North Carolina has more solar installed than only three other state: California, Texas, and Florida. With enough solar panels to power more than one million homes, it seems clear that solar can be worth it in the Tar Heel State. It also happens to be Palmetto's home.
Of course, North Carolina is a big state and you might wonder if what's true for the Outer Banks also applies to Asheville. How do you actually know if solar panels are a fit for your home? And how do you find the best solar company to install them for you? We’ll answer all that and more below.
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Does Solar Make Sense in North Carolina?
Given the sheer number of solar panels already installed in the state, it’s clear that solar can make sense. Whether or not they make sense for you depends on a number of factors.
Price of electricity
Per the US Energy Information Administration, North Carolina’s average electricity rate in 2023 was 12.93 cents per kilowatt-hour. That’s slightly below the national average of 16 cents/kWh. Your actual average cost depends on your utility's rate and whether it varies throughout the year or day, like with a time-of-use rate.
The price you pay for electricity can impact how much solar can save you. In general, the higher the cost of electricity, the more you could save. How much electricity you use is another important factor.
Price of solar
There are plenty of reasons to install solar panels, but overall electric bill savings continue to motivate many. Those savings won’t mean anything if your solar panels are so expensive that you never recoup the cost. Luckily, solar panel installations have continued to drop in price and hover near all-time lows.
It’s hard to say what solar panels will cost without getting a quote from a reputable solar company, but one national average puts the cost at $3.24 per watt of installed solar capacity. At that price a six kilowatt system would cost $19,440 before incentives.
The cost of your system will ultimately depend on its size, the complexity of your roof, local costs of labor and permitting, and what incentives you qualify for.
Available sunlight
Since solar panels need sunlight to generate electricity, the amount of sunlight your roof gets is a key consideration. North Carolina averages 4.25-5 peak sun hours per day throughout the year, according to the National Renewable Energy Laboratory.
More important than the statewide average is how much sun your roof gets. Any North Carolina solar company worth its salt will conduct a survey, either in person or remotely, to make sure your roof is a good fit for solar panels.
Outages
Solar panels paired with a battery can provide some backup through a power outage. How much of your home your battery can power and for how long depends on the size of your battery, how much sun your panels get to recharge it, and the length of the outage.
According to the EIA, utility customers in North Carolina experienced just over four hours of outages (some may have had more, some none at all).
Solar may make sense for you if a power outage is more than just an inconvenience.
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Solar Incentives in North Carolina
The cost of solar continues to drop, but the total cost can still be significant. Luckily, incentives can reduce what you pay or increase what you save.
Federal tax credit
The federal solar tax credit, properly known as the Residential Clean Energy Credit after the passage of the Inflation Reduction Act, lets the owners of eligible residential solar systems claim a tax credit worth 30% of the project's cost, including equipment, permitting, and labor. If you pay $19,440 for a solar system, you could be eligible for a credit worth $5,832. You must have a tax liability to take advantage of the credit, but you can roll over any excess to future years. There’s no dollar limit on the credit. Everyone’s tax situation is different, so consult your tax advisor about yours.
Net metering
Net metering refers to a specific way utilities credit you for the electricity you produce but don’t consume. Under 1-to-1 net metering, each kilowatt-hour you send to the grid earns you a credit worth one kilowatt-hour at the retail rate. Net metering is also used (technically inaccurately) as the umbrella term for variations on that system.
Some utilities in North Carolina still offer 1-to-1 net metering. Others offer net billing, where credits are lower than the retail rate.
North Carolina’s largest utility, Duke Energy, is moving to a Residential Solar Choice rider with a Net Metering Bridge Rider for some customers who go solar in the next few years.
If your interconnection application is filed on or after January 1, 2027, you’ll be on the Residential Solar Choice rider. Any electricity you send to the grid will count against your consumption that month at the retail rate in the same time-of-use period. Any excess credits you have will roll forward to future months at a lower rate. You’ll also have a minimum monthly bill of $22 (Duke Energy Carolinas) or $28 (Duke Energy Progress) and must be on a time-of-use plan with critical peak periods.
Before 2027, you may be able to get the Net Metering Bridge rider, which is similar to the Residential Solar Choice rider, but doesn’t require a time-of-use rate.
The Net Metering Bridger rider has an annual capacity limit for 2025 and 2026. Solar panel systems that come online after the limit is met will automatically be enrolled in the Residential Solar Choice rider.
Duke Energy PowerPair program
Duke Energy’s solar and storage incentive program, called PowerPair, launched in spring of 2024. PowerPair offers incentives to two different cohorts of people who install solar and storage.
Customers who go solar can get a one-time incentive of $0.36/watt (AC) up to 10 kW and $400/kWh for qualified battery storage up to 13.5 kWh That sets the maximum one-time incentive at $3,600 for solar and $5,400 for storage.
Customers who also enroll in the Power Manager Battery Control program can receive monthly credits based on their qualified battery. In return, Duke Energy can charge, discharge, and otherwise control your battery up to 36 times per year. During events, Duke Energy won’t discharge your battery to below 20%.
The size of the monthly bill credit depends on the battery you have installed and can range from $5 to $66, according to Duke Energy’s website.
Solar renewable energy credits
North Carolina does not have a solar renewable energy credit (SREC) market.
Property tax exemption
North Carolina does have a property tax exemption for solar panel systems. Since solar panels often raise property values, they can lead to higher property taxes. Not in North Carolina. Even if solar panels increase the value of your home, you won’t pay more in taxes.
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Solar Payback Period in North Carolina
There are plenty of reasons to go solar, but the most common motivation is saving money. A solar payback period is how long it takes for your solar savings to match the cost of going solar. Here’s how to calculate it.
( Total solar cost - Upfront incentives ) / Annual savings = Payback period in years
Expected payback periods included in solar panel quotes are just estimates. Things might change over that time.
An estimated ten-year payback period might be shorter if the electricity rate rises faster than expected. The 2023 state average electricity rate was 12.93 cents/kWh, but 10 years earlier in 2013, it was 10.97 cents/kWh, an increase of almost 18%.
Credit: US Energy Information Agency
North Carolina Utilities and Rooftop Solar Panels
Your utility company’s policies, electricity rates, and other factors affect your experience going solar and your savings.
| Utility | Avg. 2023 electric rate (cents/kWh) | Net metering type | Max system size for net metering | Max offset for net metering |
|---|---|---|---|---|
| Duke Energy Progress | $14.18 | Monthly net metering | 20 kW (AC) | 100% |
| Duke Energy Carolinas | $11.88 | Monthly net metering | 20 kW (AC) | 100% |
| Brunswick Electric | $13.96 | 1:1 net metering | 10 kW (AC) | 100% |
| EnergyUnited | $11.74 | Net billing | 25 kW (AC) | No max |
| Union Power Cooperative | 12.61 | Net billing | N/A | No max |
| Wake Electric Membership Corporation | 12.53 | Net billing | 25 kW (AC) | No max |
Electric rate data taken from the EIA. Data and policies in the above table may change. Confirm your utility’s policies with the utility itself.
Gas utilities and home electrification
If you have natural gas service at your home, you have two utility bills. You can eliminate your gas bill and clean up your energy usage by pursuing home electrification. Home electrification and solar could help you reduce your overall energy costs since you’ll be able to cover more of your energy use with renewable solar energy.
North Carolina Gas Utilities
| Dominion Energy North Carolina | Frontier Natural Gas Company |
|---|---|
| Piedmont Natural Gas Company | Toccoa Natural Gas |
Leasing Solar Panels in North Carolina
If you want to install solar panels at home but you’re balking at the price and don’t want to take out a loan, third-party ownership (TPO) might be an option for you. TPO is a blanket term for leases and power purchase agreements (PPAs).
Under a lease, you make set monthly payments for panels on your roof owned by the leasing company. With a PPA, you pay for the electricity the panels generate.
Palmetto’s LightReach Energy Plan comes with predictable monthly payments designed to save you money in year one. Palmetto is the only provider of residential leases approved by the North Carolina Utilities Commission and active in the state.
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Solar Panel Maintenance in North Carolina
Once solar panels are on your roof, they can be low maintenance equipment. You may want to clean your panels if you don’t get regular precipitation. For larger repairs, which can crop up, there are protection plans, like Palmetto Protect, which offers system monitoring, proactive service alerts, extended warranties, and a production guarantee, depending on your chosen level of coverage.
Solar Panels and Hurricanes
North Carolina is no stranger to hurricanes, unfortunately. The good news is that solar panels can weather a hurricane as well as the roof they’re attached to.
Wind-thrown debris can damage panels, like it can your roof, so you’ll want to make sure that your solar panels are covered by your homeowners insurance policy.
After a hurricane, solar panels paired with a battery can provide some resilience if your power is knocked out. The size of your battery system will determine how much of your home you can keep powered up. Once the clouds clear, your solar panels will be able to charge up the battery during the day.
Finding the Best Solar Companies in North Carolina
Picking the best solar company for you is one of the most important decisions you’ll make in going solar. Make sure you find a company that answers your questions, installs your panels well, and quickly resolves any issues that arise. How do you do that? Here are some tips.
- Find a company that clearly answers your questions and gives you time to make a decision on your own.
- Read reviews — both positive and negative — to get a balanced view of the company. Even the best solar company will have detractors
- Talk to friends and neighbors who have experience with solar installers
- Compare quotes, warranties, and equipment offered
Palmetto Reviews
“Right from the time we had our solar installed to downloading the Palmetto Solar app. Palmetto have been an excellent company, upfront with their billing, and everything is clearly understandable on the app. Would recommend them to anyone that wants to listen.” Craig H., Google Review
“I chose Palmetto because it is a well established company, with years of service. I would recommend this company to anyone interested in solar panels.” Sherry S. 10/7/2024 Google Review
“Excellent work and the best thing, apart from the generation of electricity, is the generation of savings that Palmeto gives us.” Nelson D. 10/5/2024 Google Review
“This was a good choice for us. Everything was explained in advance. Installation happened on time. Palmetto responds quickly when we have questions. We are enjoying the savings every month.” Linda P. 10/9/2024 Google Review
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Frequently Asked Questions
Does solar make sense in North Carolina?
North Carolina is one of the states with the most solar panels installed in the country, according to the Solar Energy Industries Association. The state has enough solar to power over 1 million homes.
With plenty of sun and the risk of extreme weather-caused outages, solar panels can be a great fit.
Do solar panels increase your home value in North Carolina?
Solar panels are likely to increase property value. That’s according to plenty of research, like a 2022 analysis by Rocket Homes that found homes with solar panels sold faster and were more likely to sell above asking price.
How much does it cost to go solar in North Carolina?
Solar prices vary by state and city and even from home to home. One national estimate says solar panels cost $3.24 per watt on average at the start of 2024. Solar panel installations can vary in price depending on the local cost of labor, the roof's complexity, the system's size, whether a battery is included, and more.
Does North Carolina have net metering?
Some of North Carolina’s utilities offer 1-to-1 net metering. Duke Energy (Duke Energy Carolinas and Duke Energy Progress) offers something slightly different. As of September, 2024, any credits you carry forward to future months are credited at 3.4 cents per kilowatt-hour, instead of the full retail rate.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
