Is Solar Worth It in North Carolina in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for North Carolina homeowners — without the federal ITC.
Cost Per Watt
$2.80
installed
Electricity Rate
$0.126
per kWh
Payback (No ITC)
16.1 yr
current reality
Payback (With 30% ITC)
11.3 yr
hypothetical
25-Year ROI
55%
return on investment
Incentive Breakdown — North Carolina
Available incentives for a typical 7kW residential solar system in North Carolina
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneNorth Carolina's state tax credit for solar expired at the end of 2015.
SREC Market
~$35/yrNorth Carolina has a limited SREC market with values around $5/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: Property tax exemption for solar; SREC market value ~$35/year.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in North Carolina
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC
- $0
- Net Cost
- $19,600
- Annual Savings
- $1,215/yr
- Payback Period
- 16.1 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC (30%)
- -$5,880
- Net Cost
- $13,720
- Annual Savings
- $1,215/yr
- Payback Period
- 11.3 years
Impact: Without the federal ITC, North Carolina homeowners face a 4.8-year longer payback period — paying $5,880 more out of pocket.
Net Metering Policy — North Carolina
How North Carolina compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
North Carolina requires net metering at full retail rate under NCUC rules (Duke Energy territories).
Cost Per Watt Benchmark — North Carolina
North Carolina Average
$2.80/W
National Average
$3.05/W
Typical 7kW System
$19,600
North Carolina's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in North Carolina breaks even in 16.1 years. With the former 30% ITC, payback would drop to 11.3 years.
Without Federal ITC
16.1
years to break even
With Former 30% ITC
11.3
years to break even
Production Details
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