North Carolina Solar Power Rebates, Tax Credits, and Incentives

Lake Junaluska, N. Carolina

Solar Legislator Score:

From the Great Smoky Mountains down to Cape Fear on the Atlantic coast, North Carolina has a natural environment to be proud of. With everything from golf to wineries, the great outdoors is part and parcel of living in the Tar Heel state. Don’t forget those Carolina blue skies, either. How has the state been protecting this environment by promoting renewable energy sources such as solar power?

First, we invite you to input your average monthly power bill into the below spreadsheet. Double click on the dollar value then input the amount and hit ‘enter’. Our calculator will then do its magic to display how many panels you’ll need to knock your bill down to zero as well as a nifty break-even analysis which takes into account the unique incentives and credits available in North Carolina. These figures are rather conservative and assume you have a southerly facing or flat roof, you have no shading issues, and have excellent credit. Also, the cost per watt installed of $10.00 is probably on the high end. To get a precise evaluation of your property, we recommend hooking up with of our friendly solar experts in North Carolina for more details. Hopefully, from this calculation you get a good sense of why solar makes sense now in North Carolina.

Click the play button here to learn how the North Carolina solar calculator works:

Alternative content

Below the calculator spreadsheet, check out the legislative steps which have cleaned up North Carolina’s energy market.

 
STATE LEGISLATION

North Carolina has been doing fairly well with promoting clean power over the past few years. In August 2007, North Carolina overhauled its renewable energy rules with Senate Bill 3, which authorized tax credits for solar power generation. Senate Bill 3 also requires that the state generate at least 12.5% of its power from renewable sources by 2021. That’s not a phenomenal percentage, but then North Carolina is the first state in the Southeast to adopt a renewable energy standard, so kudos to the legislature for being first into the water.

NET-METERING

In October 2005 the Utilities Commission laid out rules for net-metering by investor-owned utilities in North Carolina; the order was amended in 2006. Maximum system capacities were set at 20kW for residential customers and 100kW for businesses. The utilities are only required to enroll 0.2% of the last year’s peak load, meaning that new systems are subject to a first-come, first-served allocation plan until 2018 when this becomes the minimum. Net excess power generated is credited back to the user on the next monthly bill. At the beginning of each summer season, any credit for net excess generation is granted to the utility. The North Carolina Utilities Commission only wants individuals to develop electrical generation systems that meet their own personal or corporate needs. Lastly, the net-metering program requires that customers switch to time-of-use metering.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

Renewable Energy Tax Credits

In 2007, when the legislature passed Senate Bill 3, tax credits became available to both residential and corporate customers in North Carolina. The credit covers up to 35% of the cost of a solar electricity or other renewable energy system, capped at $10,500 for residential systems and a whopping $2.5 million for commercial and industrial systems. Residential customers get that credit all in one year unless the total is more than 50% of their tax liability. If so, the rest of the credit is spread over 5 years. Businesses are required to take their credit over 5 years.

One really cool feature of Senate Bill 3 is that you can also take a tax deduction for a donation to a non-profit organization that is working on a renewable energy project. This is a great way to get people on the clean power bandwagon!

Check out these other great solar rebates and solar incentives for renewable energy in North Carolina:

Corporate Tax Credit

* Renewable Energy Tax Credit – Corporate

Green Building Incentive

* Asheville – Building Permit Fee Waiver

Personal Tax Credit

* Renewable Energy Tax Credit – Personal

Production Incentive

* NC GreenPower Production Incentive

* TVA – Green Power Switch Generation Partners Program

Property Tax Exemption

* Active Solar Heating and Cooling Systems Exemption

State Loan Program

* Energy Improvement Loan Program

Utility Loan Program

* Brunswick EMC – Residential Energy Efficiency Loan Program

* Carteret-Craven Electric Cooperative – Energy Conservation Loan Program

* Piedmont EMC – Conservation Loan Program

* Progress Energy Carolinas – Energy Efficiency Financing Program

* PSNC Energy – Residential Energy Efficiency Loan Program

* South River EMC – EC Home Improvement Loan Program

Utility Rate Discount

* Dominion North Carolina Power – Energy Saver Home Plus

* Duke Energy – Energy Star Homes Rate Discount Program

* Four County EMC – All Electric Rate Reduction Program

* Progress Energy Carolinas – Energy Efficient Home Program

* Randolph EMC – Energy Efficient Rate Discount Program

Utility Rebate Program

* Blue Ridge Mountain EMC – Energy Right Residential Program

* Cape Hatteras Electric Cooperative – Energy Efficient Water Heater Rebate Program

* City of Gastonia Electric Department – Energy Efficient Water Heater Rebate Program

* City of New Bern Electric Department – Energy Management Rebate Program

* City of Statesville Electric Utility Department – Residential Energy Efficiency Rebate Program

* An interesting article on leasing solar in North Carolina

CONSENSUS
When compared to their neighbors in the Southeast, North Carolina has been doing great things to promote solar power and other clean energy sources. Most of the real work that has been done by the legislature has come in the last couple of years. 2007 was a breakthrough year for renewable energy in the state, but it’s not time to rest yet. North Carolina could become a model for the rest of the Southeast if state leadership continues to build up a market for solar power.

Click here to have multiple solar installers bid to upgrade your North Carolina home or business.