There’s a reason so many customers are switching to solar energy in North Carolina; it’s more financially rewarding than ever with solar panels saving homeowners an average $1800 per year. And if you’re a business owner? You can save even more! At 8MSolar, we can help you make the switch and find the perfect solar energy tax credit or rebate for you.
Net metering is a North Carolina solar incentive that allows you to essentially “sell” any unused solar power you generate back to the national grid and local utility companies, so not only will you save big on electricity bills, but you can actually profit from solar power! The solar system costs will essentially pay for themselves over time.
NC offers a property tax abatement program to eliminate tax increases resulting from the addition of a solar system, with 80% of a solar energy electric system's appraised value being tax-exempt
If you invest in a residential solar installation, you can receive 30% of your bill back come tax time. For example, if the total cost of your PV system is $24,000, then you owe $7,200 less on your federal taxes
North Carolina solar incentives first started as a result of House Bill 589 in 2017. With this bill, clean energy advocates created a way to incentivize individuals to choose solar in North Carolina. The bill’s purpose is to minimize switching costs by offering local rebates for individuals seeking affordable clean energy.
Right now the main incentive available is the 30% Federal Tax Credit which was restored in 2022 with the signing of the Inflation Reduction Act. This 30% tax credit will run until 2032 when it is set to decrease to 26%.
If your entire solar project costs $18,000; you would receive $5,400 back via this tax credit when you file your taxes for the year in which the system was installed. You do not have to owe taxes in order to claim this credit – your consultant can review this with you in greater detail and go over any specific questions!
Getting tax credit for your solar panel installation is pretty straightforward. Hold onto all your receipts, invoices, and documentation related to your solar panel project and use them to file for a massive 30% tax credit during tax season.
In most cases, the residential solar energy credit isn’t refundable. That means you can only reduce your tax credit to $0.00. So if you have $100 left over, this will be carried forward to the following year.
No, there are no tax liabilities when installing solar panel systems. 8MSolar can help you with federal solar tax credits and local solar tax credits to ensure that you are getting the best rebates possible.
There are no state-specific tax credits for solar systems in North Carolina. However, all federal incentives apply, including the 30% tax credit.