 2026 and the only one that puts real cash toward your install. It is a Duke Energy pilot for homeowners who install rooftop solar together with a qualifying home battery (Duke Energy, announced April 2024; program terms via DSIRE). The incentive is tied to your system size and battery capacity, so most homeowners land below the $9,000 ceiling, and it requires enrolling on a specific net-metering rider. It is available only to Duke customers, so if you are served by Dominion, a co-op, or a city utility, PowerPair is not on your table.
The catch is the cap. PowerPair is a capacity-limited pilot split between Duke’s two North Carolina operating companies, and it fills first-come. Which Duke company serves you decides whether there is room left, so pin that down first.
| Duke operating company | Where it serves | PowerPair status to verify (mid-2026) |
|---|---|---|
| Duke Energy Carolinas (DEC) | Charlotte, the Triad, and the western Piedmont | Still had enrollment capacity as of mid-2026; confirm the current opening before you build it into your budget |
| Duke Energy Progress (DEP) | Raleigh, much of central and eastern North Carolina, and the coast | Reached its enrollment cap in late 2025 and moved new applicants to a waitlist; check whether it has reopened |
| Source | DSIRE, Duke Energy PowerPair; confirm current terms with Duke Energy | |
Because that status can flip at any time, confirm the current PowerPair opening for your specific Duke territory before you commit. Verify which Duke company serves you and its current PowerPair status through our Duke Energy North Carolina solar guide.
According to MySolarFY’s analysis (August 2026), a typical 7.6 kW system in Charlotte produces about 10,759 kWh a year (modeled with NREL’s PVWatts calculator, v8), which offsets roughly $1,620 of grid power a year at North Carolina’s current 15.09 cents per kWh (EIA, May 2026). Against a paired solar-plus-battery project, Duke’s PowerPair incentive of up to $9,000 can cover a meaningful slice of the up-front cost. Your own output depends on roof pitch, orientation, and shade, so run your address through PVWatts for a tighter number.
The North Carolina solar property-tax exclusion (80%)
This is the incentive every North Carolina homeowner keeps, no cap and no waitlist. North Carolina law excludes 80% of the appraised value of a residential solar electric system from your property-tax assessment (DSIRE, North Carolina property-tax abatement). Rooftop solar reliably raises a home’s value, and normally a higher home value means a higher property-tax bill. This exclusion means adding panels does not swing your taxes the way a comparable home addition would. It applies automatically under state law rather than through a competitive program, so there is nothing to race for, though you should confirm how your county assessor applies it. It is the quiet reason North Carolina’s shorter incentive stack still pencils out for many owners.
What North Carolina does not offer: sales tax and a state credit
Two incentives you will see in other states are missing in North Carolina, and it is worth being clear-eyed about them so an installer’s rosy math does not surprise you.
No state solar income-tax credit. North Carolina once ran a generous 35% renewable-energy tax credit, but it expired for systems placed in service after December 31, 2015, and the state has not replaced it (DSIRE). A 2026 buyer cannot claim a North Carolina state credit. The property-tax exclusion above is the state’s main tax benefit for homeowners.
No dedicated solar sales-tax exemption. Unlike states such as New York or Florida, North Carolina does not currently offer a residential solar sales-tax exemption, so solar equipment is generally subject to standard state and local sales tax. Sales-tax treatment has shifted over the years, so verify the current rule with the North Carolina Department of Revenue rather than assuming an exemption applies.
The federal credit ended after 2025. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a North Carolina homeowner buying with cash or a loan in 2026 cannot claim it (IRS). A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the company that owns the panels claims it, not you. Always confirm your own situation with a licensed tax professional. MySolarFY does not provide tax advice.
See which solar programs are available in your ZIP code
Incentives, PowerPair availability, and net-metering riders change by utility and location. Enter your ZIP and we’ll match you with licensed installers who serve your area.
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MySolarFY is a free matching service, not an installer. Some homeowners may qualify for no-up-front-cost lease or PPA options where available; those plans can carry an annual escalator, so total payments may exceed the cost of paying cash, and the federal tax credit ended after December 31, 2025, so a 2026 buyer cannot claim it. Confirm all terms with your installer.
How the incentives change your solar math
North Carolina’s incentives reward one specific setup: owning your system and pairing it with a battery. If you own through cash or a loan and add storage, PowerPair puts money back and the property-tax exclusion protects your home value, while you keep the bill savings. If you lease or sign a PPA, the third-party company that owns the panels keeps any ownership-based incentive, including PowerPair, and you get a lower or fixed power price with no up-front cost instead. Note that incentives are separate from how your utility credits the power you export. Duke retired full-retail net metering for new solar in 2023, so read how net metering credits your solar exports next, and for the full price-per-watt and payback picture see our North Carolina solar cost and payback guide. The 30% federal credit ended after December 31, 2025, and our guide explains what that change means for homeowners, and to compare other states browse our solar by state guides.
Frequently asked questions
What solar incentives does North Carolina offer in 2026? Two are live. Duke Energy’s PowerPair pilot pays a one-time incentive of up to $9,000 for pairing solar with a battery where capacity remains, and a state property-tax exclusion shields 80% of a residential system’s value from property tax. North Carolina has no SREC market, no state solar income-tax credit, and no dedicated solar sales-tax exemption. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a 2026 homeowner buyer cannot claim it. Confirm each program’s current status before you decide.
Is the Duke PowerPair program still open in 2026? It depends on your Duke territory. PowerPair is a capped, first-come pilot. As of mid-2026, the Duke Energy Progress side had reached its enrollment cap and was waitlisting applicants, while the Duke Energy Carolinas side still had capacity. Availability changes, so confirm the current status for your specific Duke operating company before you plan around the up-to-$9,000 incentive.
Does North Carolina have a state solar tax credit? No. North Carolina’s 35% state solar tax credit expired for systems placed in service after December 31, 2015, and there is no current residential state solar income-tax credit. The state’s main tax benefit for homeowners is the property-tax exclusion, which keeps 80% of the system’s value off your property-tax assessment.
Is solar equipment exempt from sales tax in North Carolina? Not through a dedicated solar exemption. As of 2026 North Carolina does not offer a residential solar sales-tax exemption, so equipment is generally subject to standard state and local sales tax. Because this treatment has changed over the years, verify the current rule with the North Carolina Department of Revenue before assuming an exemption.
What happened to the 30% federal solar tax credit for North Carolina buyers? The federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a North Carolina homeowner buying with cash or a loan in 2026 cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the company that owns the panels claims it, not you. Confirm your own situation with a licensed tax professional.
Do I still get incentives if I lease or sign a PPA? It depends on the incentive. On a lease or PPA, the third-party company owns the system, so it keeps ownership-based incentives, including any PowerPair incentive. What you get instead is a lower or fixed power price with no up-front cost. The property-tax exclusion follows the system rather than you, and net-metering bill credits still reduce your usage charges either way.
