North Carolina residential power runs about 15.09 cents per kWh, below the national average of roughly 18.4 cents, so solar here pays off through strong Carolina sun and state incentives more than through sky-high rates. Duke Energy’s old 1:1 retail net metering closed to new solar in 2023, and new customers now pick a bridge or a time-of-use rate, so the export credit you earn depends on which one you choose.
North Carolina is the largest residential solar market in the Southeast, and for good reason: plenty of sun, a deep installer base, and a property-tax break that keeps a system from raising your tax bill. The catch is that the money math changed. Duke Energy, which powers most of the state, retired the old full-retail net metering for new customers in 2023, and the federal homeowner tax credit ended after 2025. This page lays out what North Carolina solar actually costs in 2026, how the new Duke net-metering rules credit your exports, which incentives are still live, and how to tell if your roof is a good fit. Every figure here is dated and linked to its source, because these programs change. Updated for 2026.
What solar costs in North Carolina in 2026
North Carolina’s power prices sit below the national average, which is the honest starting point. At about 15.09 cents per kWh for residential customers (EIA Electric Power Monthly, Table 5.6.A, as of May 2026, national average about 18.4 cents), the bill solar offsets is smaller than in the high-rate Northeast. What tips the math in North Carolina’s favor is sunshine: the state gets strong solar resource, so a right-sized system produces a lot of kilowatt-hours per dollar of panel.
According to MySolarFY’s analysis (August 2026), a typical 6 kW system in the Raleigh area produces about 8,275 kWh a year (modeled with NREL’s PVWatts calculator, v8, standard assumptions), which offsets roughly $1,250 of grid power a year at North Carolina’s current 15.09 cents per kWh. Your own output depends on roof pitch, orientation, and shade from those tall Carolina pines, so treat this as a planning estimate and run your own address through PVWatts for a tighter number. For the full cost-per-watt and payback breakdown by system size, see our North Carolina solar cost and payback guide. For the full data set behind these figures, see our North Carolina solar data and statistics. To see how the bill credit itself works, read how net metering credits your solar exports.
Net metering in North Carolina: the Duke bridge rate and time-of-use
The big change: full-retail 1:1 net metering is gone for new solar customers. Duke Energy’s legacy Rider NM, which credited every exported kilowatt-hour at the full retail rate, closed to new residential solar on September 30, 2023 (DSIRE, North Carolina net metering). New customers now choose between two riders, and the one you pick decides what your exports are worth. Verify the current terms and any capacity limits with Duke before you sign.
| Duke rider (new solar) | How it credits you | The catch to verify |
|---|---|---|
| Rider NMB (Net Metering Bridge) | Simple monthly netting, no time-of-use requirement, a set stay period | A transitional option that is capacity-capped and time-limited, so confirm it is still open |
| Rider RSC (Residential Solar Choice) | Time-of-use pricing with critical peak periods; exports credited near Duke’s avoided-cost rate, not full retail | Adds a minimum monthly bill and non-bypassable charges, so shifting usage to off-peak matters |
| Source | DSIRE, North Carolina net metering; confirm current tariff terms with Duke Energy | |
What this means for you: the bridge rate (Rider NMB) is the friendlier option because it keeps simple monthly netting, while Residential Solar Choice (Rider RSC) shifts you to time-of-use and credits exports below retail. Because the bridge rider is capacity-limited and time-bound, its availability is exactly the kind of thing to verify with Duke before you commit. Either way, sizing a system to your own usage matters more than it used to, since over-exporting no longer earns full retail. For how the credit lowers your monthly cost, see how solar lowers your electricity bill. For the full breakdown of Duke’s net metering, the PowerPair battery rebate, and interconnection, see our Duke Energy North Carolina solar guide. For a deeper walkthrough of how the bridge rate, time-of-use exports, and Dominion Energy North Carolina compare, see our North Carolina net metering guide for 2026.
North Carolina solar incentives in 2026 (including Duke PowerPair)
North Carolina does not run an SREC market or a state income-tax credit, so its incentive stack is shorter than Maryland’s or New Jersey’s. What it does have is a strong property-tax exemption and a utility solar-plus-battery rebate. Here is what is live in 2026.
| 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; the Duke Energy Progress territory filled its cap in late 2025, while Duke Energy Carolinas still had room in mid-2026. Confirm current availability with Duke |
| Property-tax exemption | 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 | North Carolina’s old 35% credit expired for systems placed in service after December 31, 2015; there is no current state credit |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025; a 2026 buyer cannot claim it |
The headline incentive is Duke PowerPair. Duke’s PowerPair pilot pays a one-time incentive of up to $9,000 to homeowners who install solar together with a battery (Duke Energy, announced April 2024). It is a capped pilot, so it is first-come: the Duke Energy Progress side reached its enrollment cap in late 2025 and moved new applicants to a waitlist, while the Duke Energy Carolinas side still had capacity as of mid-2026. Because that status moves, confirm current PowerPair availability for your Duke territory before you count on it. For a full breakdown of every North Carolina incentive, including PowerPair eligibility and the property-tax exclusion, see our North Carolina solar incentives 2026 guide.
The property-tax exemption is the durable one. North Carolina excludes 80% of a residential solar electric system’s value from your property-tax assessment, so adding panels does not swing your tax bill the way a home addition would (DSIRE, North Carolina property-tax abatement). North Carolina’s sales-tax treatment of residential solar equipment has shifted over the years, so verify the current rule with the North Carolina Department of Revenue rather than assuming an exemption. And North Carolina has no general residential solar income-tax credit today, since the old 35% state credit expired after 2015.
Heads up on the federal credit: 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.
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Which utility serves you, and why it matters
In North Carolina, your utility decides your net-metering rider and whether PowerPair is even on the table, so it is the first thing to pin down.
| Utility | Where it serves |
|---|---|
| Duke Energy Carolinas (DEC) | The Piedmont and western NC, including Charlotte, Greensboro and Winston-Salem in the Triad, and most of Durham, plus Asheville to the west |
| Duke Energy Progress (DEP) | Much of central and eastern NC, including Raleigh, Fayetteville, and Wilmington on the coast |
| Dominion Energy North Carolina | The northeastern corner of the state |
| Co-ops and city utilities | Electric membership co-ops and municipal systems serve many rural and town areas, each with its own solar rules |
Between the two Duke operating companies, Duke Energy is the dominant electric utility in North Carolina, so most homeowners reading this are on either DEC or DEP. The net-metering riders above are Duke’s; if you are served by Dominion Energy North Carolina, a cooperative, or a city utility, your net-metering and rebate terms will differ, so check your provider directly. To pressure-test any installer’s numbers, use the right questions to ask a solar installer.
Is solar worth it in North Carolina?
For many North Carolina homeowners, yes, but the case rests on production and the property-tax break more than on a rich incentive stack. With below-average power prices, the payback here is driven by strong sun, a system sized to your own use under the new Duke riders, and keeping your added home value out of your property-tax bill. If you own the system through cash or a loan, you keep those benefits directly; if you lease or sign a PPA, the company that owns the panels keeps any tax benefits while you get a lower or fixed power price with no up-front cost. For a full payback walkthrough, see the financial case for whether solar panels are worth it, and for the broader picture, browse our solar by state guides.
How to choose an installer: screen any North Carolina company against objective criteria rather than a “best” list. Look for NABCEP certification, a valid North Carolina electrical license, a written workmanship and equipment warranty, real local experience with Duke’s interconnection and rider paperwork, and a clear production estimate you can compare. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. Keep in mind the 30% federal Residential Clean Energy Credit ended for expenditures made after December 31, 2025, so a 2026 cash or loan buyer cannot claim it; for the full timeline, read what the federal solar tax credit change means for homeowners.
Frequently asked questions
What solar incentives does North Carolina offer in 2026? North Carolina’s durable benefit is a property-tax exemption that excludes 80% of a residential solar system’s value from your assessment, plus Duke Energy’s PowerPair pilot, which pays a one-time incentive of up to $9,000 for pairing solar with a battery where capacity remains. North Carolina has no SREC market and no state solar income-tax credit today. 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 net metering still available in North Carolina? Yes, but not the old full-retail version for new customers. Duke Energy’s legacy 1:1 net metering (Rider NM) closed to new residential solar on September 30, 2023. New customers choose between Rider NMB, a transitional bridge option with simple monthly netting, and Rider RSC (Residential Solar Choice), a time-of-use rate that credits exports near Duke’s avoided-cost rate rather than full retail and adds a minimum monthly bill. Because the bridge option is capacity-capped, verify current availability with Duke.
What is the Duke PowerPair program and is it still open? PowerPair is a Duke Energy pilot that pays a one-time incentive of up to $9,000 to homeowners who install solar paired with a battery. It is a capped, first-come pilot: the Duke Energy Progress territory reached its enrollment cap in late 2025 and began waitlisting applicants, while Duke Energy Carolinas still had capacity as of mid-2026. Availability changes, so confirm the current status for your Duke territory before planning around it.
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 general residential state solar income-tax credit today. The state’s main tax benefit for homeowners is the property-tax exemption, which excludes 80% of the system’s value from your property-tax assessment. The federal Residential Clean Energy Credit (Section 25D) separately ended after December 31, 2025.
How much does solar produce in North Carolina? Production depends on your roof and location, but as a benchmark, MySolarFY’s analysis (August 2026) models a typical 6 kW system in the Raleigh area at about 8,275 kWh a year using NREL’s PVWatts calculator, which offsets roughly $1,250 of grid power at North Carolina’s current 15.09 cents per kWh. Roof pitch, orientation, and shade from tall pines all move that number, so run your own address through PVWatts for a tighter estimate.
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 the tax benefits, including any PowerPair incentive tied to ownership. What you get instead is a lower or fixed power price with no up-front cost. Net-metering bill credits still reduce your usage charges either way. If capturing the tax and rebate value matters to you, owning the system through cash or a loan is the path that keeps it.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL PVWatts, Duke Energy, DSIRE, and IRS sources as of August 2026; incentive amounts, program capacity, and net-metering rider terms change, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the tax benefits and any utility rebate go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
