Solar in North Carolina

Duke Energy's net metering transition is the central policy story. House Bill 951 (2021) directed the utilities commission to pursue carbon reduction, framing the larger transformation in which the residential solar tariff sits. Duke subsequently filed for a shift from full retail net metering to a net-billing-plus-time-of-use structure for new residential interconnections, reducing the value of exported surplus while introducing peak/off-peak pricing that rewards self-consumption and storage. The exact terms and phase-in differ between Duke Energy Carolinas and Duke Energy Progress, and grandfathering applies to existing customers for a set period.

The 80% property tax exemption is the state's stable residential incentive: 80% of the appraised value of a solar system is exempt from property tax. North Carolina's former 35% renewable energy tax credit expired at the end of 2015 and has not been reinstated, so there is no state-level tax credit to stack on the federal ITC. Dominion Energy, serving the northeast, operates under its own Virginia-rooted net metering rules for its North Carolina customers.

The state's electric cooperatives — which serve significant rural territory — set their own solar terms, and a number offer community solar or more favorable residential programs than the investor-owned utilities. The overall policy direction, driven by HB 951's carbon framework, is supportive of solar broadly but increasingly structures residential compensation around time-of-use and net billing rather than full retail net metering.

North Carolina's 4.9 peak sun hours make it one of the better solar resources on the East Coast, with the coastal plain (Wilmington, the Outer Banks) and the Sandhills running above the state average and the western mountains (Asheville region) somewhat lower due to terrain shading and cloud cover. The Piedmont — Charlotte, the Triangle — sits near the average, with strong, consistent summer production driven by long, clear days.

As Duke transitions its residential customers toward net billing with time-of-use pricing, the optimal design philosophy is shifting from raw output maximization toward production that aligns with on-site consumption and peak-rate periods. Under full retail net metering, a south-facing latitude-tilt array sized to cover annual consumption is ideal. Under the new structure, west-facing arrays that push output into the late-afternoon and early-evening peak window — when Duke's time-of-use rates are highest — earn more per kilowatt-hour, even if total production is slightly lower. This is the same peak-alignment logic now driving design in California and New York.

The transition is being phased, and customers interconnected before the change are generally grandfathered at their original terms for a defined period. New interconnections fall under the revised tariff, which makes understanding the current Duke structure — and modeling a system against it — essential for anyone installing solar in the state today.

North Carolina's $2.80/W installed cost ties with Florida as the lowest among the ten, keeping a typical 8 kW system around $22,400 before incentives. The 30% federal credit (~$6,720) and the 80% property tax exemption (which shields most of the system's value from reassessment) are the structural incentives. There is no state income tax credit, no sales tax exemption, and no SREC market for residential systems.

Payback lands near 14.5 years on the 8 kW model, held back primarily by the state's relatively low retail electricity rate (~$0.126/kWh) — each offset kilowatt-hour displaces cheaper power than in high-rate states. The net metering transition is the swing factor: grandfathered full-retail customers see faster payback than those on the new net-billing/time-of-use structure, where exported surplus is worth less and the value shifts toward self-consumption and peak-period offset.

For homeowners on the new Duke tariff, sizing for self-consumption and peak alignment — rather than maximum export — tends to produce better returns. Batteries earn their keep primarily through peak-rate arbitrage under time-of-use billing and outage resilience during the state's hurricane season and severe weather, though there's no dedicated state storage incentive.