Solar Calculator for North Carolina: Costs, Incentives & ROI

North Carolina's residential solar market operates under a policy framework shaped significantly by House Bill 589 — the Competitive Energy Solutions for North Carolina Act — signed into law in 2017 and administered through successive North Carolina Utilities Commission proceedings. HB 589 established a grandfathering arrangement that allows customers who interconnected before a utility-specific deadline (generally the end of 2026 under NCUC Docket E-7 Sub 1213 for Duke Energy Carolinas and Docket E-2 Sub 1219 for Duke Energy Progress) to retain full retail-rate net metering for the legacy duration of their interconnection agreement, while new applications after that cutoff transition to net billing at the avoided-cost rate — approximately three cents per kilowatt-hour — a rate far below the retail electricity price. This policy timeline creates a meaningful incentive for North Carolina homeowners who are solar-ready to act before the grandfathering window closes: customers who interconnect under the existing net metering tariff lock in full retail-rate compensation for exported solar generation, substantially improving system economics compared to the avoided-cost rate available to future applicants. Duke Energy Carolinas serves the Charlotte metropolitan area, western North Carolina including Asheville, and extends into the Piedmont Triad, while Duke Energy Progress serves Raleigh-Durham, the Research Triangle, Wilmington, and eastern North Carolina — together the two Duke Energy utilities cover the vast majority of investor-owned residential customers in the state. Dominion Energy North Carolina serves the northeastern corner of the state. North Carolina's property tax treatment of solar is unique among its neighbors: N.C. Gen. Stat. § 105-275(45) grants an eighty-percent exemption — meaning only twenty percent of a solar system's assessed value is subject to local property tax, rather than the full exemption available in neighboring Virginia and South Carolina. The federal Investment Tax Credit of thirty percent applies statewide. North Carolina does not exempt solar equipment from its state sales tax of four and three-quarters percent plus applicable local additions, a distinction from neighboring states that homeowners should factor into their total installed cost calculations.

Incentive data updated: May 2026(may be outdated)

Average Solar Cost in North Carolina

Average installed solar costs in North Carolina range from approximately two dollars and eighty-five cents per watt before incentives, reflecting the state's competitive installer market anchored by the Charlotte and Raleigh-Durham metropolitan areas. A standard six-kilowatt residential system costs between sixteen thousand five hundred and eighteen thousand five hundred dollars before the federal Investment Tax Credit, with the thirty-percent ITC reducing the net installed cost to approximately eleven thousand five hundred fifty to twelve thousand nine hundred fifty dollars. North Carolina's eighty-percent property tax exemption under N.C. Gen. Stat. § 105-275(45) means that the assessed value increment attributable to a solar installation is reduced by eighty percent for property tax purposes — so a system that adds eighteen thousand dollars in appraised home value would have only three thousand six hundred dollars of that increment subject to local property tax assessment. This exemption applies statewide and does not require a local opt-in application, providing meaningful cumulative savings over the twenty-five-year system life, particularly in counties with higher property tax mill rates. Unlike neighboring Virginia and South Carolina, which offer full property tax exemptions, North Carolina's partial exemption reflects a legislative compromise that still provides substantial tax relief while maintaining a portion of assessed value. Solar equipment — panels, inverters, racking, and installation labor — is NOT exempt from North Carolina's state sales tax of four and three-quarters percent plus any applicable county and municipal additions, meaning homeowners pay sales tax on the full installed system cost before incentives. Homeowners considering the current net metering grandfathering window should consult with installers about NCUC interconnection queue timing, as approval timelines vary by Duke Energy Carolinas and Duke Energy Progress territory.

Avg. installed cost
$2.85/W
Typical 6 kW system
$16,500–$18,500

Top Solar Incentives in North Carolina

Live incentive data not currently available for North Carolina. See the federal incentive guidance via our Solar Tax Credit Calculator.

Electricity Rates in North Carolina

North Carolina residential electricity rates average approximately thirteen cents per kilowatt-hour on a blended basis across the state's investor-owned utility territories. Duke Energy Carolinas customers in the Charlotte metropolitan area and Piedmont region typically pay rates in the twelve to fifteen cent range, with tiered rate structures that reward solar self-consumption during peak afternoon hours. Duke Energy Progress customers in the Raleigh-Durham Research Triangle and eastern North Carolina pay similar rates, with Time-of-Use options available for customers who shift discretionary loads to off-peak periods. Dominion Energy North Carolina customers in the northeastern portion of the state pay rates generally in the twelve to fourteen cent range. North Carolina's electricity rates are below the national average, reflecting the state's favorable mix of nuclear, hydroelectric, and natural gas generation. The moderate rate environment means solar return on investment is driven as much by NEM grandfathering status and system cost efficiency as by rate arbitrage — making the timing of interconnection applications under the HB 589 transition framework a critical factor in overall system economics.

Peak Sun Hours in North Carolina

North Carolina benefits from a strong solar resource across most of the state, with the Piedmont and coastal plain regions averaging approximately five to five and two-tenths peak sun hours per day on a south-facing tilted surface. Charlotte in the southern Piedmont and Raleigh-Durham in the Research Triangle typically average five to five and two-tenths peak sun hours per day — comparable to parts of the mid-Atlantic and well above the upper Midwest and Pacific Northwest averages. Wilmington and the coastal plain in eastern North Carolina often exceed five peak sun hours per day, while the western mountain corridor from Asheville through Boone receives somewhat lower averages of four and a half to five peak sun hours due to greater cloud cover. North Carolina's peak production months are April through September. Unlike the desert Southwest where summer heat significantly degrades panel efficiency, North Carolina's more moderate summer temperatures limit temperature-related power loss. A six-kilowatt system in the Charlotte or Raleigh metro produces approximately eight thousand to eight thousand five hundred kilowatt-hours per year — with substantially more financial value for customers grandfathered under full retail-rate net metering compared to the avoided-cost rate available under new applications.

Example ROI for a 6 kW System

Estimated annual savings
$950
Payback period
9.0 years
25-year net savings
$24,000

Run a personalized estimate with your ZIP code using the Solar ROI Calculator.

Major Cities in North Carolina

  • Charlotte28202
  • Raleigh27601
  • Greensboro27401
  • Durham27701
  • Winston-Salem27101

Common Questions About Solar in North Carolina

What is North Carolina's HB 589 NEM transition and how does it affect me?

North Carolina House Bill 589 — the Competitive Energy Solutions for North Carolina Act, signed in 2017 — established a phased transition away from traditional full retail-rate net metering toward a net billing system that compensates exported solar generation at the utility's avoided-cost rate, approximately three cents per kilowatt-hour rather than the full retail rate of approximately thirteen cents. Under the transition framework administered through NCUC Docket E-7 Sub 1213 (Duke Energy Carolinas) and Docket E-2 Sub 1219 (Duke Energy Progress), residential customers who interconnect before the utility-specific grandfathering cutoff — generally the end of 2026 for applications under the current tariff — retain full retail-rate net metering for the duration of their legacy interconnection agreement. New applications after that cutoff receive only the avoided-cost rate for exports. This timing difference substantially affects long-term system economics: a system grandfathered at retail-rate compensation earns approximately four times more per kilowatt-hour of exported generation than a system connected under the avoided-cost rate. Homeowners who are solar-ready should prioritize submitting interconnection applications to Duke Energy Carolinas or Duke Energy Progress as soon as possible. Application approval timelines vary; consult with a licensed NC installer about current queue wait times in your service territory.

How does North Carolina's 80% property tax exemption for solar work?

North Carolina General Statutes § 105-275(45) provides an eighty-percent exemption from local property tax assessment for solar energy equipment. This means that when a county tax assessor evaluates the value a solar installation adds to your home, only twenty percent of that increment is subject to property taxation — the remaining eighty percent is excluded from taxable assessed value. For example, if a solar installation adds eighteen thousand dollars of appraised value to your property, only three thousand six hundred dollars of that addition is taxable; the other fourteen thousand four hundred dollars is exempt. This is a statewide exemption that applies automatically without a local application requirement, and it persists for the operating life of the solar system. North Carolina's approach is different from neighboring Virginia and South Carolina, which exempt one hundred percent of solar-related property value increases. The eighty-percent partial exemption still provides substantial cumulative savings over a twenty-five-year system lifespan, particularly in counties with higher property tax mill rates. Note that North Carolina does NOT exempt solar equipment from state or local sales tax, so homeowners pay the four and three-quarters percent state sales tax plus applicable local additions on the full installed system cost.

Which utilities offer net metering in North Carolina?

The three primary investor-owned utilities serving North Carolina residential customers each administer net metering under the NCUC's HB 589 transition framework. Duke Energy Carolinas, operating as a subsidiary of Duke Energy Corporation, serves the Charlotte metropolitan area, western North Carolina including Asheville, and the Piedmont Triad region, and administers net metering under NCUC Docket E-7 Sub 1213. Duke Energy Progress serves Raleigh-Durham, the Research Triangle corridor, Wilmington, and eastern North Carolina under Docket E-2 Sub 1219. Dominion Energy North Carolina serves the northeastern corner of the state under separate NCUC tariff proceedings. All three utilities offer net metering for residential systems under the grandfathering window, with new applications transitioning to net billing at avoided-cost after utility-specific cutoff dates. North Carolina also has approximately twenty-six electric cooperatives serving rural areas and smaller communities, as well as ElectriCities municipal utilities — these entities have their own net metering tariffs that may differ from the Duke Energy and Dominion frameworks. Cooperative customers should contact their local electric cooperative directly for specific interconnection terms and compensation rates applicable in their service territory.

Do I need both a general contractor and electrical license for solar installation in North Carolina?

Yes. North Carolina imposes a double-license requirement for residential solar installations that is distinct from most other states. The NC Licensing Board for General Contractors (NC LBGC) requires that the installing contractor hold a current General Contractor license — either a Building license or a Residential license — to perform the structural and mounting work associated with rooftop solar installation. Separately, the NC State Board of Examiners of Electrical Contractors (NC BEEC) requires that all electrical work associated with the solar installation — including inverter wiring, AC disconnect, utility interconnection, and metering — be performed by or under the direct supervision of a licensed Electrical Contractor. These are two separate licensing authorities with separate application and verification processes. Before signing a solar contract, verify your installer holds a current NC LBGC general contractor license (searchable at nclbgc.org/license-search/) and that their electricians are licensed Electrical Contractors under the NC BEEC (searchable at ncbeec.org). NABCEP certification is an additional quality credential beyond the state licensing minimum. Requesting proof of both licenses plus at least three competitive quotes is recommended practice for North Carolina homeowners.

Best Solar Installers in North Carolina

North Carolina requires solar installation contractors to hold two separate licenses: a General Contractor license (Building or Residential category) issued by the NC Licensing Board for General Contractors (NC LBGC), and an Electrical Contractor license issued by the NC State Board of Examiners of Electrical Contractors (NC BEEC) for all electrical work including inverter wiring, AC disconnect, and utility interconnection. This double-license requirement is distinct from most other states where a single contractor license covers both structural and electrical work. Verify both licenses before signing any contract — NC LBGC license search: nclbgc.org/license-search/ and NC BEEC license search: ncbeec.org. NABCEP certification is an additional national quality indicator beyond the state minimum. Obtaining at least three competitive quotes from fully licensed installers is recommended practice in North Carolina.

Top Utility Companies in North Carolina

  • Duke Energy Carolinas

    Service area: Charlotte, Gastonia, Asheville, Hickory, Concord, western North Carolina, Piedmont Triad western portion

    Tariff: tier-2, TOU

    Residential rate: 12.0–15.0¢/kWh (as of 2026-05)

    NEM program: NC HB 589 Transitional NEM — pre-2026 applications grandfathered at retail-rate (NCUC Docket E-7 Sub 1213); new applications net billing at avoided-cost (~3¢/kWh)

  • Duke Energy Progress

    Service area: Raleigh, Durham, Chapel Hill, Wilmington, Rocky Mount, Research Triangle, eastern North Carolina

    Tariff: tier-2, TOU

    Residential rate: 12.0–15.0¢/kWh (as of 2026-05)

    NEM program: NC HB 589 Transitional NEM — pre-2026 applications grandfathered at retail-rate (NCUC Docket E-2 Sub 1219); new applications net billing at avoided-cost (~3¢/kWh)

  • Dominion Energy North Carolina

    Service area: Elizabeth City, Edenton, Ahoskie, northeastern North Carolina

    Tariff: flat

    Residential rate: 12.0–14.0¢/kWh (as of 2026-05)

    NEM program: NCUC Net Metering at avoided-cost for new applications; legacy grandfathered customers at retail-rate under existing interconnection agreements

Net Metering Policy in North Carolina

Version
NEM transition
Effective date
2017-07-27
Buyback rate
avoided-cost — 3.00¢/kWh
System size cap
1000 kW
Grandfathering
Pre-2026 NEM customers grandfathered at retail-rate for duration of legacy interconnection agreement under NCUC Docket E-7 Sub 1213 (Duke Energy Carolinas) and E-2 Sub 1219 (Duke Energy Progress); new applications after utility-specific cutoff dates receive avoided-cost net billing only

NC HB 589 (Competitive Energy Solutions for NC Act, enacted 2017-07-27) established phased transition from retail-rate NEM to net billing at avoided-cost. Customers interconnected before utility-specific cutoff dates (generally end of 2026 for Duke Energy Carolinas under Docket E-7 Sub 1213 and Duke Energy Progress under Docket E-2 Sub 1219) are grandfathered at full retail-rate net metering for their legacy interconnection term. New applications after cutoff receive approximately 3¢/kWh avoided-cost compensation — significantly below retail rate of ~13¢/kWh. Homeowners should prioritize interconnection applications before grandfathering window closes.

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Property Tax Exemption in North Carolina

Status
partial
Exemption
80%
Applies to
solar-pv

N.C. Gen. Stat. § 105-275(45) — only 20% of solar system assessed value subject to property tax; effectively an 80% exemption statewide. NC differs from neighboring VA and SC (both full 100% exemptions). Solar equipment is NOT exempt from NC 4.75% state sales tax plus applicable local additions — homeowners pay sales tax on full installed system cost.

Related Calculators

Estimates are based on average state-level data and ZIP-code-specific NREL/EIA inputs. Actual costs, incentives, and savings vary by utility, installer, equipment, and individual circumstances. This page is for informational purposes only and is not financial, tax, or legal advice. Verify current incentives with your local utility and a licensed tax professional.