Commercial Solar Incentives in North Carolina

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Duke Energy's Solar Rebate Program

While Duke Energy provides service to multiple states, its Solar Rebate Program is only available in North Carolina. Commercial customers get 30 cents per watt for a rebate of up to $30,000.

Property Tax Exemption 

North Carolina offers an 80% property tax exemption for commercial installations, meaning only 20% of the value of your solar system will count towards your taxable property value.

Commercial Property Tax Deduction 

A tax deduction is available to owners of qualified commercial buildings in North Carolina. For property placed in service in 2023 and after, the deduction equals $0.50 per square foot of any building with 25% energy savings. This increases by $0.02 per square foot for each percentage point beyond 25%, up to a maximum of $1.00 per square foot for a building with 50% energy savings. Projects that meet labor requirements detailed in the Inflation Reduction Act can qualify for a huger deduction of between $2.50 and $5.00 following the same rule as above with a $0.10 increase per square foot instead of $0.02.

Net Metering Program 

Both Duke Energy and Dominion Energy offer net metering-like programs for commercial solar systems where businesses with renewable energy systems installed can receive credits for any excess energy their system produces. Learn more about North Carolina's net metering programs here. 

There are several federal solar incentives available to business owners in North Carolina that can be used in combination with the state's existing solar program. These combined incentives can substantially lower the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in North Carolina may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

North Carolina business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

North Carolina Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local North Carolina installer to see which incentives can contribute to your solar system. 

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